Lusk v. Five Guys Enterprises LLC

CourtDistrict Court, E.D. California
DecidedJanuary 24, 2022
Docket1:17-cv-00762
StatusUnknown

This text of Lusk v. Five Guys Enterprises LLC (Lusk v. Five Guys Enterprises LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lusk v. Five Guys Enterprises LLC, (E.D. Cal. 2022).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 EASTERN DISTRICT OF CALIFORNIA 6 7 JEREMY R. LUSK, CASE NO. 1:17-cv-00762-AWI-EPG

8 Plaintiff, ORDER ON PLAINTIFF’S THIRD- 9 v. AMENDED MOTION FOR PRELIMINARY APPROVAL 10 FIVE GUYS ENTERPRISES LLC; AND ENCORE FGBF, LLC, 11 (Doc. No. 75) Defendants. 12

13 14 In this class action lawsuit, Jeremy Lusk is suing Five Guys Enterprises LLC and Encore 15 FGBF, LLC, on grounds that they violated federal and California credit/consumer reporting laws, 16 California wage-and-hour laws, and California unfair competition law. Although the parties have 17 reached a proposed class settlement, the Court has denied Lusk’s first three motions under Federal 18 Rule of Civil Procedure 23(e) for preliminary approval of the settlement and conditional 19 certification of the putative class. Lusk now moves a fourth time for such relief. For the reasons 20 discussed below, the Court will deny this motion. 21 22 BACKGROUND 23 Lusk filed his lawsuit in state court on May 2, 2017, and Defendants removed the action. 24 Thereafter, Lusk filed a first-amended complaint, wherein he pleaded the following twelve class 25 claims: (1) failure to make a proper disclosure, in violation of the federal Fair Credit Reporting 26 Act, 15 U.S.C. § 1681b(b)(2)(A); (2) failure to provide a proper summary of rights, in violation of 27 the Fair Credit Reporting Act, 15 U.S.C. §§ 1681d(a)(1) and 1681g(c); (3) failure to make a 28 proper disclosure, in violation of California’s Investigative Consumer Reporting Agencies Act, 1 Cal. Civ. Code § 1786.16(a)(2)(B); (4) failure to make a proper disclosure, in violation of 2 California’s Consumer Credit Reporting Agencies Act, Cal. Civ. Code § 1785.20.5(a); (5) failure 3 to provide meal periods or compensation in lieu thereof, in violation of Cal. Labor Code §§ 226.7, 4 512, and 1198, and California Industrial Welfare Commission Wage Order 5-2001 (“Wage Order 5 5”); (6) failure to provide rest periods or compensation in lieu thereof, in violation of Cal. Labor 6 Code §§ 226.7 and 1198, and Wage Order 5; (7) failure to pay earned wages, including overtime 7 wages, in violation of Cal. Labor Code §§ 204, 223, 510, 1194, 1197, and 1198, and Wage Order 8 5; (8) failure to reimburse for necessary gas and mileage expenditures, in violation of Cal. Labor 9 Code § 2802(a); (9) failure to provide accurate itemized wage statements, in violation of Cal. 10 Labor Code § 226; (10) failure to pay separation wages, in violation of Cal. Labor Code §§ 201– 11 203; (11) violations of California’s unfair competition law (“UCL”), Cal. Bus. & Prof. Code 12 § 17200 et seq.; and (12) entitlement to civil penalties under California’s Private Attorney General 13 Act (“PAGA”), Cal. Lab. Code § 2698 et seq. Doc. No. 13 (“FAC”). 14 After conducting some discovery, the parties participated in mediation and reached a 15 proposed agreement for a class-wide settlement. Doc. No. 29. Lusk has since moved three times 16 for preliminarily approval of that proposal and conditional certification of the putative class, with 17 the Court denying each motion. Doc. Nos. 36, 43, 52, 55, 61, 66. Lusk now moves for the same 18 relief for a fourth time. Doc. No. 75 (“Motion”).1 With his latest motion, Lusk submits a 19 supporting declaration from counsel, which itself comes with attached copies of the proposed class 20 settlement, class notice, and class member claim form. Doc. No. 76 (“Setareh Decl.”); Doc. No. 21 76-1.2 For the first time, Defendants have submitted a statement of non-opposition and 22 supplemental briefing on Lusk’s motion, along with a declaration from counsel. Doc. No. 78; 23 Doc. No. 78-1 (“Woo Decl.”). 24 25

26 1 In this order, citations to specific page numbers of Document No. 75 will refer to the pdf pagination of that document, and not the pagination used in the motion itself. 27 2 The settlement, class notice, and claim form are all found at the same docket number. Doc. No. 76-1 at 1–25 28 (“Proposed Settlement”); 27–32 (“Settlement Notice”); 34–35 (“Claim Form”). Lusk has also separately submitted a 1 LEGAL STANDARD 2 Federal Rule of Civil Procedure 23(e) requires judicial review and approval of any class 3 settlement. This process generally involves three stages. In the first, the parties move for 4 “preliminary approval” of the proposed settlement and, if necessary, “conditional certification” of 5 the class. 4 William B. Rubenstein, Newberg on Class Actions § 13:16 (5th ed.). If the court 6 grants this threshold relief, the second and third stages require (1) the provision of notice to the 7 class members, along with an opportunity for them to object to or opt out of the proposed 8 settlement, and (2) a “final approval” determination (and actual class certification, if necessary) 9 following a fairness hearing. Id. 10 To secure preliminary approval and condition certification, the parties must provide 11 sufficient information for the court to determine that it “will likely be able to” grant final approval 12 of the settlement under Rule 23(e)(2) and certify the class for a judgment on the settlement. Fed. 13 R. Civ. P. 23(e)(1)(B). As to the first determination, Rule 23(e)(2) states that a binding class 14 settlement may be approved only on finding that it is “fair, reasonable, and adequate.” Fed. R. 15 Civ. P. 23(e)(2). As to the second determination, a class may be certified if it meets the four 16 prerequisites under Rule 23(a) and at least one of the three categories of class actions under Rule 17 23(b). Fed. R. Civ. P. 23(a)–(b). 18 The court’s role in the class settlement process is an important one, as “the parties that are 19 present and settling the case—class counsel, the class representatives, and the defendants—are 20 proposing to compromise the rights of absent class members.” Newberg on Class Actions 21 § 13:40. To ensure the interests of the absent class members are properly safeguarded, the “judge 22 must adopt the role of a skeptical client and critically examine the class certification elements, the 23 proposed settlement terms, and procedures for implementation.” Id. (quoting Manual for Complex 24 Litigation § 21.61 (4th ed.)). 25 26 DISCUSSION 27 The Court will deny Lusk’s latest motion because, once again, he has not provided 28 sufficient information showing that the proposed settlement is likely to be approved as “fair, 1 reasonable, and adequate” upon certification of the class under Rule 23. 2 3 A. Preliminary Approval 4 As noted above, at the preliminary approval stage, the court need only determine that the 5 proposed settlement is “likely” to be finally approved under Rule 23(e)(2). Rule 23(e)(2) itself 6 provides that a court may approve a class-binding settlement only on finding that the settlement is 7 “fair, reasonable, and adequate.” Fed. R. Civ. P. 23(e)(2).

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Lusk v. Five Guys Enterprises LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lusk-v-five-guys-enterprises-llc-caed-2022.