Cordova-Gonzalez v. TW Lath-N-Stucco, Inc

CourtDistrict Court, D. Colorado
DecidedFebruary 3, 2023
Docket1:21-cv-01617
StatusUnknown

This text of Cordova-Gonzalez v. TW Lath-N-Stucco, Inc (Cordova-Gonzalez v. TW Lath-N-Stucco, Inc) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cordova-Gonzalez v. TW Lath-N-Stucco, Inc, (D. Colo. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Magistrate Judge Maritza Dominguez Braswell

Civil Action No. 21–cv–01617–CMA–MDB

RAMON CORDOVA-GONZALEZ, PEDRO DIAZ-ARREGUIN, and SAUL ROJAS-RAMIREZ, on their own behalf and on behalf of others similarly situated, and HORLANDO DOMINGUEZ, ARTURO DOMINGUEZ, RUBEN JUAREZ, DIEGO JUAREZ, and ALDO MENDOSA, on their own behalf,

Plaintiffs,

v.

TW LATH-N-STUCCO, INC., and THOMAS MURRAY WARE II,

Defendants.

ORDER RE: JOINT MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT AGREEMENT & PLAINTIFFS’ UNOPPOSED MOTION FOR AWARD OF ATTORNEY’S FEES AND COSTS OF CLASS ACTION SETTLEMENT AGREEMENT

Before the Court is the parties’ Joint Motion for Final Approval of Class Action Settlement Agreement ([“Joint Motion for Final Approval”] Doc. No. 52.) and Plaintiffs’ Unopposed Motion for Award of Attorney’s Fees and Costs of Class Action Settlement Agreement ([“Motion for Fees and Costs”] Doc. No. 53.) On consent of the parties and an order of reference from the presiding district judge, this Court is authorized to issue a final determination on both motions. (Doc. Nos. 54, 58); see 28 U.S.C. § 636. In addition to the relevant pleadings and supporting materials, the parties supplemented their arguments during a final hearing, which took place on January 11, 2023. (Doc. No. 55.) In response to the Court’s directive, Plaintiffs also filed a notice of supplemental authority. (Doc. No. 59.) For the reasons set forth herein, the Court GRANTS both motions. BACKGROUND

This case concerns class claims against a Colorado Springs-based stucco business, which allegedly failed to pay Plaintiffs and others certain wages required by state and federal law. (Doc. No. 12.) The claims were filed pursuant to the Fair Labor Standards Act [the “FLSA”], 29 U.S.C. §§ 201 et seq., the Colorado Overtime and Minimum Pay Standards Order (the “COMPS Order”), 7 C.C.R. 1103-1, (and predecessor Wage Orders), the Colorado Minimum Wage Act (“MWA”), C.R.S. § 8-6-101, et. seq. and the Colorado Wage Claim Act (the “CWCA”), C.R.S. § 8-4-101 et. seq. as implemented by the COMPS Order (and predecessor Wage Orders).1 According to Plaintiffs, Defendant failed to: 1) pay for travel time, 2) provide compensated rest breaks, and 3) pay certain overtime (“Damages Categories”). (See generally Doc. No. 12.) A description of the claims and a brief history of this case is set forth in the Court’s Order preliminarily approving the subject settlement. ([“Preliminary Approval Order”] Doc. No. 51.) In the Spring of 2022, the parties successfully mediated and resolved their claims. (Doc.

Nos. 33, 35, 36.) The parties filed a Joint Motion for Preliminary Approval of Class Action

1 The Amended Complaint also alleges a violation of 26 U.S.C. § 7434(a) with respect to one Plaintiff, claiming that Defendant “willfully filed fraudulent information returns with respect to payments made to Plaintiff Cordova-Gonzalez.” (Doc. No. 12 at ¶¶ 134-39.) Settlement Agreement on July 26, 2022. (Doc. No. 44.) On September 19, 2022, the Court granted that motion in its Preliminary Approval Order. (Doc. No. 51.) The Court also approved the parties’ proposed notice. (Id. at 14-15 (referencing Doc. No. 44-2).) Plaintiffs were ordered “to disseminate the Notice to all Class Members and afford them at least forty-five (45) days from the date of the Notice mailing, to opt-out of—or object to—the Settlement Agreement.” (Doc. No. 51 at 15.) The parties filed the instant motions on December 27, 2022, and the Court conducted a final fairness hearing on January 11, 2023. (Doc. No. 55.) The Proposed Settlement Agreement The proposed settlement agreement defines the settlement class as: All hourly “production workers” employed by T.W. Lath-N-Stucco, Inc. between June 14, 2015, and the present who were allegedly not paid all wages due. “Production workers” include workers employed on scaffold, lath and plaster crews. “Production workers” excludes workers employed in office- based administrative tasks or sales.

(Doc. No. 47 at 5.) Plaintiffs Ramon Cordova-Gonzalez, Pedro Diaz-Arreguin, Saul Rojas- Ramirez, are “Class Representatives,” and the Class Representatives, together with Horlando Dominguez, Arturo Dominguez, Ruben Juarez, Diego Juarez and Aldo Mendosa are “Named Plaintiffs,” for purposes of the proposed settlement agreement. (Id. at 1, 13.) The agreement will require Defendants to make a total non-reversionary payment of $150,000. (Doc. No. 47 at 8.) Of that total amount, $50,000 will go to Plaintiffs’ counsel as attorney’s fees and costs (id. at 14- 15), and each of the three proposed class representatives will receive a $5,000 incentive award for the time and effort they devoted to the litigation. (Id. at 15-16.) The remaining $85,000 will be distributed across all Class Members according to pre-set calculations tied to the Damages Categories, except that the Named Plaintiffs will release additional non-class claims and will be compensated accordingly. (Id. at 12-14.) And finally, Mr. Cordova-Gonzalez will be compensated for the additional claim he intends to release. (Id.) Exhibit C to the proposed settlement agreement is a complete list of all Class Members and the amounts each person is potentially due under the terms of the agreement. (Id. at 60-71.) Every Class Member is subject to the same pre-set formulas that will determine how much each person will receive under the proposed settlement agreement. The only people who will receive something more than what is dictated by the formula are those who are releasing additional claims and those who have served in a representative capacity. In the Joint Motion for Final Approval, the parties ask this Court for an order granting final certification, finalizing the appointment of class counsel and Class Representatives,

granting final approval of the proposed settlement agreement ordering compliance, and dismissing this action with prejudice. (Doc. No. 52 at 2.) In the Motion for Fees, Plaintiffs ask “for an Order approving the attorney fee and cost award of $50,000.00 agreed in the parties proposed Settlement Agreement.” (Doc. No. 53 at 1) In support of that motion, Plaintiffs attach the Declaration of Adam M. Harrison. (Doc. No. 53- 1.) Mr. Harrison is an attorney who describes his practice as “focused on wage and hour class and collective actions under the Fair Labor Standards Act, the Colorado Wage Act, the Colorado Minimum Wage Act, and similar state wage and hour laws.” (Id.) He states under penalty of perjury that his “litigation rate for this type of case is $450.00 per hour,” and that given class

counsel’s background, his “petitioned-for rate of $400 per hour is well below the market rate within the community of labor and employment lawyers in Colorado for an attorney of his experience and expertise.” (Id.) LEGAL STANDARD Joint Motion for Final Approval “The authority to approve a settlement of a class or derivative action is committed to the sound discretion of the trial court.” Jones v. Nuclear Pharmacy, Inc., 741 F.2d 322, 324 (10th Cir. 1984). In deciding whether to approve a settlement in a class action, a court must first ensure the class satisfies the Rule 23(a) requirements of “numerosity,” “commonality,” “typicality,” and adequate representation. Fed. R. Civ. P. 23(a)(1)-(4).

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Cordova-Gonzalez v. TW Lath-N-Stucco, Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cordova-gonzalez-v-tw-lath-n-stucco-inc-cod-2023.