Burgos v. Sunvalleytek International, Inc.

CourtDistrict Court, N.D. California
DecidedDecember 11, 2020
Docket4:18-cv-06910
StatusUnknown

This text of Burgos v. Sunvalleytek International, Inc. (Burgos v. Sunvalleytek International, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burgos v. Sunvalleytek International, Inc., (N.D. Cal. 2020).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 INES BURGOS, et al., Case No. 18-cv-06910-HSG

8 Plaintiffs, ORDER GRANTING PRELIMINARY APPROVAL OF CLASS ACTION 9 v. SETTLEMENT

10 SUNVALLEYTEK INTERNATIONAL, Re: Dkt. No. 48 INC., 11 Defendant. 12 13 Pending before the Court are Ines Burgos and Mongkol Mahavongtrakul’s (“Plaintiffs”) 14 motion for final approval of class action settlement, for attorneys’ fees, costs and expenses, and a 15 class representative enhancement payment. Dkt. No. 48 (“Mot.”). Defendant Sunvalleytek 16 International, Inc. (“Sunvalleytek” or “Defendant”) opposes the motion for attorneys’ fees. Dkt. 17 No. 49 (“Opp.”). The Court held a hearing on the motion on August 20, 2020. See Dkt. No. 51. 18 At the hearing, the Court directed the parties to file a supplemental memorandum regarding the 19 class definition and proposed class notice. Id. On September 24, 2020, Plaintiffs filed a 20 supplemental memorandum, requesting that the Court approve the settlement as amended; order 21 that notice be disseminated, and set a date for a final fairness hearing. Dkt. No. 54. In light of 22 Plaintiffs’ request, the Court will view the pending Motion as a motion for preliminary approval. 23 For the reasons detailed below, the Court GRANTS Plaintiffs’ motion for preliminary approval of 24 class action settlement.1 25 26

27 1 Because the parties have agreed to a classwide notice plan and a final fairness hearing, the Court 1 I. BACKGROUND 2 A. Factual Background 3 Under the RAVPower label, Sunvalleytek manufactures, markets, and distributes for sale 4 nationwide power banks (“Power Banks”) that consumers use to charge their personal electronic 5 devices (“PEDs”), such as laptops, tablets, and cellphones. Dkt. No. 20 (“FAC”) ¶¶ 1-3. The 6 capacity of Power Banks is measured in milliampere-hours (“mAh”). Id. ¶ 3. The amount of 7 mAh available to charge PEDs controls how frequently consumers may charge their PEDs and 8 how much power is available to the consumer for each charge. Id. Plaintiffs allege that the 9 products’ actual capacities are substantially lower than what Sunvalleytek represents. Id. ¶ 19. 10 Because the internal circuitry in a Power Bank uses power that cannot be used to recharge 11 a PED, and owing to voltage conversion losses, Plaintiffs contend that a Power Bank is incapable 12 of delivering all of the internal battery capacity. Dkt. No. 48-1 ¶¶ 7-8. Plaintiffs also contend that 13 it is misleading and deceptive to label a Power Bank with a specific mAh when it is only the 14 internal battery cells that have that mAh capacity. Dkt. No. 48 2:10-11. 15 Accordingly, on November 14, 2018, Plaintiffs filed this class action complaint against 16 Defendant, asserting violations of the California Legal Remedies Act, Cal. Civ. Code §§ 1750- 17 1785 (“CLRA”); violations of the False Advertising Law (“FAL”), Cal. Bus. & Prof. Code §§ 18 17500, et seq.; violations of the Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code §§ 19 17200-17210; violations of the New York General Business Law New York (“GBL”) §§ 349, 350; 20 violations of materially identical state consumer protection statutes; breach of express warranty; 21 and unjust enrichment. FAC ¶¶ 38-114. 22 B. Settlement Agreement 23 i. Original Terms 24 Following formal discovery and with the assistance of a mediator, the parties entered into a 25 settlement agreement. Dkt. No. 48-1 (“SA”). The key terms are as follows: 26 Settlement Benefits: 27 A. As part of the consideration for this Agreement, Sunvalleytek conjunction with the mAh number (where the mAh number is the sum 1 of the nominal rated capacity of the internal battery cells of the Power Bank) 2 2. Change the user guide specifications to say the words “battery capacity” in conjunction with the mAh number (where the mAh 3 number is the sum of the nominal rated capacity of the internal battery cells of the Power Bank) 4 3. Change the product description in the Amazon listings to convey that the specified mAh is the sum or total of the nominal rated capacity 5 of the internal battery cells; and 4. Change the Amazon listing the bullet points to say “xxxx mAh 6 internal battery capacity” or “internal battery capacity xxxx mAh” (where xxxx represents the number that is the sum of the nominal 7 rated capacity of the internal battery cells in the power banks.) 8 SA § IV.A 9 Release:

10 “Released Claims” means any and all actions, claims, demands, rights, suits, and causes of action of whatever kind or nature that could 11 reasonably have been, or in the future might reasonably be asserted by, Plaintiffs or Defendant, either in the Action or in any action or 12 proceeding in this Court or in any other court or forum, against the Released Parties, including damages, costs, expenses, penalties, and 13 attorneys’ fees, known or unknown, suspected or unsuspected, in law or equity arising out of or relating to legal claims made by Plaintiffs 14 out of [sic] or relating to the allegations in the Action or Defendant’s labeling, marketing, advertising, packaging, promotion, manufacture, 15 sale, and distribution of all Covered Products as alleged in the Action. For avoidance of doubt, this includes, all such claims that relate in 16 any way to this Action or the capacity of internal cells of the batteries as measured in mAh, statements that were or are contained on the 17 Covered Products or otherwise relate to the labeling, marketing, advertising, packaging, promotion, manufacture, sale, and 18 distribution of the Covered Products with respect to capacity in conjunction with mAh, including future identical statements about 19 Covered Products, which have been asserted or which could reasonably have been asserted by the Releasing Parties in the Action, 20 including but not limited to claims alleging any type of bad faith, frivolous or vexatious litigation, fraud, misrepresentation, breach of 21 warranty, unjust enrichment, or unfair trade practice under any state or federal law (including all claims for injunctive or equitable relief), 22 but not including claims for personal injury or attorney’s fees or costs (other than the attorney’s fees and costs the Court may award pursuant 23 to this Settlement).

24 SA § V.B.1. The “Released Parties” are defined as:

25 Plaintiffs and Sunvalleytek, including all of their respective predecessors, successors, assigns, parents, subsidiaries, divisions, 26 departments, and affiliates, and any and all of their past, present, and future officers, directors, employees, stockholders, partners, agents, 27 servants, successors, attorneys, insurers, representatives, licensees, 1 Released Parties are intended third-party beneficiaries of the Agreement. 2 3 Id. § V.B.2. The “Releasing Parties” are defined as “Plaintiffs Ines Burgos and Mongkol 4 Mahavongtrakul and Sunvalleytek.” Id. § V.B.3. In addition, “[a]bsent class members or 5 members of the putative class or the settlement class shall not release any claims, and are not 6 bound in any way, under this Settlement.” Id. § V.F. 7 Class Notice: There is no notice provided to class members. 8 Opt-Out Procedure: There is no opt-out procedure in the settlement agreement. 9 Incentive Award: The Named Plaintiffs applied for incentive awards of $5,000. Id. § 10 VI.E. 11 Attorneys’ Fees and Costs: Class Counsel shall make an application for an award of 12 Attorneys’ Fees for work on this case (not to include any work on any related cases) not exceeding 13 $315,000. Defendant may oppose that application except that it shall not propose to pay an 14 amount less than $45,000. Id. § VI.B. 15 ii. Amended Terms 16 At the August 20, 2020 hearing on the motion, the Court ordered the parties to meet and 17 confer regarding the class definition and class notice. See Dkt. No. 51. The parties then agreed to 18 an amended settlement agreement with a new class definition and class notice plan. Dkt. No. 54.

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Burgos v. Sunvalleytek International, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/burgos-v-sunvalleytek-international-inc-cand-2020.