Maciel v. Bar 20 Dairy, LLC

District Court, E.D. California·Decided October 14, 2020·No. 1:17-cv-00902·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 JOSE MACIEL and ELVIS BONILLA, No. 1:17-cv-00902-DAD-SKO on behalf of themselves and all others 12 similarly situated, and as “aggrieved employees” on behalf of other “aggrieved 13 employees” under the Private Attorneys ORDER GRANTING PLAINTIFFS’ MOTION General Act of 2004, FOR PRELIMINARY APPROVAL OF 14 CLASS ACTION SETTLEMENT Plaintiffs, 15 (Doc. No. 54) v. 16 BAR 20 DAIRY, LLC, a California 17 limited liability company; and DOES 1 through 50, inclusive, 18 Defendants. 19

20 21 INTRODUCTION 22 On August 28, 2020, the court conditionally granted plaintiffs’ second motion for 23 preliminary approval of class action settlement. (Doc. Nos. 54, 60.) Therein, the court directed 24 the parties to submit to the court a revised settlement reflecting the changes directed within thirty 25 days. (Doc. No. 60 at 34.) On September 28, 2020, attorney Kelsey M. Szamet submitted a 26 declaration in response to the court’s order issued on August 28, 2020. (Doc. No. 61.) Attached 27 to the Szamet Declaration is the parties’ Fifth Amended Settlement Agreement (Doc. No. 62-1 28 (“the Settlement”)), as well as other exhibits demonstrating the parties’ incorporation of the 1 changes in the proposed settlement as directed by the court’s order conditionally granting 2 plaintiffs’ motion (see Doc. Nos. 61-2–61-8). For the reasons set forth below, the court will now 3 fully grant plaintiffs’ motion for preliminary approval of class action settlement. 4 BACKGROUND 5 Defendant Bar 20 Dairy, LLC (hereinafter “Bar 20”) is a dairy farming business based in 6 Kerman, California. (Doc. No. 54-1 at 14.) Defendant employed plaintiffs Jose Maciel and Elvis 7 Bonilla as “milkers,” whose responsibilities included milking cows, monitoring the health 8 conditions of cows, maintaining and cleaning corrals, cleaning the farm, inseminating cows, 9 delivering calves, and assisting in defendant’s veterinary clinic. (Id.) 10 The detailed procedural history of this action was described in a previous order and will 11 not be reprised below. (See Doc. No. 34.) As relevant here, this action now proceeds on 12 plaintiffs’ fifth amended complaint, which alleges eight causes of action under California’s Labor 13 Code, Unfair Competition Law, and Private Attorneys General Act (“PAGA”), in addition to the 14 federal Fair Labor Standards Act (“FLSA”). (See Doc. No. 44.) On April 7, 2020, following the 15 court’s rejection of the parties’ Third Amended Settlement Agreement, plaintiffs renewed their 16 motion for preliminary approval of class action settlement based on the parties’ Fourth Amended 17 Settlement Agreement. (Doc. No. 54). On August 28, 2020, the court conditionally granted the 18 motion subject to additional changes being made to the Fourth Amended Settlement as described 19 in the court’s order. (Doc. No. 60.) On September 28, 2020, plaintiffs filed the Szamet 20 Declaration and several exhibits in response to the court’s order conditionally granting plaintiffs’ 21 motion. (Doc. No. 61.) 22 The Fifth Amended Settlement now proposed by the parties corrects the deficiencies 23 identified by the court in its previous order conditionally granting preliminary approval. (See 24 Doc. No. 60.) For example: (1) the Settlement now redistributes unclaimed funds in a second, 25 pro rata payout to the Class Members who claimed their awards after the first distribution of 26 funds (Doc. No. 61 at ¶ 6); the class notice has been revised to include details pertaining to this 27 second distribution of funds and with a Spanish translation (id. at ¶¶ 12–15); and the 28 implementation schedule was revised to reflect the re-mailing response deadline for undeliverable 1 notices, the second distribution of funds, and the removal of the final approval hearing date for 2 the court to provide a new date for that hearing (id. at ¶ 21). 3 LEGAL STANDARDS 4 The court recited the relevant legal standards for preliminary approval of Federal Rule of 5 Civil Procedure 23 class and FLSA collection action settlements in its order of August 28, 2020. 6 (See Doc. No. 60 at 5–10.) The court incorporates those standards by reference here and 7 throughout this order. 8 LEGAL ANALYSIS 9 A. Preliminary Class Certification 10 As the court determined in its previous order conditionally granting preliminary approval, 11 plaintiffs’ showings with respect to numerosity, commonality, typicality, and adequacy of 12 representation are adequate to meet the requirements of Rule 23(a). (Doc. No. 60 at 12–16); see 13 also Lozano v. AT&T Wireless Services, Inc., 504 F.3d 718, 730 (9th Cir. 2007). The court also 14 determined that Rule 23(b)(3)’s predominance and superiority requirements are met here. (Doc. 15 No. 60 at 16–18); see also Ellis v. Costco Wholesale Corp., 657 F.3d 970, 981 (9th Cir. 2011). 16 The court reaffirms these findings because the parties’ Fourth and Fifth Settlement Agreements 17 are identical with respect to class certification. (See Doc. No. 61-2.) Accordingly, the court 18 grants preliminary certification of the proposed class under Federal Rule of Civil Procedure 23. 19 B. Conditional Certification of FLSA Collective Action 20 In its previous order, the court found that conditional certification of this FLSA collective 21 is appropriate. (Doc. No. 60 at 18.) The court also reaffirms this finding, again because the 22 Fourth and Fifth Settlement Agreements are identical with respect to FLSA collective action 23 certification. (See Doc. No. 61-2.) Accordingly, the court grants conditional certification of the 24 FLSA collective action. 25 C. Preliminary Settlement Approval 26 1. The PAGA Component 27 The court recited the relevant legal standards for reviewing a proposed settlement under 28 PAGA in its order issued on August 28, 2020. (See Doc. No. 60 at 19.) The court incorporates 1 those standards by reference here and throughout this order. In its previous order, the court noted 2 that the parties had failed to submit proof of the submission of their Fourth Amended Settlement 3 Agreement to the LWDA. (Id.) Here, attached to the Szamet Declaration is plaintiffs’ proof of 4 submission of the Fifth Amended Settlement to the LWDA for its review. (Doc. No. 61-8.) 5 Because of the current lack of objection from the LWDA, despite notice of the Fifth Amended 6 Settlement being provided to it, Chamberlain v. Baker Hughes, a GE Co., LLC, No. 1:19-cv- 7 000831-DAD-JLT, 2020 WL 4350207, at *5 (E.D. Cal. July 29, 2020), the court will proceed to 8 address the fairness, reasonableness, and adequacy of the PAGA penalties under that agreement 9 below. 10 2. The FLSA Component 11 The court determined in its previous order that a bona fide dispute as to defendants FLSA 12 liability exists between the parties in this case. (Doc. No. 60 at 19–20.) The reaffirms that 13 finding, again because the Fourth and Fifth Settlement Agreements are identical with respect to 14 the existence of a bona fide dispute regarding defendant’s FLSA liability. (See Doc. No. 61-2.) 15 Accordingly, the court will also evaluate the fairness of the proposed settlement as to the FLSA 16 claims. 17 3. Procedural Fairness 18 In its previous order, the court concluded based on representations by the parties that the 19 parties’ negotiations constituted genuine, informed, and arm’s-length bargaining. (Doc. No. 60 at 20 20–21.) The court reaffirms that finding because the Fourth and Fifth Settlement Agreements are 21 identical with respect to procedural fairness. 22 4. Substantive Fairness 23 a.

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Related

Ellis v. Costco Wholesale Corp.
657 F.3d 970 (Ninth Circuit, 2011)
Lozano v. AT & T Wireless Services, Inc.
504 F.3d 718 (Ninth Circuit, 2007)