Jesus Mendoza and Cesar De La Rosa, individually, and on behalf of all others similarly situated v. Masonite Corporation

Opinion

111 Kane Moon (SBN 249834) JJ SS -- 66 Allen Feghali (SBN 301080) 222 Enzo Nabiev (SBN 332118) Sohyun Oh (SBN 341157) 1055 W. Seventh St., Suite 1880 444 Los Angeles, California 90017 Telephone: (213) 232-3128 555 Facsimile: (213) 232-3125 E-mail: kane.moon@moonyanglaw.com 666 E-mail: allen.feghali@moonyanglaw.com E-mail: enzo.nabiev@moonyanglaw.com 777 E-mail: julie.oh@moonyanglaw.com 888 Attorneys for Plaintiffs Jesus Mendoza and Cesar De La Rosa 999 111000 UNITED STATES DISTRICT COURT 111111 CENTRAL DISTRICT OF CALIFORNIA 111222 111333 JESUS MENDOZA and CESAR DE LA Case No.: 5:21-cv-00025-SSS-KKx ROSA, individually, and on behalf of all 111444 others similarly situated, [Assigned to Hon. Sunshine S. Sykes] 111555 Plaintiffs, ORDER AND JUDGMENT [Dkts. 49 & 50]: 111666 vs. 1. CERTIFYING SETTLEMENT 111777 MASONITE CORPORATION, a CLASS; Delaware corporation; and 2. FINALLY APPROVING 111888 DOES 1 through 10, inclusive, PROPOSED SETTLEMENT; 3. AWARDING FEES AND COSTS 111999 Defendants. TO CLASS COUNSEL; 4. AWARDING SERVICE 222000 PAYMENTS TO PLAINTIFFS; AND, 222111 5. DIRECTING ENTRY OF JUDGMENT 222222 222333 Date: July 28, 2023 Time: 2:00 p.m. 222444 Action Filed: November 17, 2020

222555 222666 222777 222888 1 TO ALL PARTIES AND THEIR COUNSEL OF RECORD: 2 Plaintiffs JESUS MENDOZA and CESAR DE LA ROSA (‘Plaintiffs’) and 3 Defendant Masonite Corporation (“Defendant” or “Masonite’’) have reached terms of 4 settlement for a putative class and Private Attorneys General Act (“PAGA”’) representative 5 action. 6 Plaintiffs have filed a motion for final approval of a class and representative action 7 settlement of the claims asserted against Defendant in this action, memorialized in the 8 Joint Stipulation of Class Action and PAGA Settlement and Release (“Settlement”) (see, 9 Declaration of Kane Moon in Support of Plaintiffs’ Motions for (1) Final Approval of 10 Class Action Settlement and (2) Award for Attorneys’ Fees and Costs, and Service 11 Awards to Plaintiffs [“Moon Decl.”], at Exh. 1) with attached Exhibits, including the 12 proposed form of Notice. In addition, Plaintiffs concurrently filed a motion for an award 13 of fees, costs, and class representative enhancement awards, which was considered in 14 conjunction with the motion for final approval. 15 The Settlement between Plaintiffs and Defendant (together, “the Parties”) provides 16 that the Parties stipulate to certification of a Class for settlement purposes only. The 17 Settlement is conditioned upon, among other things, the Court’s approval. Capitalized 18 terms in this Order shall have the same meaning as in the Settlement unless indicated 19 otherwise. A summary of the terms of the Settlement is as follows: 20 e Defendant stipulates to certification of a Settlement Class, to include all Class 21 Members, for purposes of Settlement only. (Settlement, 4 78.) 22 e The Class is: All persons who worked for Masonite in California as an hourly- 23 paid, non-exempt employees during the Class Period (the “Class Period” is July 24 14, 2017, through April 12, 2023). (Settlement, {[§| 5-6.) Excluded from the 25 Settlement Class are Class Members that timely submit valid Requests for 26 Exclusion. (Settlement, 4] 5.) 27 e Defendant agrees that $635,000.00, known as the “Gross Settlement 28 Amount,” plus the employer’s share of any payroll taxes related to the

1 settlement payments, represents the maximum amount that it will pay out 2 under the Settlement (Settlement, { 13), inclusive of the following: (a) 3 settlement payments to Class Members who do not validly opt out 4 (Settlement, {| 14); (b) the maximum gross amount for Class Counsels’ 5 attorneys’ fees of $211,645.50 (Settlement, 4 3); (c) the maximum gross 6 amount for all of Class Counsels’ litigation costs and associated expenses, 7 which shall not exceed $18,000.00 (Settlement, 4 3); (d) the anticipated gross 8 amount for claims administration costs, estimated not to exceed $12,000.00 9 (Settlement, §] 29); (ec) the Class Representative Enhancement Payments to be 10 made to Plaintiffs, which is a maximum of $5,000.00 each ($10,000.00 total) 11 (Settlement, § 7); (f) the maximum gross amount for payment to the 12 California Labor Workforce Development Agency (“LWDA”’) as part of the 13 consideration for the release of all Released Claims under PAGA, which is 14 $45,000.00 (75% of $60,000 allocated to PAGA) (Settlement, § 38(a)). 15 e The Settlement is a non-reversionary settlement. (Settlement, {| 39.) 16 e Each Class Member who did not opt out will be paid their share of the 17 settlement, subject to certain taxes and withholdings. (Settlement, § 42.) 18 e Class Counsel will not seek an amount greater than $211,645.50 for attorneys’ 19 fees. (Settlement, {] 3.) 20 e Class Counsel will not seek an amount greater than $18,000.00 for litigation 21 costs. (Settlement, { 3.) 22 e The Class Representative service payments requested will be $5,000.00 to 23 each ($10,000.00 total). (Settlement, § 7.) 24 e IfaClass Member has not cashed his or her check(s) within 180 days of 25 issuance, the funds representing the “uncashed checks” shall be transmitted by 26 the Administrator to the California State Controller’s Office for Unclaimed 27 Property in the name of each Class Member who failed to cash their 28 Settlement Payment check prior to the void date. (Settlement, {] 53.)

111 After reviewing the Settlement, the proposed Class Notice, and other related 222 documents, and having heard the argument of Counsel for respective Parties, if any, IT IS 333 HEREBY ORDERED AS FOLLOWS: 444 1. The Court finds that the proposed class satisfies the requirements of a 555 settlement class under Rule 23 of the Federal Rules of Civil Procedure. For purposes of 666 settlement, the requirements of Rule 23(a) are satisfied because the proposed Class is so 777 numerous that joinder of all Class Members is impracticable, there are questions of law 888 or fact common to the Class, the claims of Plaintiffs are typical of the claims of the 999 Class; and Plaintiffs will fairly and adequately protect the interests of the Class. The 111000 requirements of Rule 23(b) are satisfied because questions of law or fact common to 111111 Class Members predominate over any questions affecting only individual Class 111222 Members. 111333 2. The Parties’ settlement appears to have been made and entered into in 111444 good faith and is hereby finally approved as fair, adequate, and reasonable, subject to 111555 the limitations on the requested fees and payments as set forth below. 111666 3. The Court further finds that the settlement of Plaintiffs’ PAGA claim is fair 111777 and reasonable, and finally approves the Settlement and release of that claim and the 111888 payment to the LWDA in the amount of $45,000.00. Plaintiffs have provided evidence 111999 that the LWDA received notice of the proposed settlement in the manner required by the 222000 LWDA. 222111 4. The following persons are certified as Class Members solely for the 222222 purpose of entering a settlement in this matter: 222333 All persons who worked for Masonite in California as an hourly-paid, non- 222444 exempt employees at any time from July 14, 2017, through April 12, 2023. 222555 Participating Class Members are those Class Members who did not timely request 222666 exclusion from the Settlement. Based on the Declaration of Stephen Gomez on behalf of 222777 Simpluris Class Action Settlement Administration, only two Class Members, Fredy W. 222888 Quezada and Clarito Dafalia, submitted a valid and timely Request for Exclusion pursuant 111 to the Settlement. 222 5. The distribution of the Notice Packet directed to the Class Members as set 333 forth in the Settlement and the Court’s directions has been completed in conformity 444 with the Preliminary Approval Order. The Notice Packet provided due and adequate 555 notice of the proceedings and of the matters set forth therein, including the proposed 666 settlement terms as set forth in the Settlement, to all persons entitled to such Notice. 777 The Notice fully satisfied the requirements of due process, having been sent to all Class 888 Members who could be identified through reasonable effort, and was the best notice 999 practicable under the circumstances. The Notice fully and accurately informed Class 111000 Members of all material elements of the proposed settlement and their opportunity to 111111 exclude themselves from, or object to, the Settlement. 111222 6. By filing the motion for an award of attorneys’ fees, costs, and service 111333 payment awards, and by also permitting Class Members to object to those amounts 111444 through to the hearing of the motion of final approval, Plaintiffs have satisfied the notice 111555 and opportunity to respond requirements of In re Mercury Interactive, 816 F.3d 988 111666 (9th Cir. 2010). 111777 7. Plaintiffs Jesus Mendoza and Cesar De La Rosa are confirmed as the 111888 Class Representatives for settlement purposes. Moon & Yang, APC is confirmed as 111999 Class Counsel. 222000 8. Simpluris Class Action Settlement Administration (“Simpluris”) is 222111 confirmed as the Settlement Administrator, pursuant to the terms set forth in the 222222 Settlement. The Court hereby directs payment to the Administrator, Simpluris, for fees 222333 and expenses, in the amount of $11,857.00, to be paid pursuant to the Settlement’s 222444 terms for such distribution. The Court finds that the Settlement Administrator has thus 222555 far fully discharged its obligations as Settlement Administrator under the terms of the 222666 Settlement, and the Settlement Administrator is directed to complete the administration 222777 as set forth in the Settlement. 222888 111 9. The proposed payment of $45,000.00 in civil penalties under the Labor 222 Code Private Attorneys General Act of 2004 (Labor Code § 2698 et seq.) to the Labor 333 and Workforce Development Agency is approved. The Court finds that the substantial 444 risks identified in this matter could result in very substantial reductions in discretionary 555 penalties, if any were recovered. The Court approves the Settlement and release of the 666 PAGA claim. 777 10. The Court hereby awards Class Counsel, Moon & Yang, APC, 888 $211,645.50 in attorney’s fees and $15,625.40 in costs. 999 11. The Court hereby awards Class Representative Enhancement Payments of 111000 $5,000.00 each to Plaintiffs Jesus Mendoza and Cesar De La Rosa (for a total of 111111 $10,000.00), to be paid in accordance with the terms of the Settlement. The Court finds 111222 that this amount is fair and reasonable in light of Plaintiffs’ contributions to this 111333 litigation, and this amount is unopposed. 111444 12. The Court directs payment to all Class Members pursuant to the terms of 111555 the Settlement. 111666 13. The Court orders that a Qualified Settlement Fund, as defined in Treasury 111777 Regulations Section 1.468B-1, or other applicable law, shall be established to effectuate 111888 the terms of the Settlement and the orders of the Court. 111999 14. Defendant shall pay a total of $635,000.00 to resolve this litigation. 222000 Defendant will fund the Gross Settlement Amount into a Qualified Settlement Fund 222111 account within twenty (20) calendar days of the Effective Date, as defined in the 222222 Settlement. Within fifteen (15) calendar days of the receipt of the funding, the Settlement 222333 Administrator shall issue settlement payments to Class Members. 222444 15. Class Members were given a full opportunity to participate in the Final 222555 Approval Hearing, and all Class Members and other persons wishing to be heard have 222666 been heard. As of the date of this Order and Judgment, six Class Member have objected to 222777 the Settlement. Participating Class Members who did not timely object to the settlement 222888 set forth in the Settlement are barred from prosecuting or pursuing any appeal of the Final 111 Approval Order and Judgment. 222 16. Upon the final approval by the Court of this Settlement and Defendant's 333 payment of all sums due pursuant to this Settlement, and except as to such rights or claims 444 as may be created by the Settlement, the Class Representatives, the Class and each Class 555 Member who has not submitted a valid and timely request for exclusion as to claims other 666 than the PAGA claim, will release claims as follows: 777 Released Parties. “Released Parties” means Masonite, and its past 888 and present officers, directors, employees, and agents. 999 Released Claims. “Released Claims” means, all claims, rights, 111000 demands, liabilities and causes of action, whether in law or equity, arising 111111 from the same facts and/or claims alleged in the Original Complaint, 111222 PAGA Complaint and First Amended Complaint, or related to claims that 111333 were pled or could have been pled based on the facts alleged in the 111444 Complaint and in pending PAGA Letters submitted to LWDA by Putative 111555 Class Members and/or Class Counsel, including claims for wages, 111666 restitution, statutory and civil penalties, interest, fees, and costs, and claims 111777 arising from California’s Private Attorneys General Act, based on the 111888 following categories of claims and allegations: (1) failure to pay minimum 111999 and regular rate wages; (2) failure to pay overtime compensation; (3) 222000 failure to provide meal periods; (4) failure to authorize and permit rest 222111 breaks; (5) failure to timely pay final wages at termination; (6) failure to 222222 provide accurate itemized wage statements; (7) failure to timely pay all 222333 wages during employment; (8) failure to reimburse business expenses; (9) 222444 failure to maintain accurate records of hours worked; (10) failure to 222555 maintain accurate records of meal breaks; (11) unfair business practices in 222666 violation of California Business and Professions Code sections 17200, et 222777 seq., including incorporated or related claims based on alleged violations 222888 of California Labor Code sections 201, 202, 203, 204, 210, 226, 226.7, 111 510, 512, 551, 552, 1174, 1174.5, 1194, 1197, 1197.1, 1198, 2800 and 222 2802 et seq.; and (12) civil penalties under the Private Attorneys General 333 Act (California Labor Code sections 2698 et seq., including incorporated 444 or related claims based on alleged violations of California Labor Code 555 sections 201, 202, 203, 204, 210, 226, 226.7, 510, 512, 551, 552, 1174, 666 1174.5, 1194, 1197, 1197.1, 1198, 2800 and 2802 et seq. 777 PAGA Settlement and Release. The Parties acknowledge and 888 agree that for purposes of the PAGA and Judgment, all Putative Class 999 Members were allegedly aggrieved in the same manner pursuant to Labor 111000 Code § 2698, et. seq., in that each Putative Class Member allegedly 111111 suffered at least one of the alleged Labor Code violations asserted in the 111222 Complaint for which the PAGA provides an available remedy. The Parties 111333 also acknowledge and agree that, by law, non-party employees have no 111444 right to opt out of, or object to, the settlement of PAGA claims, that the 111555 settlement of PAGA claims is subject to Court approval, and a judgment 111666 with respect to PAGA claims is binding with respect to non-party 111777 employees upon Court approval, pursuant to California Labor Code 111888 section 2699(l), Arias v. Superior Ct. (Dairy), 46 Cal. 4th 969, and 111999 Cardenas v. McLane Foodservice, Inc., 2011 WL 379413 at *3 (C.D. Cal. 222000 Jan. 31, 2011). As such, irrespective of whether a Putative Class Member 222111 submits a Request for Exclusion, upon approval of the Settlement, all 222222 Putative Class Members will be issued payment for PAGA penalties as 222333 provided herein, and upon the Effective Date, shall be deemed to have 222444 released the Released Claims arising under PAGA, as set forth in 222555 Paragraph 23. 222666 Release of Additional Claims and Rights by Plaintiffs. Upon 222777 payment of all funds due hereunder and the occurrence of the Effective 222888 Date, as a condition of receiving any portion of their Class Representative 111 Enhancement Payment, Plaintiffs will agree to the additional following 222 General Release: In consideration of Defendant’s promises and 333 agreements as set forth herein, each Plaintiff hereby fully releases the 444 Released Parties from any and all Released Claims and also generally 555 releases and discharges the Released Parties from any and all claims, 666 demands, obligations, causes of action, rights, or liabilities of any kind 777 which have been or could have been asserted against the Released Parties 888 arising out of or relating to Plaintiffs’ employment by Defendant or 999 termination thereof, including but not limited to claims for wages, 111000 restitution, penalties, retaliation, or wrongful termination of employment, 111111 and including any other claims whatsoever, including any interest thereon, 111222 including claims based on alleged discrimination on the basis of sex, race, 111333 national origin, ancestry, age, religion, disability, handicap, and/or veteran 111444 status, and/or any other state or federal or common law, statutory, or other 111555 claims arising out of or relating to Plaintiffs’ employment by Defendant. 111666 This release specifically includes any and all claims, demands, obligations 111777 and/or causes of action for damages, restitution, penalties, interest, and 111888 attorneys’ fees and costs (except provided by the Agreement) relating to or 111999 in any way connected with the matters referred to herein, whether or not 222000 known or suspected to exist, and whether or not specifically or particularly 222111 described herein. Thus, Plaintiffs expressly waive any right or claim or 222222 right to assert hereafter that any claim, demand, obligation, and/or cause of 222333 action has, through ignorance, oversight, or error, been omitted from the 222444 terms of this Settlement Agreement. Specifically, Plaintiffs waive all rights 222555 and benefits afforded by California Civil Code Section 1542, which 222666 provides: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS 222777 WHICH THE CREDITOR OR RELEASING PARTY DOES NOT 222888 KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE 333 SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY. The 444 release of claims set forth in this paragraph does not include claims for 555 workers’ compensation benefits or any of claims that may not be released 666 by law. 777 Effective Date. “Effective Date” means the later of (a) if no appeal 888 is filed, the date that is twenty (20) days after the date of entry of Order 999 granting final approval of the Settlement, or (b) if an appeal is filed, the 111000 date on which any reviewing court issues a decision, the time for further 111111 appeal has expired, and the trial court has regained jurisdiction. 111222 17. The Court directs that the Clerk of the Court enter the Court’s Order as a 111333 Final Judgment. Plaintiffs and Class Members shall take nothing from Defendant except 111444 as set forth in the Settlement and this Final Approval Order and Judgment. 111555 18. Neither this Order, the Settlement, nor any related statements or proceedings 111666 shall be construed or deemed an admission of liability, culpability, damage or wrongdoing 111777 on the part of Defendant, or of the appropriateness of certification of the Class other than 111888 for settlement purposes. 111999 19. In the event the Judgment is overturned, reversed, not affirmed in its entirety, 222000 or never becomes final, the Effective Date does not occur, or the Settlement is nullified or 222111 modified for any reason, Defendant does not waive any and all rights, including its right to 222222 oppose class certification. The Settlement is a settlement document and shall be 222333 inadmissible in evidence in any proceeding, except an action or proceeding to approve, 222444 interpret, or enforce the Settlement. 222555 20. The Court orders that, without affecting the finality of the Final Approval 222666 Order and Judgment, it reserves continuing jurisdiction over the parties for the purposes of 222777 implementing, enforcing and/or administering the Settlement or enforcing the terms of the 222888 Judgment. 1 21. ~~ Plaintiffs’ Motion for Final Approval of Class and PAGA Action Settlement 2 and Plaintiffs’ Motion for an Award of Attorneys’ Fees and Costs, and Enhancement 3 Awards to Plaintiffs are hereby granted, and the Court directs that Judgment shall be 4 entered in accordance with the terms of this Order. 5 22. The Court sets a Non-Appearance Hearing (Case Review) Re: Distribution 6 on May 10, 2024, 2024 at 2:00 p.m., via Zoom video conference. Class Counsel is 7 ordered to file a final report and declaration regarding distribution no later than May 3, 8 2024.

11 Dated: Hon. Sunshine. Sykes 12 UNITED STATES DISTRICT JUDGE 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28