Gutierrez v. ACSC Management Services CA2/4

CourtCalifornia Court of Appeal
DecidedDecember 18, 2025
DocketB321079
StatusUnpublished

This text of Gutierrez v. ACSC Management Services CA2/4 (Gutierrez v. ACSC Management Services CA2/4) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gutierrez v. ACSC Management Services CA2/4, (Cal. Ct. App. 2025).

Opinion

Filed 12/18/25 Gutierrez v. ACSC Management Services CA2/4 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION FOUR

BLANCA GUTIERREZ, et al., B321079

Plaintiffs and (Los Angeles County Respondents, Super. Ct. No. 19STCV44116)

v.

ACSC MANAGEMENT SERVICES, INC., et al.,

Defendants and Respondents;

VICTOR ESTRADA,

Appellant;

JONATHAN TERCERO,

Appellant. APPEALS from judgment of the Superior Court of the County of Los Angeles, Teresa A. Beaudet, Judge. Appeals dismissed. Becerra Law Firm and Joseph R. Becerra; Gleason & Favarote, Torey J. Favarote and David H. Danning for Appellant Victor Estrada. Law Offices of Todd M. Friedman, Todd M. Friedman and Adrian R. Bacon for Appellant Jonathan Tercero. David Yeremian & Associates, David Yeremian; D. Law, Emil Davtyan and Natalie Haritoonian; Law Offices of Sahag Majarian II, Sahag Majarian II; Law Office of Neal J. Fialkow, Neal J. Fialkow for Plaintiffs and Respondents Blanca Gutierrez and George Lawson. CDF Labor Law, Timothy M. Freudenberger, Ashley A. Halberda, and Brian E. Cole II for Defendants and Respondents ACSC Management Services, Inc., Auto Club Enterprises, and Automobile Club of Southern California.

__________________________

The Private Attorneys General Act of 2004 (PAGA) (Lab. Code, § 2698 et seq.) allows aggrieved employees, acting as the agent of the state’s labor enforcement agencies, to bring an action against their employers to recover civil penalties for violations of the Labor Code.1 Overlapping PAGA actions are sometimes simultaneously prosecuted by different employees who allege the same violations and use the same theories. This appeal involves three such actions.

1 Undesignated statutory references in this opinion are to the Labor Code.

2 Respondents Blanca Gutierrez and George Lawson (the Gutierrez plaintiffs) prosecuted the underlying PAGA action against respondents ACSC Management Services, Inc. (ACSC), Auto Club Enterprises (Enterprises), and Automobile Club of Southern California (AC So. Cal.) (the Auto Club defendants). Simultaneously, appellants Victor Estrada and Jonathan Tercero were each prosecuting their own PAGA actions against AC So. Cal. The Gutierrez parties settled, and their agreement included a release that encompassed appellants’ PAGA claims against AC So. Cal. The state agency charged with oversight and review of PAGA settlements received multiple notices detailing the alleged PAGA violations and copies of the settlement and judgment. It declined to involve itself in the case or object to the settlement. The trial court approved the settlement and entered judgment. The state agency cashed the settlement check. Seeking to unwind the settlement, appellants Estrada and Tercero both moved to intervene in the Gutierrez action, and Tercero moved to vacate the judgment and settlement approval order. The trial court denied these motions. Estrada appeals from the order denying his motion to intervene, and Tercero appeals only from the order denying his motion to vacate. Appellants lacked standing to make these motions and to appeal, and accordingly, we dismiss the appeals.

FACTUAL AND PROCEDURAL BACKGROUND A. The Gutierrez Action In October 2019, Gutierrez submitted a written notice to the California Labor and Workforce Development Agency (“LWDA”) stating her intent to bring a PAGA action against

3 ACSC and Enterprises on behalf of herself and other aggrieved employees. She described alleged violations of the Labor Code that included the defendants’ failure to pay minimum wages, to pay wages and overtime, to provide lawful meal and rest breaks, to provide accurate itemized wage statements, and to timely pay final wages upon termination or separation. The LWDA did not express its intent to prosecute the action. In December 2019, Gutierrez submitted a first amended PAGA notice to the LWDA. She filed her initial complaint against ACSC and Enterprises alleging causes of action for (1) failure to pay minimum wages (§§ 1194, 1197); (2) failure to pay wages and overtime (§ 510); (3) meal period liability (§§ 226.7, 512); (4) rest break liability (§ 226.7); (5) failure to furnish accurate itemized wage statements and keep accurate payroll records (§§ 226, subd. (a), 1174); (6) failure to timely pay final wages upon termination or separation (§§ 201, 202, 203, and 204) and (7) failure to pay reporting time pay. A first amended complaint was filed in October 2020. Gutierrez filed a second amended PAGA notice with the LWDA in September 2021. This notice alleged that she and the aggrieved employees “were jointly employed by” three entities— ACSC, Enterprises, and AC So. Cal.

B. Settlement of the Gutierrez Action, Court Approval, and Entry of Judgment Gutierrez, Lawson, and the Auto Club defendants reached a settlement in October 2021 following mediation before a private neutral. The agreement was conditioned on court approval. Their agreement defined “‘Aggrieved Employees’” as all non- exempt and/or hourly employees in California (1) who worked for

4 the Auto Club defendants for any portion of the time period between February 18, 2018 and court approval of the settlement; and/or (2) who worked an on-call shift within one or more pay periods during the time period between January 1, 2012 and court approval. The settlement terms included a release of the representative PAGA claims that were alleged and could have been alleged in the case and indicated the plaintiffs would be filing a second amended complaint. The Auto Club defendants agreed to pay a total sum of $4.5 million, part of which would be allocated to pay the plaintiffs’ attorney fees and costs, settlement administration costs, and enhancement awards to Gutierrez and Lawson. What remained (nearly $3 million) would be allocated between the LWDA (75 percent) and the Aggrieved Employees (25 percent). The Guttierez plaintiffs filed a third amended PAGA notice with the LWDA on October 28, 2021. The notice identified Lawson as a plaintiff, and it described the Auto Club defendants’ failure to pay the Aggrieved Employees for time they were required to be “‘on call.’” On December 20, 2021, Gutierrez submitted a copy of the proposed settlement agreement to the LWDA. The same day, she filed a motion requesting, among other relief, that the trial court approve the settlement and deem a proposed second amended complaint filed as of the date of such approval. The motion was supported by a 28-page declaration from Gutierrez’s counsel that detailed the case’s procedural history, discovery efforts, the settlement negotiations, and the terms of settlement. Counsel represented that the extensive settlement negotiations were conducted at arm’s length and in good faith. The declaration described the strength of the plaintiffs’ case, the PAGA penalties,

5 and how these were calculated. It also described the attorney fees and costs and how they were calculated, counsel’s experience with employment matters and representative and PAGA cases in particular, and the enhancement awards to the representative plaintiffs. Gutierrez’s counsel attested that he had received nothing from the LWDA indicating that the agency intended to prosecute the action. At a hearing in January 2022, the trial court granted the unopposed motion. It approved the settlement agreement, finding it “is, in all respects, fair, adequate, reasonable, and just and is not arbitrary, oppressive or confiscatory . .

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Owens v. County of Los Angeles
220 Cal. App. 4th 107 (California Court of Appeal, 2013)
In Re the Marriage of Tushinsky
203 Cal. App. 3d 136 (California Court of Appeal, 1988)
Librers v. Black
28 Cal. Rptr. 3d 188 (California Court of Appeal, 2005)
Hearn v. Howard
177 Cal. App. 4th 1193 (California Court of Appeal, 2009)
IBM Personal Pension Plan v. City & County of San Francisco
32 Cal. Rptr. 3d 656 (California Court of Appeal, 2005)
County of Alameda v. Carleson
488 P.2d 953 (California Supreme Court, 1971)
Lee v. West Kern Water District
5 Cal. App. 5th 606 (California Court of Appeal, 2016)
Professional Collection Consultants v. Lauron
8 Cal. App. 5th 958 (California Court of Appeal, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
Gutierrez v. ACSC Management Services CA2/4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gutierrez-v-acsc-management-services-ca24-calctapp-2025.