Perez v. Gold Coast Farms, LLC

CourtDistrict Court, E.D. California
DecidedJuly 23, 2021
Docket1:18-cv-00927
StatusUnknown

This text of Perez v. Gold Coast Farms, LLC (Perez v. Gold Coast Farms, 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
Perez v. Gold Coast Farms, LLC, (E.D. Cal. 2021).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 MANUEL PEREZ and MACARIO No. 1:18-cv-00927-DAD-EPG PEREZ, 12 Plaintiffs, 13 ORDER GRANTING MOTION FOR v. APPROVAL OF PAGA SETTLEMENT 14 AGREEMENT ALL AG, INC., a California corporation; 15 et al., (Doc. No. 54) 16 Defendants. 17 18 This matter is before the court on the unopposed motion for approval of the parties’ 19 settlement agreement of plaintiffs’ claims under the Private Attorneys General Act (“PAGA”) 20 filed by plaintiffs Manuel Perez and Macario Perez on May 18, 2021. (Doc. No. 54.) Pursuant to 21 General Order No. 617 addressing the public health emergency posed by the coronavirus 22 outbreak, the court took the motion under submission to be decided on the papers. (Doc. No. 55.) 23 Having considered the unopposed motion, the court will approve the settlement agreement. 24 BACKGROUND 25 Defendants Means Nursery, Inc. (“Means Nursery”) and Gold Coast Farms, LLC (“Gold 26 Coast”) cultivate and prepare ornamental plants for distribution to third-party retailers, and they 27 hired defendant All Ag, Inc. (“All Ag”), a licensed farm labor contractor, to supply workers and 28 process payroll at Gold Coast’s Woodlake, California nursery in Tulare County. (Doc. Nos. 22 at 1 ¶¶ 8, 28–30; 54 at 4.) Plaintiffs were employed by defendants as nursery workers at the 2 Woodlake nursery; Manuel Perez worked for defendants from approximately May 2013 through 3 November 21, 2017, and Macario Perez worked for defendants from approximately May 2013 4 through December 4, 2017. (Doc. Nos. 22 at ¶¶ 8–9; 54 at 4.) 5 On July 9, 2018, plaintiffs initiated this wage-and-hour lawsuit against defendants. (Doc. 6 No. 1.) In their operative second amended complaint, plaintiffs allege ten causes of action under 7 California’s Labor Code, Business and Professions Code, Unfair Competition Law, and the 8 Private Attorney General Act (“PAGA”), as well as the federal Fair Labor Standards Act 9 (“FLSA”). (Doc. No. 22.) Plaintiffs do not assert any class claims nor do they seek to represent a 10 putative class. Rather, plaintiffs assert their individual state law labor code claims and also seek 11 to represent an FLSA collective “pursuant to 29 U.S.C. § 216(b), for all workers who were 12 similarly situated to [p]laintiffs and who were not paid overtime wages in violation of the FLSA 13 from three years preceding the filing of this complaint through the present.” (Doc. Nos. 22 at 16; 14 54 at 3.) As to their PAGA claim, plaintiffs assert that they are “aggrieved employees” and seek 15 civil penalties for labor code violations on behalf of themselves and other current or former 16 employees of defendants pursuant to California Labor Code § 2699(a). (Doc. Nos. 22 at 15–16; 17 54 at 3.) 18 Following settlement conferences with U.S. Magistrate Judge Jeremy D. Peterson on 19 April 30, 2019 and July 8, 2019, the parties agreed to settle this case. (Doc. Nos. 31, 39.) On 20 July 26, 2019, plaintiffs filed a motion for approval of the parties’ PAGA settlement agreement, 21 which the court denied without prejudice on April 17, 2020 due to several expressed concerns. 22 (Doc. Nos. 40, 50.) In that order, the court strongly encouraged the parties to continue their 23 settlement efforts and resolve the issues the court had identified therein. (Doc. No. 50 at 17.) 24 On May 18, 2021, plaintiffs filed the pending motion for approval of the parties’ PAGA 25 settlement, explaining that “[s]ince the Court’s denial of the Plaintiffs’ motion to approve the 26 First Settlement Agreement, the Parties have discussed and agreed on how to address the Court’s 27 concerns and have finalized and signed an agreement that resolves Plaintiffs’ PAGA claims,” for 28 which plaintiffs now seek court approval pursuant to California Labor Code § 2699(l)(2). (Doc. 1 No. 54 at 4.) On May 19, 2021, defendants filed a notice of non-opposition to the pending 2 motion, stating that they “entered into the proposed settlement to resolve this litigation, and 3 therefore support its approval by the Court,” but “they vehemently deny any wrongdoing or 4 liability in this matter and reserve all rights to contest the facts and legal analyses set forth in the 5 Motion and supporting documents in the event that, for any reason, the settlement is not approved 6 and litigation of Plaintiffs’ claims resumes.” (Doc. No. 56 at 1.) 7 Plaintiffs also note in their pending motion that the parties “reached a private settlement 8 agreement to resolve Plaintiffs’ individual claims.” (Doc. No. 54 at 4.) The parties provided the 9 court with a copy of that private settlement agreement for the court’s in camera review and for 10 the court to determine whether to approve plaintiffs’ settlement of their individual FLSA claim as 11 a fair and reasonable resolution of a bona fide dispute. See Beidleman v. City of Modesto, No. 12 1:16-cv-01100-DAD-SKO, 2018 WL 1305713, at *1 (E.D. Cal. Mar. 13, 2018); Barrentine v. 13 Ark.-Best Freight Sys., Inc., 450 U.S. 728, 740 (1981); see also Yue Zhou v. Wang’s Rest., No. 14 5:05-cv-00279-PVT, 2007 WL 2298046, at *1 (N.D. Cal. Aug. 8, 2007) (“The proper procedure 15 for obtaining court approval of the settlement of FLSA claims is for the parties to present to the 16 court a proposed settlement, upon which the district court may enter a stipulated judgment only 17 after scrutinizing the settlement for fairness.”). The court has reviewed the parties’ private 18 settlement agreement of plaintiffs’ individual claims, which includes their individual FLSA 19 claims, and finds that the agreement is a fair and reasonable resolution of the parties’ bona fide 20 dispute with regard to those claims. The court now turns to the pending motion for approval of 21 the parties’ PAGA settlement agreement. 22 THE PROPOSED PAGA SETTLEMENT 23 According to the parties’ PAGA settlement agreement (“the PAGA Agreement”), 24 defendants will pay a gross settlement payment of $104,000.00 to resolve plaintiffs’ PAGA 25 claims as well as attorneys’ fees and costs related to the PAGA claims. (Doc. No. 54 at 6.) 26 Subject to court approval, the gross settlement payment will include: (1) up to $4,000.00 in 27 ///// 28 ///// 1 claims administration costs to the settlement claims administrator1; (2) $3,403.25 in plaintiffs’ 2 litigation costs related to plaintiffs’ PAGA claims; (3) $20,596.75 in plaintiffs’ attorneys’ fees in 3 connection with the prosecution of plaintiffs’ PAGA claims; and (4) the remaining amount for the 4 PAGA fund, to be divided 75 percent to the Labor and Workforce Development Agency 5 (“LWDA”) and 25 percent to the aggrieved employees (“the PAGA group”). (Id. at 6, 12–13.) 6 The PAGA group is defined as: 7 Plaintiffs and all current and former employees employed by Gold 8 Coast Farms, LLC, Means Nursery, Inc. and All Ag, Inc. in a nonexempt position at Defendant Gold Coast Farms, LLC’s 9 Woodlake Location, located at 32701 Road 204, Woodlake, California 93286, from July 9, 2017 through the date the Court 10 approves the settlement. 11 (Doc. No. 54-1 at 12.) There are approximately 206 aggrieved employees in the PAGA group. 12 (Doc. No. 54 at 6.) The PAGA Agreement provides that the distribution of the 25% of the PAGA 13 Fund to the PAGA group members will be done in accordance with Labor Code § 2699(i), on a 14 pro rata basis based on the number of workweeks the member worked for defendants from July 15 9, 2017 through the date of court approval, relative to the total number of workweeks all PAGA 16 group members worked during that time period. (Doc. Nos.

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Bluebook (online)
Perez v. Gold Coast Farms, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perez-v-gold-coast-farms-llc-caed-2021.