Mar v. Betts Company

District Court, E.D. California·Decided October 26, 2020·No. 1:19-cv-00786·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 FOR THE EASTERN DISTRICT OF CALIFORNIA 6 7 JOSEPH MAR, individually, and on Case No. 1:19-cv-00786-NONE-BAM 8 behalf of other members of the general public similarly situated; FINDINGS AND RECOMMENDATIONS 9 REGARDING PLAINTIFF’S MOTION FOR Plaintiff, PLAINTIFF’S COUNSEL FEES AND 10 COSTS AND ENHANCEMENT PAYMENT vs. 11 BETTS COMPANY, et al., (Doc. No. 22) 12

13 Defendants.

14 15 On February 15, 2020, Plaintiff Joseph Mar (“Plaintiff”), individually, and on behalf of 16 other members of the general public similarly situated, filed a Motion for Plaintiff’s Counsel Fees 17 and Costs and Enhancement Payment. (Doc. No. 22.) The matter was referred to the undersigned 18 pursuant to 28 U.S.C. § 636(b)(1)(A), Local Rule 302, and the Standing Order in Light of 19 Ongoing Judicial Emergency in the Eastern District of California. (See Doc. No. 11-1.) 20 The motion came before the Court for hearing on October 16, 2020. Counsel Melissa 21 Heuther appeared by telephone on behalf of Plaintiff. Counsel Amanda Miller appeared by 22 telephone on behalf of Defendant Betts Company (“Defendant”). Having considered the briefing, 23 the arguments of counsel, and the record in this case, the Court will recommend that the motion 24 be granted in part and denied in part as follows. 25 I. BACKGROUND 26 This is a wage-and-hour case alleging both a collective action under the Fair Labor 27 Standards Act, 29 U.S.C. § 216(b) (“FLSA”), and a Federal Rule of Civil Procedure 23 class 28 action as to state law claims. (See Doc. No. 1.) Defendant manufactures and supplies springs and 1 heavy-duty truck parts to transportation, automotive aftermarket, and other industrial sectors. 2 (Doc. No. 21-1 at 2.) The operative complaint alleges that Defendant: (1) failed to pay minimum 3 and overtime wages; (2) failed to provide compliant meal and rest periods or pay associated 4 premium payments; (3) failed to timely pay wages upon termination; (4) failed to pay timely 5 wages; (5) failed to provide compliant wage statements; (6) failed to maintain requisite payroll 6 records; and (7) failed to reimburse necessary business-related expenses. (Doc. No. 1 at Ex. B, 7 Doc. No. 21-1 at 3.) 8 The complaint was originally filed on August 20, 2018, in the Superior Court of 9 California for the County of Fresno. (Doc. No. 1.) The parties participated in a private mediation 10 on March 7, 2019, with Paul Grossman, Esq. (Doc. No. 21-1 at 3.) The matter was removed to 11 this Court on June 4, 2019, and on August 29, 2019, the parties filed a joint notice of settlement. 12 (Doc. Nos. 1, 4.) 13 The settlement agreement proposes a total payment of $900,000.00 to be allocated as 14 follows: up to $25,000.00 in settlement administration costs; an $8,000.00 enhancement payment 15 to the named plaintiff; attorneys’ fees of 35% of the settlement fund; and Plaintiff’s counsel’s 16 costs not to exceed $15,000.00. (Doc. No. 13-1.) After subtracting the litigation costs, attorneys’ 17 fees, enhancement payment, and settlement administration costs, the remaining settlement fund is 18 to be distributed with 80% allocated to the class settlement and 20% allocated to the FLSA 19 settlement. (Id.) Each member of the settlement class and the FLSA collective will be entitled to a 20 pro rata share of the settlement proceeds based on his or her weeks worked. (Id.) 21 On February 15, 2020, the parties filed a motion seeking preliminary approval of the class 22 and collective settlement. (Doc. No. 13.) At the hearing on the motion for preliminary approval, 23 the Court expressed concern regarding the amount of attorneys’ fees sought (35% of the fund and 24 above the benchmark) and advised Plaintiff’s counsel that the amount requested would need to be 25 substantiated. Plaintiff’s counsel indicated that a lodestar crosscheck would be provided, and the 26 Court advised counsel that the crosscheck would need to utilize rates approved in this Division. 27 The Court issued findings and recommendations regarding preliminary approval of the class 28 action settlement on April 20, 2020, and an order adopting the findings and recommendations on 1 May 20, 2020. (Doc. Nos. 18, 20.) On September 11, 2020, Plaintiff filed a motion for final 2 approval of the class and collective action settlement. (Doc. No. 21.) 3 Concurrently with the motion for final approval, Plaintiff filed the instant motion seeking 4 an award of attorneys’ fees and costs as well as an enhancement payment. (Doc. No. 22.) By the 5 motion, Plaintiff seeks an award of attorneys’ fees in the amount of $315,000.00, representing 6 35% of the settlement fund, and reimbursement of litigation costs and expenses in the amount of 7 $15,000.00. (Doc. No. 22-1 at 1.) Plaintiff further seeks an enhancement payment in the amount 8 of $8,000.00. (Id.) 9 II. LEGAL STANDARD 10 “In a certified class action, the court may award reasonable attorney’s fees and nontaxable 11 costs that are authorized by law or by the parties’ agreement.” Fed. R. Civ. P. 23(h). Additionally, 12 because FLSA settlements require court approval, payment of attorneys' fees from settlement 13 proceeds is also subject to review by the court. See Avila v. Los Angeles Police Dep't, 758 F.3d 14 1096, 1104-05 (9th Cir. 2014) (reviewing an award of attorneys' fees under the FLSA); Dunn, 15 2016 WL 153266, at *9 (N.D. Cal. Jan. 13, 2016) (“The Court retains the authority to determine 16 what fees are reasonable [in an FLSA settlement].”); Selk v. Pioneers Mem’l Healthcare Dist., 17 159 F. Supp. 3d 1164, 1180 (S.D. Cal. 2016) (“Where a proposed settlement of FLSA claims 18 includes the payment of attorney's fees, the court must also assess the reasonableness of the fee 19 award.”) (quoting Wolinsky v. Scholastic Inc., 900 F. Supp. 2d 332, 336 (S.D.N.Y. 2012) ). 20 In the Ninth Circuit, “courts typically calculate 25% of the common fund as the 21 ‘benchmark’ for a reasonable fee award, providing adequate explanation in the record for any 22 ‘special circumstances’ that justify departure.” In re Bluetooth Headset Products Liability 23 Litigation, 654 F.3d 935, 942 (9th Cir. 2011) (citations omitted). The usual range for common 24 fund attorney fees is between 20–30%. Vizcaino v. Microsoft Corp., 290 F.3d 1043, 1047 (9th 25 Cir. 2002). When applying the percentage of the common fund method in calculating attorney 26 fees, courts use the “lodestar” method as a crosscheck to determine the reasonableness of the fee 27 request. See Vizcaino, 290 F.3d at 1050. “Under the lodestar method, the prevailing attorneys are 28 awarded an amount calculated by multiplying the hours they reasonably expended on the 1 litigation times their reasonable hourly rates.” Adoma v. Univ. of Phoenix, Inc., 913 F. Supp. 2d 2 964, 981 (E.D. Cal. 2012) “This amount may be increased or decreased by a multiplier that 3 reflects any factors not subsumed within the calculation, such as ‘the quality of representation, the 4 benefit obtained for the class, the complexity and novelty of the issues presented, and the risk of 5 nonpayment.’” Id.

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