In re E-3 Systems Litigation

District Court, N.D. California·Decided June 8, 2021·No. 4:19-cv-01453·Unknown

Opinion

JOSE FRANCO, Case No. 19-cv-01453-HSG

Plaintiff, ORDER GRANTING MOTION FOR FINAL SETTLEMENT APPROVAL v. AND MOTION FOR ATTORNEYS' FEES, COSTS, AND CLASS E-3 SYSTEMS, REPRESENTATIVE AWARD Defendant. Re: Dkt. Nos. 61, 62

Pending before the Court is the unopposed motion for final approval of class action settlement filed by Plaintiff Jose Franco. Dkt. No. 62 (“Mot.”). Also pending is Plaintiff’s unopposed motion for attorneys’ fees, costs, and class representative enhancement. Dkt. No. 61 (“Fees Mot.”). On January 29, 2021, the Court granted Plaintiff’s motion for preliminary approval of class settlement. Dkt. No. 58. On May 27, 2021, the Court held a final approval hearing. On June 3, 2021, Plaintiff provided the supplemental briefing directed by the Court, detailing the extent of his involvement with the litigation. Dkt. No. 66. For the reasons set forth below, the Court GRANTS Plaintiff’s motion for final approval and motion for fees, costs, and class representative enhancement. A. Procedural Background Defendant E-3 Systems is a California corporation with its headquarters in Union City, California that provides installations of network and telecom infrastructures. Dkt. No. 1, Ex. A (“Compl.”) ¶ 5. Plaintiff worked as a telecommunications technician, a non-exempt hourly position, for Defendant from August 18, 2014 to May 15, 2018. Dkt. No. 9-1, Ex. B, Declaration On February 14, 2019, Plaintiff filed this putative labor class action alleging nine causes of action against Defendant for (1) Failure to Pay Minimum Wages; (2) Failure to Pay Wages and Overtime under Labor Code § 510; (3) Meal Period Liability under Labor Code § 226.7; (4) Rest- Break Liability under Labor Code § 226.7; (5) Violation of Labor Code §226; (6) Failure to Reimburse Necessary Expenditures under of Labor Code §2802; (7) Violation of Labor Code §221; (8) Violation of Labor Code § 203 and (9) Violation of Business & Professions Code

§ 17200 et seq. Compl. ¶¶ 34–75. On March 20, 2019, Defendant removed the class action lawsuit from Alameda Superior Court to the United States District Court for the Northern District of California. Dkt. No. 1. On April 23, 2019, Plaintiff filed a Complaint for Penalties Pursuant to Labor Code § 2699, et seq. under California’s Private Attorneys General Act of 2004 (“PAGA”) in Alameda County Superior Court. Mot. at 2. On May 23, 2019, Defendant removed the PAGA action from Alameda Superior Court to United States District Court. Id. at 3. On May 21, 2019, Plaintiff filed a Motion for Remand in the Class Action. Id. On June 17, 2019, Plaintiff filed a Motion for Remand in the PAGA Action. Id. On November 8, 2019, the Court denied Plaintiff’s motions for remand. Dkt. No. 29. On January 15, 2020, the Court granted the parties’ stipulation to consolidate the class action and PAGA action. Dkt. No. 46. On August 24, 2020, the parties completed mediation with wage-and-hour mediator Mark C. Peters. Mot. at 3. After a full day of negotiations based on the documents and information exchanged, the parties agreed in principle to the terms governing the settlement of this action and all of Plaintiff’s class and representative claims in it. Id. The parties then began working on completing their long form Settlement Agreement, which they presented to the Court for preliminary approval. Id. On November 5, 2020, Plaintiff filed a Motion for Preliminary Approval of the parties’ settlement. Dkt. No. 52. On January 21, 2021, the parties’ counsel appeared for the preliminary approval hearing. 58. On February 8, 2021, the Claims Administrator received the class data file from Defendant Counsel. Mot. at 3. On April 14, 2021, the Claims Administrator mailed the Class Notice, via U.S. First Class Mail, to 81 class members. Id. On April 14, 2021, the deadline to object or opt out of the Settlement passed. Id. On March 15, 2021, Plaintiff filed a motion for Award of Attorneys’ Fees and Costs and Class Representative Enhancement. Dkt. No. 61. On April 29, 2021, Plaintiff file a motion for final approval of class settlement. Dkt. No. 62. B. Settlement Agreement Following extensive formal discovery and with the assistance of a mediator, the parties entered into a settlement agreement on October 7, 2020. Dkt. No. 62-2 (“SA”). The key terms are as follows: i. Value of the Settlement to the Class Defendant has agreed to pay a Gross Settlement Amount of $125,000.00. SA, § I. The individual settlement amount to the approximately 81 Class Members will pay them a total of around $59,584.22, (i.e., $125,000.00 minus the proposed Class Representative service enhancement award ($5,000.00), the proposed Class Counsel Award (up to $41,666.67), reasonable anticipated litigated costs/expenses ($10,000.00), the anticipated Settlement Administration Costs ($4,999.11), and the PAGA Payment ($5,000.00)), with an average payment of approximately $735.61 per employee. Mot. at 4; Dkt. No. 62-5 ¶ 13. ii. Size of the Class and the Class Definition For purposes of the Settlement, the Parties requested that the Court conditionally certify the proposed Settlement Class, which includes all current and former non-exempt employees of E- 3 Systems during the Class Period of February 13, 2015 to October 23, 2020. Dkt. No. 52 at 9; SA § 1. Defendant estimated during the mediation that the class includes approximately 81 Settlement Class Members. Dkt. No. 52 at 9. iii. Nature of the Payments and Notice, Exclusion, Objection Periods will receive an individual settlement payment. Id. at 10. The notice procedure provided that Class Members shall have 45 calendar days from the date of mailing of the Settlement Documents to return a valid request for exclusion from the Settlement (the “Opt-Outs”) to the Settlement Administrator. Id. Settlement Class members who wish to submit Opt-Outs and be excluded from the Settlement Class must submit a written Opt- Out. Id. Class Members who do not return timely and valid Opt-Outs from the Settlement shall be bound by the terms of the Settlement. Id. Those Settlement Class Members who do not submit Opt-Outs will receive their individual settlement amount from the Net Fund Value pursuant to the Settlement as calculated by the Settlement Administrator. Id. Only those Settlement Class members who do not submit Opt-Outs may object to the Settlement, which also includes a request for attorney’ fees and costs. Id. All objections must be postmarked no later than 45 calendar days after the mailing of the Class Notice. Id. iv. The Released Claims and Released Parties The “Released Claims” are defined as:

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In re E-3 Systems Litigation, (N.D. Cal. 2021).

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