Martinez v. University of San Diego

District Court, S.D. California·Decided November 7, 2024·No. 3:20-cv-01946·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 HALEY MARTINEZ, et al., Case No.: 3:20-cv-01946-RBM-VET Plaintiffs, 12 ORDER GRANTING PLAINTIFFS’ v. 13 MOTION FOR PRELIMINARY UNIVERSITY OF SAN DIEGO, APPROVAL OF CLASS ACTION 14 Defendant. SETTLEMENT AND NOTICE PLAN 15 [Doc. 220] 16 17 18 Pending before the Court is Plaintiffs1 Edgar Chavarria, Catherine Holden, and 19 Matthew Sheridan’s (collectively, the “Plaintiffs”) Motion for Preliminary Approval of 20 Class Action Settlement and Notice Plan (“Motion for Preliminary Approval”), which was 21 filed on May 16, 2024. (Doc. 220.) 22 In their Motion for Preliminary Approval, Plaintiffs move this Court pursuant to 23 Federal Rule of Civil Procedure 23 for an order (i) preliminarily approving the proposed 24 settlement agreement, including the exhibits attached thereto (“Settlement Agreement”); 25 (ii) appointing the named plaintiffs as class representatives; (iii) appointing Plaintiffs’ 26 27 28 1 1 counsel—Leeds Brown Law, P.C.; The Sultzer Law Group, P.C.; The Golan Firm PLLC; 2 Shegerian & Associates, Inc.; and Francis Mailman Soumilas, P.C.—as class counsel; (iv) 3 approving the notice plan and forms of notice to the class; and (v) setting all future dates 4 and procedures for opt-outs, objections, and a final approval hearing. (Id. at 2.2) 5 On September 23, 2024, the Court ordered supplemental briefing “regarding 6 certification of the class defined in the proposed Settlement Agreement.” (Doc. 221 at 4.) 7 On October 16, 2024, Plaintiffs filed a Supplemental Memorandum of Law in Further 8 Support of Preliminary Approval (“Supplemental Briefing”). (Doc. 228.) 9 To date, Defendant University of San Diego (“Defendant” or “USD”) has not filed 10 any opposition to Plaintiffs’ Motion for Preliminary Approval or their Supplemental 11 Briefing. 12 The Court finds this matter suitable for determination without oral argument 13 pursuant to Civil Local Rule 7.1(d)(1). For the reasons set forth below, Plaintiffs’ Motion 14 for Preliminary Approval is GRANTED subject to the guidance and conditions set forth 15 below. 16 I. BACKGROUND 17 The Court summarizes all filings relevant to Plaintiffs’ Motion for Preliminary 18 Approval below. 19 A. Plaintiffs’ Motion for Class Certification 20 On March 28, 2023, Plaintiffs filed a Motion for Class Certification. (See Docs. 21 108, 116.) Plaintiffs sought certification of the following class: 22 All students enrolled at the University of San Diego during the Spring 2020 semester who (i) were registered for at least one on-site course, and (ii) who 23 paid tuition, course fees, and/or Student Wellness fees, or on whose behalf 24 tuition, course fees, and/or Student Wellness fees were paid. 25 (Doc. 116-1 at 7.) 26 27 28 2 1 In this motion, Plaintiffs argued that the proposed class meets the four requirements 2 set forth in Rule 23(a): numerosity, commonality, typicality, and adequacy of 3 representation. (Doc. 116-1 at 14–18.) First, Plaintiffs argued that the proposed class is 4 so numerous that joinder of all members would be impracticable. (Id. at 14–15.) Second, 5 Plaintiffs asserted that there are questions of law and facts common to the proposed class, 6 e.g., whether Defendants failed to provide the in-person classes and services promised and 7 whether USD’s past performance created an implied-in-fact contract to provide in-person 8 educational services. (Id. at 15–16.) Third, Plaintiffs argued that their claims are typical 9 of the proposed class’s claims because the damages calculation is the same for Plaintiffs as 10 it would be for the proposed class. (Id. at 16–17.) Finally, Plaintiffs asserted that their 11 representation of the proposed class is adequate because they have engaged experienced 12 counsel, they have the same claims and interests as the proposed class members, and they 13 have dedicated significant time and energy to this lawsuit. (Id. at 17–18.) 14 Plaintiffs also argued that the proposed class meets the requirements of Rule 15 23(b)(3). (Id. at 18–26.) First, Plaintiffs argued that issues common to the proposed class, 16 e.g., whether USD promised students in-person education and whether USD breached that 17 promise, predominate over any individual issues. (Id. at 19–21.) Second, Plaintiffs 18 asserted that damages will be calculated the same for every member of the proposed class 19 and need not account for individual circumstances. (Id. at 21–23.) Finally, Plaintiffs 20 contended that the proposed class is the best method for adjudicating the proposed class 21 members’ claims because a single class action achieves “significant economies of time, 22 effort, expense, and promote uniformity of decision.” (Id. at 24–26 (internal quotation 23 omitted).) 24 Plaintiffs concluded that the Court should appoint Plaintiffs’ counsel as class counsel 25 pursuant to Rule 23(g)(1).3 26

27 3 On May 8, 2023, Defendant filed an Opposition to Plaintiffs’ Motion for Class 28 1 In its Order Granting in Part and Denying in Part Plaintiffs’ Rule 72 Motion to 2 Overturn Magistrate Judge Gallo’s May 23 Order Striking Plaintiffs’ Supplemental Expert 3 Report (“Rule 72 Order”) dated February 7, 2024, the Court ordered that discovery be 4 reopened for 60 days, allowed Plaintiffs to refile their Motion for Class Certification 30 5 days after the close of discovery, and therefore denied Plaintiffs’ Motion for Class 6 Certification without prejudice. (See Doc. 209 at 23.) Plaintiffs did not refile a Motion for 7 Class Certification. 8 B. Plaintiffs’ Motion for Preliminary Approval 9 In their Motion for Preliminary Approval, Plaintiffs seek the Court’s preliminary 10 approval of the proposed Settlement Agreement. (Doc. 220.) In the proposed Settlement 11 Agreement, the Parties define the class as “all enrolled students at USD who paid tuition, 12 the Student Wellness fee and/or course fees to USD, or who were credited with having paid 13 such tuition and/or Mandatory Fees to USD for the Spring 2020 term/semester.” (Doc. 14 220-5 [Settlement Agreement] § 1.29.) This definition differs from the class definition in 15 Plaintiffs’ Motion for Class Certification. 16 Plaintiffs then argue the proposed Settlement Agreement is fair, reasonable, and 17 adequate under Rule 23(e)(2). (Doc. 220 at 6, 13–14.) Specifically, Plaintiffs argue that 18 the Rule 23(e)(2) factors weigh in favor of preliminary approval because (1) the class 19 representatives and class counsel have adequately represented the class; (2) the proposed 20 settlement was negotiated at arm’s length; (3) the relief provided to the class is adequate 21 considering the costs, risks, and delay of trial, the effectiveness of the class notice and 22 processing of claims, and the proposed attorneys’ fees; and (4) the proposal treats members 23 of the class equitably. (Id. at 13–22.) Plaintiffs also assert that the proposed Settlement 24 25 26 Supplemental Authority in Support of their Opposition to Plaintiffs’ Motion for Class 27 Certification. (Doc. 155.) On June 1, 2023, September 12, 2023, and October 5, 2023, Plaintiffs filed three Notices of Supplemental Authority in Support of Plaintiffs’ Motion 28 1 Agreement satisfies the factors set forth in Churchill Vill., L.L.C. v. Gen. Elec., 361 F.3d 2 566 (9th Cir.2004) (id. at 22–24) and that the views of counsel should be given substantial 3 weight (id. at 24–25). Finally, Plaintiffs contend that their proposed notice plan provides 4 class members the best notice practicable under the circumstances and adequately informs 5 class members of the settlement and their right to object or opt-out. (Id. at 25–27.) 6 Although Plaintiffs reference their prior Motion for Class Certification (see id. at 6, 8, 15) 7 and request the Court confirm certification of the class (id.

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Martinez v. University of San Diego, (S.D. Cal. 2024).

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