Scott v. Blackstone Consulting, Inc.

CourtDistrict Court, S.D. California
DecidedJanuary 24, 2024
Docket3:21-cv-01470
StatusUnknown

This text of Scott v. Blackstone Consulting, Inc. (Scott v. Blackstone Consulting, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scott v. Blackstone Consulting, Inc., (S.D. Cal. 2024).

Opinion

1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 SOUTHERN DISTRICT OF CALIFORNIA 9 10 PENNY A. SCOTT, on behalf of herself Case No. 21-cv-1470-MMA-KSC and other aggrieved and similarly- 11 situated employees, et al., ORDER GRANTING MOTION FOR 12 FINAL APPROVAL OF CLASS Plaintiffs, ACTION SETTLEMENT 13 v. 14 [Doc. No. 43] BLACKSTONE CONSULTING, INC.,

15 Defendant. 16 17 18 Penny A. Scott, Tiffany Lockett, Tocashema Williams, Kawana Anderson, and 19 Ahmir Ringo (collectively, “Plaintiffs”) bring this putative wage and hour class action 20 against Defendant Blackstone Consulting, Inc. (“Defendant” or “BCI”). Plaintiffs move 21 for final approval of a class settlement pursuant to Federal Rule of Civil Procedure 23(e) 22 and seek an award of attorneys’ fees and costs pursuant to Rule 23(h), as well as a class 23 representative service award. See Doc. No. 43. Defendant does not oppose Plaintiff’s 24 motion, and the Court preliminarily approved the class settlement. See Doc. No. 42. On 25 January 17, 2024, the Court held a final approval hearing on these matters pursuant to 26 Federal Rule of Civil Procedure 23(e)(2). See Doc. No. 55. For the reasons set forth 27 below, the Court GRANTS Plaintiffs’ motion for final approval of class settlement 28 subject to a reduction of the class representative service award. 1 BACKGROUND 2 Defendant hires, employs, manages, and provides service employees to hospitals, 3 schools, universities, and industrial sites throughout California. See Doc. No. 39-1 at 7.1 4 Plaintiff Penny Scott was employed by BCI as a non-exempt Security Officer at the 5 Kaiser Permanente Zion Medical Center from December 2017 through March 2021. Id. 6 Plaintiff Scott initiated this putative class action on August 18, 2021. See Doc. No. 1. 7 On December 1, 2022, Scott and BCI participated in an all-day mediation, along 8 with four other aggrieved individuals: Kawana Anderson, Tiffany Lockett, Tocashema 9 Williams, and Ahmir Ringo. See Doc. No. 43-1 at 8. Anderson, Lockett, Williams, and 10 Ringo also worked as non-exempt Security Officers at a Kaiser Permanente facilities: 11 Anderson in Los Angeles from July 2019 through February 2022; Lockett in Riverside 12 from August 2021 through January 2022; Williams in Riverside from June 2021 through 13 January 2022; and Ringo in Los Angeles from April through September 2021. See Doc. 14 No. 39-1 at 7. All four also had pending actions in state court: Ahmir Ringo v. Blackstone 15 Consulting, Inc., et al., Case No. 22SMCV00066, pending in the Los Angeles Superior 16 Court; Tiffany Lockett and Tocashema Williams v. Blackstone Consulting, Inc., Case 17 No. CVRI2201443, pending in the Riverside Superior Court; Kawana Anderson v. 18 Blackstone Consulting, Inc. (PAGA only action), Case No. 22SMCV01667, pending in 19 the Los Angeles Superior Court; and Kawana Anderson v. Blackstone Consulting, Inc. 20 (Class action), Case No. 22STCV3 l 450, pending in the Los Angeles Superior Court. 21 The parties globally settled all five actions during that mediation. Thereafter, 22 Scott’s First Amended Complaint was amended by consent to include the four additional 23 Plaintiffs. See Doc. No. 34 (“Second Amended Complaint” or “SAC”). Plaintiffs allege 24 that BCI violated the California Labor Code in a variety of ways, including: (1) failure to 25 pay minimum, regular, and overtime wages; (2–3) failure to provide meal and rest 26 27 28 1 periods; (4) failure to provide accurate itemized wage statements; (5) failure to pay 2 vacation wages; (6) failure to timely pay wages to separated employees, and (7) failure to 3 reimburse business expenses. They also bring a (8) claim for violation of the Unfair 4 Competition Law, and eight (9–16) claims under the Private Attorneys General Act 5 (“PAGA”) for the Labor Code violations. 6 The parties executed the Settlement Agreement in March 2023. Doc. No. 43-3 7 (“Khoury Decl.”) Ex. 1. 8 THE SETTLEMENT AGREEMENT 9 The Settlement class (“Class”) consists of “all individuals who are or previously 10 were employed by Defendant in California as non-exempt employees working at Kaiser 11 Permanente facilities and hospitals in California at any time during the Class Period.” 12 Khoury Decl. Ex. 1. The Class Period is from May 21, 2017 to April 30, 2023. Id. 13 The gross settlement amount is $1,000,000 (the “Gross Settlement Amount”). The 14 parties have allocated $50,000 of the Gross Settlement Amount as penalties under PAGA 15 (“PAGA Payment”). This represents just 5% of the Gross Settlement Amount. 16 As to deductions, the parties agreed to the following: (1) Class Counsel fees up to 17 33% the Gross Settlement Amount, or $333,333.33; (2) Class Counsel litigation expenses 18 up to $25,000; (3) Class Representative Awards to each Plaintiff of $10,000, for a total of 19 $50,000; (4) Settlement Administration Expenses up to $15,000; and (5) 75% of the 20 PAGA Payment, or $37,500, to the California LWDA. Khoury Decl. Ex. 1. Plaintiffs 21 now ask the Court to approve the following: (1) Class Counsel fees in the amount of 22 $333,333.33, which is 33% the Gross Settlement Amount; (2) Class Counsel litigation 23 expenses of $15,204.08; (3) Class Representative Awards to each Plaintiff of $10,000, for 24 a total of $50,000; (4) Settlement Administration Expenses of $14,750; and (5) 75% of 25 the PAGA Payment, or $37,500, to the California LWDA. The Gross Settlement 26 Amount is defined as “non-reversionary” and therefore no portion of the Gross 27 Settlement Amount will revert to BCI. After deductions, the estimated Net Settlement 28 Amount is $536,712.59 (the “Net Settlement Amount”). 1 On September 15, 2023, the Settlement Administrator CPT Group, Inc. (“CPT”) 2 mailed out the class notices. See Doc. No. 43-6 ¶ 7. In November, CPT was contacted 3 by a self-identifying individual requesting to be included in the class, and notice was sent. 4 Doc. No. 51 (“Olivares Decl.”) ¶¶ 3–4. Seven (7) individuals submitted valid and timely 5 requests to exclude themselves from the Settlement, and four (4) notices were returned 6 undeliverable. Id. ¶¶ 5–7. Therefore, there are 1,312 participating Class Members. Id. 7 ¶ 9. 8 The Net Settlement Amount will be distributed proportionally based upon the total 9 workweeks during the Class Period. Id. ¶ 10. Individual settlement payments are 10 estimated to average $409.08, with the highest totalling $1,844.54. Id. 11 The Court has received no objections to the Settlement. 12 FINAL APPROVAL OF CLASS SETTLEMENT 13 A. Legal Standard 14 Federal Rule of Civil Procedure 23 provides that class actions may only be settled 15 with approval of the district court. Officers for Justice v. Civil Serv. Comm’n of City & 16 Cty. of San Francisco, 688 F.2d 615, 622 (9th Cir. 1982). However, 17 18 the court’s intrusion upon what is otherwise a private consensual agreement negotiated between the parties to a lawsuit must be limited to the extent 19 necessary to reach a reasoned judgment that the agreement is not the product 20 of fraud or overreaching by, or collusion between, the negotiating parties, and that the settlement, taken as a whole, is fair, reasonable and adequate to all 21 concerned. 22 23 Id. at 625. 24 A court considers several factors in determining whether a Settlement Agreement 25 is “fair, reasonable, and adequate” under Rule 23(e).

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Bluebook (online)
Scott v. Blackstone Consulting, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-v-blackstone-consulting-inc-casd-2024.