Razo v. AT&T Mobility Services, LLC

District Court, E.D. California·Decided October 15, 2021·No. 1:20-cv-00172·Unknown

Opinion

LUIS M. SALAS RAZO, on his own Case No. 1:20-cv-00172-NONE-HBK behalf and on behalf of all others similarly situated, FINDINGS AND RECOMMENDATIONS TO GRANT PLAINTIFF’S MOTION TO Plaintiffs, APPOINT INTERIM CLASS COUNSEL1 v. (Doc. No. 24) AT&T MOBILITY SERVICES, LLC, SEVEN-DAY OBJECTION PERIOD Defendant. Pending is Plaintiff’s Motion to Appoint Interim Class Counsel under Fed. R. Civ. P. 23(g). (Doc. No. 24, “Motion”). Plaintiff seeks the appointment of his counsel, Bradley/Grombacher, LLP, as interim class counsel in this action in order to protect the rights of the putative class members. (See generally Id.). Plaintiff charges a competing action, Wallack et. al v. AT&T Mobility, Case No. CIVSB2117915, San Bernardino Superior Court (“Wallack”), is a reverse auction aimed at “gutting this case” thus necessitating the appointment of interim Class counsel to protect the rights of the putative class. (Id. at 10). Attached to the Motion is the supporting declaration of Attorney Kiley L. Grombacher. (Doc. No. 24-1). Plaintiff also submits 1 This matter was referred to the undersigned pursuant to 28 U.S.C. § 636(b)(1)(B) and Eastern District of California Local Rule 302 (E.D. Cal. 2019). a request for judicial notice. (Doc. No. 25). Defendant AT&T filed an Opposition to the Motion. (Doc. No. 29). Plaintiff filed a Reply. (Doc. No. 33). This matter is fully briefed. For the reasons that follow, the undersigned recommends the district court GRANT the Motion. Initially the Court addresses Plaintiff’s request for judicial notice. This Court may “judicially notice” facts and documents that “can be accurately and readily determined from sources whose accuracy cannot reasonably be questioned.” Fed. R. Evid. 201(b)(2). This encompasses other court proceedings “if those proceedings have a direct relation to matters at issue.” United States ex rel. Robinson Rancheria Citizens Council v. Borneo, Inc., 971 F.2d 244, 248 (9th Cir. 1992) (citation and internal quotation marks omitted); Trigueros v. Adams, 658 F.3d 983, 987 (9th Cir. 2011). Plaintiff requests the Court take judicial notice of the proceedings in Wallack et. al v. AT&T Mobility, Case No. CIVSB2117915, San Bernardino Superior Court. (Doc. No. 25). Plaintiff submits the following state court filings for this Court’s judicial notice: • Exhibit A: the complaint in Wallack et al. v. AT&T Mobility (San Bernardino Superior Court (Case No. CIVSB2117915). • Exhibit B: the notice of motion for preliminary approval and memorandum of points of authorities filed in the Wallack action. • Exhibit C: the declaration of Edward J. Wynne (counsel for the plaintiffs in the Wallack action) in support of the Wallack plaintiffs’ motion for preliminary approval. The Wallack Settlement Agreement is attached as Exhibit 1 to the Wynne declaration. The proposed class notice is attached as Exhibit A to the settlement agreement. • Exhibit D: the declaration of Gregg Shavitz (counsel for the plaintiffs in the Wallack action) in support of the Wallack plaintiffs’ motion for preliminary approval. • Exhibit E: the declaration of Plaintiff Samuel Wallack in support of the Wallack plaintiffs’ motion for preliminary approval. • Exhibit F: the declaration of Plaintiff Miguel Garcia in support of the Wallack plaintiffs’ motion for preliminary approval. • Exhibit G: the declaration of Plaintiff Marbella Baltazar in support of the Wallack plaintiffs’ motion for preliminary approval. • Exhibit H: the declaration of Plaintiff Gonzalo Nurena in support of the Wallack plaintiffs’ motion for preliminary approval. • Exhibit I: the declaration of Plaintiff Jonny Dagher in support of the Wallack plaintiffs’ motion for preliminary approval. • Exhibit J: the declaration of Plaintiff Sean Voight in support of the Wallack plaintiffs’ motion for preliminary approval. • Exhibit K: the proposed order filed by the Wallack plaintiffs in support of their motion for preliminary approval. These documents’ accuracy is self-evident. Accordingly, the Court takes judicial notice of the above documents filed in Wallack et al. v. AT&T Mobility (San Bernardino Superior Court (Case No. CIVSB2117915). A. Procedural History This putative class action was initiated on August 27, 2019 in the Superior Court of California in and for Madera County by counsel from the firm Bradley/Grombacher, LLP on behalf of Plaintiff Luis M. Salas Razo. (Doc. No. 1-4 at 5-16). The named Plaintiff, Luis M. Salas Razo, is a former hourly, non-exempt employee of Defendant who worked at an AT&T mobility store in Madera, California, as a sales representative for eleven years until his employment was terminated in June 2018. (Id.). On January 31, 2020, Defendant AT&T removed the case to this court. (Doc. No. 1). Until yesterday, Plaintiff was is proceeding on his Second Amended Complaint (“SAC”), filed on July 30, 2020, which sets forth the following six causes of action: (1) failure to pay wages for all hours worked; (2) failure to pay overtime wages; (3) failure to pay all wages due at termination of employment; (4) failure to provide timely, accurate wage statements; (5) violation of California Business and Professions Code § 17200, et. seq., and (6) civil penalties for violation of California Labor Code §§ 2698, et. seq. (Doc. No. 9). Plaintiff asserts the primary claim in this putative class action challenges AT&T’s failure to pay meal and rest period premiums at the employee’s regular rate which was recently decided by the California Supreme Court on July 15, 2021 in Ferra v. Lowes Hollywood, LLC, 11 Cal. 5th 858 (2021). (Doc. No. 24 at 9). On August 13, 2020, Defendant AT&T moved to dismiss the SAC or alternatively stay the action. (Doc. No. 10). Plaintiff timely opposed the motion to dismiss on August 25, 2020. (Doc. No. 11). Defendant AT&T filed its reply on September 8, 2020. (Doc. No. 15). On October 14, 2021, the Court denied Defendants’ motion to dismiss or stay in its entirety and permitted Plaintiff thirty days to file a Third Amended Complaint to address the issue of a prayer for damages in connection with his wage statement claim. (See generally Doc. No. 38). Plaintiff promptly filed his Third Amended Complaint (“TAC”) maintaining the same six-claims alleged in the SAC but amending the prayer for relief. (See Doc. No. 39). B. Plaintiff’s Argument in Support of Motion As noted supra, Plaintiff’s primary concern for seeking appointment of interim class counsel is to protect the rights of the putative class in light of the proposed settlement pending the Wallack action, which Plaintiff submits is “a clandestine and collusive proposed reverse auction settlement.”2 (Id. at 7). A reverse auction occurs when “the defendant in a series of class actions picks the most ineffectual class lawyers to negotiate a settlement with the hope that the district court will approve a weak settlement that will preclude other claims against the defendant.” Reynolds v. Beneficial Nat'l Bank, 288 F.3d 277, 282 (7th Cir.2002). Such maneuvering “has an odor of mendacity about it.” Negrete v. Allianz Life Ins. Co. of N. Am., 523 F.3d 1091, 1099 (9th Cir. 2008). Plaintiff argues that the settlement in Wallack, if approved, will foreclose the right to relief pursued by the putative class in the instant action, including the meal and rest break violations recently validated

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Razo v. AT&T Mobility Services, LLC, (E.D. Cal. 2021).

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