Sanchez v. Hearst Communications, Inc.

District Court, N.D. California·Decided December 19, 2022·No. 3:20-cv-05147·Unknown

Opinion

Jahan C. Sagafi (SBN 224887) Robert Ottinger (SBN 156825) OUTTEN & GOLDEN LLP Finn Dusenbery (admitted pro hac vice) One California Street, 12th Floor THE OTTINGER FIRM, P.C. San Francisco, CA 94111 535 Mission Street Tel: (415) 638-8800 San Francisco, CA 94133 Fax: (415) 638-8810 Tel: (415) 262-0096 E-mail: jsagafi@outtengolden.com Fax: (212) 571-0505 E-mail: robert@ottingerlaw.com Theanne Liu (admitted pro hac vice) E-mail: finn@ottingerlaw.com OUTTEN & GOLDEN LLP 685 Third Avenue, 25th Floor New York, NY 10017 Tel: (212) 245-1000 Fax: (646) 509-2060 E-mail: tliu@outtengolden.com

Attorneys for Plaintiffs, Proposed Class Members, and Aggrieved Employees

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA

PABLO SANCHEZ, and VIOLET Case No. 3:20-cv-05147-VC ALVAREZ, individually and on behalf of all others similarly situated, [PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT AND Plaintiffs, PROVIDING FOR NOTICE

v. Hearing Date: November 10, 2022 Time: 10:00 A.M. HEARST COMMUNICATIONS, INC., and Courtroom: 4 – 17th Floor DOES 1–10, inclusive, Judge: The Honorable Vince Chhabria Defendants. WHEREAS, the above-entitled action is pending before this Court (the “Action”); WHEREAS, the parties having made application, pursuant to Federal Rule of Civil Procedure 23(e), for an order approving the settlement of this Action, in accordance with the Agreement and Release dated December 1, 2022 (the “Agreement”), which, together with the exhibits annexed thereto, sets forth the terms and conditions for a proposed settlement of the Action and for dismissal of the entire Action with prejudice upon the terms and conditions set forth therein; and the Court having read and considered the Agreement and the exhibits annexed thereto; WHEREAS, all defined terms herein have the same meanings as set forth in the Agreement; WHEREAS, on December 15, 2022, a hearing was held on the motion of Plaintiffs to (1) conditionally certify the Settlement Class; (2) preliminarily approve the parties’ proposed class action settlement; (3) appoint Plaintiffs Pablo Sanchez and Violet Alvarez as Class Representatives, their counsel as Class counsel, and ILYM Group, Inc. as Settlement Administrator; (4) set the deadlines for filing written exclusions or objections to the Agreement; (5) approve the forms of notice to the Settlement Class and the claim form; and (6) schedule a hearing on the final approval of the Agreement for April 13, 2023 (the “Preliminary Approval Motion”). NOW, THEREFORE, IT IS HEREBY ORDERED: 1. Nature of Action. Plaintiffs allege that Defendant Hearst Communications, Inc. (“Hearst” or “Defendant”) misclassified Plaintiffs and Settlement Class Members as independent contractors, triggering derivative Labor Code violations, including by failing to compensate Settlement Class Members for all hours worked, failing to compensate piece rate employees for rest and recovery periods and other non-productive time, failure to provide Settlement Class Members with meal periods and rest periods, failure to provide Settlement Class Members with minimum and overtime wages, failing to maintain accurate and complete employment records, failure to provide Settlement Class Members with accurate, itemized wage statements, failure to reimburse Settlement Class Members for business expenses, and failure to timely pay all wage earned. Plaintiffs allege that these acts also violate the California Unfair Competition Law. In addition, Plaintiff Sanchez also seeks PAGA penalties on behalf of himself and other aggrieved employees for resulting PAGA violations. Hearst disputes and denies all of Plaintiffs’ claims and denies that this matter may be certified as a class or representative action under either Rule 23 or PAGA for purposes of trial. Hearst also contends that it has fully complied with all applicable laws at issue in this matter. The Court has not rendered an opinion on the merits of any of Plaintiffs’ claims. 2. Settlement. Plaintiffs Pablo Sanchez and Violet Alvarez (“Plaintiffs”), individually and as class representatives on behalf of the Class, and Hearst (collectively the “Parties”) have negotiated a potential settlement to the Action to avoid the expense, uncertainties, and burden of protracted litigation, and to resolve the Released Claims (as defined in the Agreement) against Hearst and the Releasees. Review. At the preliminary approval stage, “district courts should review class action settlements just as carefully . . . as they do at the final stage.” Cotter v. Lyft, Inc., 193 F. Supp. 3d 1030, 1036-37 (N.D. Cal. 2016); see also Hunt v. VEP Healthcare, Inc., No. 16-cv-04790-VC, 2017 U.S. Dist. LEXIS 139700 (N.D. Cal. Aug. 22, 2017); Eddings v. DS Services of America, Inc., No. 15-cv- 02576-VC, 2016 U.S. Dist. LEXIS 84151 (N.D. Cal. May 20, 2016). “The criteria for class certification are applied differently in litigation classes and settlement classes. In deciding whether to certify a litigation class, a district court must be concerned with manageability at trial. However, such manageability is not a concern in certifying a settlement class where, by definition, there will be no trial.” In re Hyundai & Kia Fuel Econ. Litig., 926 F.3d 539, 556– 57 (9th Cir. 2019). In deciding whether to certify a litigation class, a district court must be concerned with manageability at trial. However, such manageability is not a concern in certifying a settlement class where, by definition, there will be no trial.”). Indeed, courts approve settlement classes even after class certification was denied for trial purposes. See, e.g., Romero v. Securus Technology, Inc., 16-cv- 1283 JM (MDD), 2020 U.S. Dist. LEXIS 104857, at *4-5, *21-22 (S.D. Cal. June 16, 2020); Pena v. Taylor Farms Pac., Inc., 2:13-cv-01282-KJM-AC, 2020 U.S. Dist. LEXIS 205468, at *2-3, *24 (E.D. Cal. Nov. 2, 2020). The inquiry at preliminary approval “should be whether the settlement is ‘fair, reasonable, and adequate.’” Id.; see also Hanlon v. Chrysler Corp., 150 F.3d 1011, 1026 (9th Cir. 1998). When considering whether to grant approval, courts often “put a good deal of stock in the product of an arms- length, non-collusive, negotiated resolution.” Rodriguez v. W. Publ’g Corp., 563 F.3d 948, 965 (9th Cir. 2009). Courts may also assess the following factors, which are assessed in greater detail at final approval. These factors are: “the strength of the plaintiffs’ case,” “the risk, expense, complexity, and likely duration of further litigation,” “the risk of maintaining class action status throughout the trial,” “the amount offered in settlement,” “the extent of discovery completed and the stage of the proceedings,” “the experience and views of counsel,” “the presence of a governmental participant,” and “the reaction of the Settlement Class Members to the proposed settlement.” Hanlon, 150 F.3d at 1026. PAGA settlements are reviewed under a comparable standard. The LWDA has provided guidance for PAGA settlement approval, mirroring the standard for evaluating class action settlements. See O’Connor v. Uber Techs., Inc., 201 F. Supp. 3d 1110, 1134-35 (N.D. Cal. 2016); see also Moniz v. Adecco USA, Inc., 72 Cal. App. 5th 56, 77 (2021) (“a trial court should evaluate a PAGA settlement to determine whether it is fair, reasonable, and adequate in view of PAGA’s purposes to remediate present labor law violations, deter future ones, and to maximize enforcement of state labor laws.”). Courts mu

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

Sanchez v. Hearst Communications, Inc., (N.D. Cal. 2022).

Sanchez v. Hearst Communications, Inc. (Sanchez v. Hearst Communications, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Rodriguez v. West Publishing Corp.
563 F.3d 948 (Ninth Circuit, 2009)
Caitlin Ahearn v. Hyundai Motor America
926 F.3d 539 (Ninth Circuit, 2019)
Hanlon v. Chrysler Corp.
150 F.3d 1011 (Ninth Circuit, 1998)
Cotter v. Lyft, Inc.
193 F. Supp. 3d 1030 (N.D. California, 2016)
O'Connor v. Uber Technologies, Inc.
201 F. Supp. 3d 1110 (N.D. California, 2016)