Jones v. TireHub, LLC

District Court, E.D. California·Decided May 13, 2024·No. 2:21-cv-00564·Unknown

Opinion

DONSHEA JONES, individually and on No. 2:21-cv-0564 DB behalf of all others similarly situated, Plaintiff, ORDER v. Defendant. Each of the parties in the above-captioned case has consented to proceed before a United States Magistrate Judge. See U.S.C. § 636(c). Accordingly, this matter has been reassigned to the undersigned for all purposes. (ECF No. 61.) This action came before the court on November 17, 2023, for hearing of plaintiff’s unopposed motion for final approval of class action settlement and class member Reynaud Lozada’s amended motion for exclusion. (ECF No. 89.) Attorney Laura Van Note appeared via Zoom on behalf of the plaintiff. Attorney Penny Chen appeared via Zoom on behalf of defendant. And attorney Eugene Lee appeared on behalf of class member Reynaud Lozada. Upon consideration of the arguments on file and those made at the hearing, and for the reasons set forth on the record at that hearing and below, the court will grant both motions as articulated below. Plaintiff commenced this action on February 10, 2021, by filing a complaint in the Solano County Superior Court. (ECF No. 1-3 at 6.1) The matter was removed to this court on March 26, 2021, pursuant to the Class Action Fairness Act of 2005. (ECF No. 1 at 2.) Plaintiff is proceeding on a second amended complaint filed on August 16, 2021. (ECF No. 22.) The second amended complaint alleged the following claims against defendant Tirehub, LLC: (1) failure to pay wages; (2) failure to provide meal and rest periods; (3) failure to provide accurate itemized wage statements; (4) failure to pay wages on termination; (5) unfair business practices based on the foregoing; and (9) California’s Private Attorneys General Act (“PAGA”). (Id. at 12-22.) Defendant filed an answer on September 7, 2021. (ECF No. 25.) On February 2, 2023, plaintiff filed a motion for preliminary approval of a class action settlement. (ECF No. 55.) Defendant did not file a statement of opposition. On May 26, 2023, the court granted plaintiff’s motion for preliminary approval. (ECF No. 65.) The order certified a class of 458 employees consisting of: Plaintiff and all persons employed by Defendant as non-exempt employees on or after February 10, 2017, to the date of this order, excluding any individual who opts out of the settlement. (Id. at 10.) The terms of the settlement provided that defendant would pay a gross settlement amount of $550,000 to resolve the claims of class members who do not opt out. (Id. at 6.) The following deductions would be subtracted from the gross settlement amount2: • $40,000 PAGA payment pursuant to California Labor Code § 2698 et seq., distributed 75% to the California Labor and Workforce Development Agency and 25% to Net Settlement Fund. ////

1 Page number citations such as this one are to the page number reflected on the court’s CM/ECF system and not to page numbers assigned by the parties.

2 Defendant’s share of the payroll taxes will be paid separately from the Gross Settlement Fund and Settlement Class Members settlement shares will be allocated as 20% wages and 80% interest for tax purposes. (ECF No. 55 at 18.) • Administrative Expenses not to exceed $9,370. • Employee’s Taxes and Required Withholdings including federal, state, or local payroll taxes. • Class Attorney Fees of 33.5% of the gross settlement, ($183,315.00) and Expenses not to exceed $10,000. • Incentive Award to plaintiff of up to $5,000. (Id. at 6-7.) Each class participant would receive a pro rata share of the net settlement amount based on the number of Compensable Workweeks worked during the Settlement period divided by the total number of Compensable Workweeks worked by all Settlement Class Members during the period. (Id. at 7.) Class participants would be given 180 days to cash their settlement checks. (Id.) Class participants had until July 20, 2023, to mail written requests to opt out. (ECF No. 76-2 at 9.) If more than 5% of class members opted-out of the settlement, defendant could withdraw from the settlement. (ECF No. 65 at 7.) CPT Group, Inc., would be responsible for the administration of the settlement. (Id.) The court also advised the parties with respect to “concerns going forward,” requesting sufficient briefing with respect to attorneys’ fees, plaintiff’s incentive award, discovery conducted, notice, and enforcement. (Id. at 8-9.) On September 8, 2023, plaintiff filed the pending motion for final approval of the class action settlement. (ECF No. 73.) On October 10, 2023, class member Reynaud Lozada filed a motion for exclusion and an amended motion for exclusion. (ECF Nos. 75 & 76.) The matter came for hearing before the court on November 17, 2023. (ECF No. 89.) Apart from the amended motion for exclusion filed by Reynaud Lozada, no one appeared at the November 17, 2023 hearing to oppose approval of the class action settlement nor has any written opposition been filed. The settlement of class actions is supported by strong judicial policy. Class Plaintiffs v. City of Seattle, 955 F.2d 1268, 1276 (9th Cir. 1992). However, “[t]o guard against th[e] potential for class action abuse, Rule 23(e) of the Federal Rules of Civil Procedure requires court approval of all class action settlements, which may be granted only after a fairness hearing and a determination that the settlement taken as a whole is fair, reasonable, and adequate.” In re Bluetooth Headset Products Liability Litigation, 654 F.3d 935, 946 (9th Cir. 2011). “It is the settlement taken as a whole, rather than the individual component parts, that must be examined for overall fairness.” Hanlon v. Chrysler Corp., 150 F.3d 1011, 1026 (9th Cir. 1998) (citing Officers for Justice v. Civil Serv. Comm’n of San Francisco, 688 F.2d 615, 628 (9th Cir. 1982)). “Where, as here, the parties reach a settlement before class certification, the district court must apply a ‘higher standard of fairness.’” Cotter v. Lyft, Inc., 176 F.Supp.3d 930, 935 (N.D. Cal. 2016) (quoting Hanlon, 150 F.3d at 1026). In this context, “‘courts must peruse the proposed compromise to ratify both the propriety of the certification and the fairness of the settlement.’” In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, 895 F.3d 597, 606 (9th Cir. 2018) (quoting Staton v. Boeing Co., 327 F.3d 938, 952 (9th Cir. 2003)). “The factors and warning signs identified in Hanlon, Staton, In re Bluetooth, and other cases are useful, but in the end are just guideposts.” Id. at 611. “District courts have interpreted Rule 23(e) to require a two-step process for the approval of class action settlements: ‘the Court first determines whether a proposed class action settlement deserves preliminary approval and then, after notice is given to class members, whether final approval is warranted.’” In re High-Tech Emp. Antitrust Litig., No. 11-cv-02509-LHK, 2014 WL 3917126, at *3 (N.D. Cal. Aug. 8, 2014) (quoting Nat’l Rural Telecomms. Coop. v. DIRECTV, Inc., 221 F.R.D. 523, 525 (C.D. Cal. 2004)). “At the final approval stage, the primary inquiry is whether the proposed settlement is ‘fair, adequate, and free from collusion.’” Carlin v. DairyAmerica, Inc., 380 F.Supp.3d 998, 1008-09 (E.D. Cal. 2019) (quoting Lane v. Facebook, Inc., 696 F.3d 811, 819 (9th Cir. 2012)). Although the assessment “will naturally vary from case to case,” courts usually weigh: (1) the strength of the plaintiff’s case; (2) the risk, expense, complexity, and likely duration of further litigation; (3) the risk of maintaining class action status throughout the trial; (4) the amount offered in settle

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Jones v. TireHub, LLC, (E.D. Cal. 2024).

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