Miguel Gutierrez v. New Hope Harvesting, LLC

CourtDistrict Court, C.D. California
DecidedApril 26, 2024
Docket2:19-cv-07077
StatusUnknown

This text of Miguel Gutierrez v. New Hope Harvesting, LLC (Miguel Gutierrez v. New Hope Harvesting, LLC) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miguel Gutierrez v. New Hope Harvesting, LLC, (C.D. Cal. 2024).

Opinion

1 O 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 Case No. 2:19-cv-07077-FWS-AJR 11

12 MIGUEL GUTIERREZ, ORDER GRANTING MOTION FOR Plaintiff, PRELIMINARY APPROVAL OF 13 CLASS/COLLECTIVE ACTION AND 14 v. PAGA SETTLEMENT [214]

15 NEW HOPE HARVESTING, LLC.; 16 GUADALUPE GASPAR; EUGENIA 17 GASPAR MARTINEZ; ARACELI GASPAR GASPAR MARTINEZ; AND 18 JDB PRO, INC., d/b/a CENTRAL 19 WEST PRODUCE, Inclusive, 20 Defendants. 21 22 23 24 25 26 27 28 1 Before the court is Plaintiff Miguel Gutierrez’s (“Plaintiff”) Motion for 2 Approval of Class/Collective Action and PAGA Settlement. (Dkt. 214 (“Motion” or 3 “Mot.”).) The court held oral argument on the matter on April 11, 2024.1 (Dkt. 215.) 4 Based on the state of the record, as applied to the applicable law, the Motion is 5 GRANTED. 6 I. Background 7 In this case, Plaintiff brings several claims under federal and state laws against 8 Defendants New Hope Harvesting LLC, Guadalupe Gaspar, Eugenia Gaspar 9 Martinez, and Araceli Gaspar Martinez (collectively, “Defendants”) based on 10 Defendants alleged failures to properly to pay overtime wages and minimum wages, 11 failures to provide proper rest and meal periods, and improper charges or failures to 12 reimburse expenses experienced. (Dkt. 25 ¶¶ 1-5, 9-11, 19-26, 34-92.) Plaintiff seeks 13 to represent a collective under the Fair Labor Standards Act (“FLSA”), a class of 14 plaintiffs asserting various causes of action under federal and state laws pursuant to 15 Federal Rule of Civil Procedure 23, and aggrieved employees under California’s 16 Private Attorney General Act (“PAGA”). (Id. ¶¶ 118-244.) 17 The Motion concerns Plaintiff’s request to settle the claims alleged in the 18 operative First Amended Complaint against Defendants. Plaintiff requests 19 preliminary class certification of approximately 900 individuals that worked for 20 Defendants as agricultural workers from February 4, 2016, through the date of 21 preliminary approval. (Mot. at 2.) Plaintiff also requests that the court preliminary 22 approve the proposed settlement agreement and procedures for notice, and set the 23 matter for a final fairness hearing. (Id. at 2-3.) Plaintiff further requests appointment 24 25 26 27 1 The court continued the Motion after the April 11, 2024, hearing to April 25, 2024, pending receipt of additional supporting materials from Plaintiff. (Dkt. 215.) Having 28 received those materials, the court took the matter off calendar. (Dkt. 218.) 1 as class representative, appointment of his attorneys as class counsel, and appointing 2 Atticus Administration LLC as settlement administrator. (Id.) 3 II. Legal Standard 4 Rule 23(e) provides that the claim “of a class proposed to be certified for 5 purposes of settlement” may be settled “only with the court’s approval.” Fed. R. Civ. 6 P. 23(e). Court approval is also required for settlement of an FLSA collective action 7 and for a PAGA claim. See Quiruz v. Specialty Commodities, Inc., 2020 WL 8 6562334, at *2-3 (N.D. Cal. Nov. 9, 2020); Cal. Labor Code § 2699(l)(2); Seminiano 9 v. Xyris Enter., Inc., 602 F. App’x 682, 683 (9th Cir. 2015) (citing Nall v. Mal-Motels, 10 Inc., 723 F.3d 1304, 1306 (11th Cir. 2013)). “[T]he factors that courts consider when 11 evaluating a collective action settlement are essentially the same as those that courts 12 consider when evaluating a [class action] settlement under Rule 23(e).” Id. at *2 13 (quoting De Leon v. Ricoh USA, Inc., 2020 WL 1531331, at *7 (N.D. Cal. Mar. 31, 14 2020)). Because PAGA does not establish a governing standard for review of PAGA 15 settlements, district courts evaluating PAGA claims employ different approaches. 16 Observing the differences between PAGA claims and a Rule 23 class action,2 some 17 courts “have found it appropriate to approve a PAGA settlement where ‘the settlement 18 terms (1) meet the statutory requirements set forth by PAGA, and (2) are 19 fundamentally fair, reasonable, and adequate in view of PAGA’s public policy 20 goals.’” See Quiruz, 2020 WL 6562334, at *3 (quoting Chamberlain v. Baker 21 Hughes, 2020 WL 4350207, at *4 (E.D. Cal. July 29, 2020)).3 22

23 2 The California Supreme Court has described a PAGA action as a “form of qui tam 24 action.” Sakkab v. Luxottica Retail N. Am., Inc., 803 F.3d 425, 439 (9th Cir. 2015) (citing Iskanian v. CLS Transportation Los Angeles, LLC, 59 Cal. 4th 348, 382 25 (2014), abrogated on other grounds by Viking River Cruises, Inc. v. Moriana, 596 26 U.S. 639 (2022)). 27 3 Others review PAGA settlements by reference to the Ninth Circuit’s eight-factor test traditionally used to evaluate class action settlements. See, e.g., Wanderer v. Kiewit 28 1 “The purpose of Rule 23(e) is to protect the unnamed members of the class 2 from unjust or unfair settlements affecting their rights.” In re Syncor ERISA Litig., 3 516 F.3d 1095, 1100 (9th Cir. 2008). Accordingly, the court may approve a proposed 4 settlement “after a hearing and only on finding that it is fair, reasonable and 5 adequate.” Fed. R. Civ. P. 23(e)(2). “[T]he question whether a settlement is 6 fundamentally fair within the meaning of Rule 23(e) is different from the question 7 whether the settlement is perfect in the estimation of the reviewing court.” Lane v. 8 Facebook, Inc., 696 F.3d 811, 819 (9th Cir. 2012). Courts in the Ninth Circuit 9 “examining whether a proposed settlement comports with Rule 23(e)(2) [are] guided 10 by” eight factors: 11 12 (1) the strength of the plaintiff’s case; (2) the risk, expense, complexity, 13 and likely duration of further litigation; (3) the risk of maintaining class 14 action status throughout the trial; (4) the amount offered in settlement; (5) 15 the extent of discovery completed and the stage of the proceedings; (6) the 16 experience and views of counsel; (7) the presence of a governmental 17 participant; and (8) the reaction of the class members of the proposed 18 settlement. 19 20 Kim v. Allison, 8 F.4th 1170, 1178 (9th Cir. 2021) (citations and internal 21 quotation marks omitted); see also Hanlon v. Chrysler Corp., 150 F.3d 1011, 1026 22 (9th Cir. 1998) (citation omitted).4 It is the parties’ burden to show the court will 23 24 Infrastructure W. Co., 2020 WL 5107618, at *2-4 (E.D. Cal. Aug. 31, 2020). For the 25 sake of completeness, the court evaluates the proposed settlement under the separate test that accounts for PAGA’s statutory goals. 26 4 While Rule 23(e) was amended in 2018, courts continue to apply the Ninth Circuit’s 27 eight-factor test. See, e.g., Senne v. Kansas City Royals Baseball Corp., 2023 WL 2699972, at *5 (N.D. Cal. Mar. 29, 2023), aff’d sub nom. Senne v. Concepcion, 2023 28 1 “likely” be able to approve a proposed settlement under Rule 23(e)(2). Fed. R. Civ. P. 2 23(e)(1)(B)(ii). 3 “In addition, although strong judicial policy favors settlements, the settlement 4 may not be the product of collusion among the negotiating parties.” Churchill Vill., 5 L.L.C. v. Gen. Elec., 361 F.3d 566, 576 (9th Cir. 2004) (cleaned up). The court looks 6 for “subtle signs that class counsel have allowed pursuit of their own self-interests 7 to . . . infect the negotiations.” Briseño v. Henderson, 998 F.3d 1014, 1023 (9th Cir. 8 2021) (quoting In re Bluetooth Headset Prod. Liab. Litig., 654 F.3d 935, 947 (9th Cir. 9 2011)).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jackson v. Clark
26 U.S. 628 (Supreme Court, 1828)
Amchem Products, Inc. v. Windsor
521 U.S. 591 (Supreme Court, 1997)
Philip Rannis v. Peter Recchia
380 F. App'x 646 (Ninth Circuit, 2010)
Wolin v. Jaguar Land Rover North America, LLC
617 F.3d 1168 (Ninth Circuit, 2010)
Ervin v. OS Restaurant Services, Inc.
632 F.3d 971 (Seventh Circuit, 2011)
Wal-Mart Stores, Inc. v. Dukes
131 S. Ct. 2541 (Supreme Court, 2011)
Pitts v. Terrible Herbst, Inc.
653 F.3d 1081 (Ninth Circuit, 2011)
In Re Bluetooth Headset Products Liability
654 F.3d 935 (Ninth Circuit, 2011)
United States v. Joseph Freed
688 F.2d 24 (Sixth Circuit, 1982)
Rosario v. Livaditis
963 F.2d 1013 (Seventh Circuit, 1992)
Ellis v. Costco Wholesale Corp.
657 F.3d 970 (Ninth Circuit, 2011)
Staton v. Boeing Co.
327 F.3d 938 (Ninth Circuit, 2003)
Ginger McCall v. Facebook, Inc.
696 F.3d 811 (Ninth Circuit, 2012)
Comcast Corp. v. Behrend
133 S. Ct. 1426 (Supreme Court, 2013)
Candace Nall v. Mal-Motels, Inc.
723 F.3d 1304 (Eleventh Circuit, 2013)
Corporate Technologies, Inc. v. Harnett
731 F.3d 6 (First Circuit, 2013)
In Re Wells Fargo Home Mortg. Overtime Pay Lit.
571 F.3d 953 (Ninth Circuit, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
Miguel Gutierrez v. New Hope Harvesting, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miguel-gutierrez-v-new-hope-harvesting-llc-cacd-2024.