Robles v. Comtrak Logistics, Inc.

CourtDistrict Court, W.D. Tennessee
DecidedDecember 14, 2022
Docket2:15-cv-02228
StatusUnknown

This text of Robles v. Comtrak Logistics, Inc. (Robles v. Comtrak Logistics, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robles v. Comtrak Logistics, Inc., (W.D. Tenn. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TENNESSEE WESTERN DIVISION

) SALVADOR ROBLES, JORGE ) AVALOS, JOSE MARQUEZ, and ) CARLOS BARILLAS, individually ) and on behalf of others ) similarly situated, ) ) Plaintiffs, ) ) v. ) No. 15-cv-2228 ) COMTRAK LOGISTICS, INC., HUB ) GROUP INC., HUB GROUP ) TRUCKING INC., and DOES 1 ) through 10, ) ) Defendants. ) ) ORDER GRANTING MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT AND GRANTING MOTION FOR ATTORNEYS’ FEES, COSTS, AND INCENTIVE AWARDS This is a class action in which it is alleged that Defendants, who operate a shipping and trucking business, misclassified their drivers as independent contractors in violation of California law. The parties came to a settlement, and this Court granted preliminary approval on July 21, 2022. (ECF No. 183.) Representative Plaintiffs Salvador Robles, Jorge Avalos, Jose Marquez, and Carlos Barillas filed their Unopposed Motion for Final Approval of Class Action Settlement (“Final Approval Motion”) on November 3, 2022. (ECF No. 186.) On the same day, Representative Plaintiffs filed their Unopposed Motion for Approval of Attorneys’ Fees, Costs, and Service Payments from Class Action Settlement (“Fees Motion”). (ECF No. 187.) The Court held a fairness hearing to consider the motions on November 17, 2022. (ECF No. 188.) For the following reasons, the Motions are GRANTED. I. Factual and Procedural Background A. Plaintiffs’ Class Action Labor and Employment Claims

1. The Pleadings and Defendants’ Motions to Dismiss Defendants hired California-based drivers for their freight shipping and trucking business and classified those drivers as independent contractors. (ECF No. 57 at ¶ 5.) Representative Plaintiff Robles filed this lawsuit against Defendant Comtrak Logistics, Inc. (“Comtrak”) on January 25, 2013, in the United States District Court for the Eastern District of California, alleging essentially that Comtrak should have classified its drivers as employees. (ECF No. 1.) Robles alleged that, because the drivers were misclassified, they are owed considerable compensation for unpaid wages, missed meal and rest breaks,

unreimbursed business expenses, and various other related statutory penalties and damages. (See id.) On May 6, 2013, Robles filed his First Amended Complaint (“FAC”) against Comtrak addressing issues raised by Defendants in a motion to dismiss. (ECF No. 24.) On June 3, 2013, Defendants filed a renewed motion to dismiss directed solely to whether the Federal Aviation Administration Authorization Act of 1994 (“FAAAA”) preempted California’s Labor Code with respect to interstate drivers in California. (ECF No. 25.) The renewed motion to dismiss was fully briefed by the parties. On August 5, 2013, the Eastern District of California stayed all proceedings pending a ruling from the Ninth Circuit Court of Appeals on either of two separate cases then before the

appellate court addressing the same FAAAA preemption issues raised in the motion to dismiss. (ECF No. 36.) Both sides thereafter regularly submitted supplemental briefs addressing pertinent issues that were evolving while the parties were awaiting the Ninth Circuit’s decision on FAAAA preemption. (ECF Nos. 29-36, 43, 50-53.) On September 8, 2014, the Ninth Circuit handed down Dilts v. Penske Logistics, LLC, 769 F.3d 637, 640 (9th Cir. 2014) (“Dilts”). The ruling largely favored plaintiff truck drivers with similar misclassification claims and denied federal preemption. Id. Following Dilts, on December 19, 2014, the Court

denied Defendants’ motion to dismiss the FAC. (ECF No. 54.) 2. Comtrak Settles with Individual Putative Class Members On about August 27, 2014 -- six weeks after Dilts, and before the district court issued its ruling on the motion to dismiss -- Comtrak began a campaign of making individual settlement offers to putative class members. (ECF No. 192 at ¶ 6.) The individual settlement agreements and releases (“Individual Settlement(s)”) included consideration ranging from $3,000 to $45,000 based on the driver’s tenure with Comtrak. (Id.) The next day, Representative Plaintiffs filed an ex parte application to enjoin Comtrak’s Individual Settlement efforts.

(ECF No. 44.) The court denied that request. (ECF No. 49.) Over a period of about a week, Comtrak was able to reach settlements with 632 of the 683 class members and paid a total of $9,087,000 to those 632 drivers, an average settlement payment of $14,378 per driver. (ECF No. 182 at 3.) 3. Comtrak’s Motion to Change Venue On January 16, 2015, Comtrak moved to change venue under a venue-selection clause in the governing contracts. (ECF No. 59.) On April 3, 2015, the Eastern District of California granted Comtrak’s motion to transfer the case to the Western District of Tennessee. (ECF Nos. 66, 67.)

4. The Second Amended Complaint & Defendants’ Motion to Dismiss On May 15, 2015, Representative Plaintiffs filed their Second Amended Complaint (“SAC”), which added allegations that the Individual Settlements were improper and should be invalidated. (ECF No. 86.) Representative Plaintiffs pled that they brought this action on behalf of “[a]ll current and former California-based1 truck drivers for Defendants, at any time from January 2009, to the present (the ‘Class Period’) and who were classified by Defendants as independent contractors” (the “Class Members”). (ECF No. 86 at ¶ 142.) On June 8, 2015, Defendants filed a motion to dismiss the SAC. (ECF No. 91.) In their motion, Defendants: (1) again raised

FAAAA preemption issues; (2) argued that Tennessee law should govern; (3) asserted that none of the California state law claims could survive under Tennessee law; and (4) asserted that the Individual Settlements were enforceable and barred the “settlement class” from proceeding. (ECF Nos. 91, 92.) On July 19, 2016, this Court applied California law, denied most of the challenges raised in the motion to dismiss, and ruled that the 632 Individual Settlements were valid and enforceable. (ECF No. 110.) On August 11, 2016, Representative Plaintiffs filed a motion for reconsideration of one particular issue, which this Court denied on July 2, 2018. (ECF Nos. 113, 125.)

1 “California-based” refers to drivers “(i) who had a residential address in California at any time during the Class Period; and/or (ii) who were assigned or associated with a terminal in California at any time during the Class Period.” (ECF No. 86 at ¶ 142.) The phrase “assigned or associated with a terminal” is defined to include “any and all Drivers listed in Defendants’ database in connection with a terminal.” (Id.) 5. The Operative Third Amended Complaint On March 16, 2022, Plaintiffs filed their operative Third Amended Complaint (“TAC”) with leave of Court to: (i) amend one of the subclass definitions to conform to developments in the case since the filing of the SAC, and (ii) to add a fourth Representative Plaintiff, Carlos Barillas, because Barillas had

filed his own lawsuit against Comtrak years ago but had dismissed it to be part of this case. (See ECF Nos. 175-177.) The class definition remained unchanged from the definition in the SAC, but the subclasses were amended to include: (1) the Robles Subclass, which is defined as all Class Members who did not execute releases of their claims in this action on or around and after August 27, 2014; and (2) the Settlement-Release Subclass (also referred to as the “Avalos/Marquez Subclass”), which is defined as all Class Members who executed releases of their claims in this action on or around and after August 27, 2014. (ECF No. 177 at ¶¶ 143-144.)

B.

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Robles v. Comtrak Logistics, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/robles-v-comtrak-logistics-inc-tnwd-2022.