Stonehocker v. Kindred Healthcare Operating, LLC

CourtDistrict Court, N.D. California
DecidedApril 27, 2021
Docket4:19-cv-02494
StatusUnknown

This text of Stonehocker v. Kindred Healthcare Operating, LLC (Stonehocker v. Kindred Healthcare Operating, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stonehocker v. Kindred Healthcare Operating, LLC, (N.D. Cal. 2021).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 SARAH STONEHOCKER, CASE NO. 19-CV-2494-YGR

8 Plaintiff, ORDER GRANTING MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT; 9 vs. GRANTING IN PART MOTION FOR ATTORNEY’S FEES, COSTS, AND SERVICE 10 KINDRED HEALTHCARE OPERATING LLC, AWARDS; JUDGMENT ET AL., 11 RE: Dkt. Nos. 65, 66 Defendants. 12 13 The Court previously granted a motion for preliminary approval of the Class Action 14 Settlement in this matter on November 24, 2020. (Modified Order Granting Preliminary Approval 15 of Class Action Settlement and Order Approving PAGA Settlement (“Preliminary Approval Order”), 16 Dkt. No. 64.) As directed by the Preliminary Approval Order, on January 15, 2021, plaintiff filed 17 her unopposed motion for attorney’s fees, costs, and service award. (Dkt. No. 65.) Thereafter, 18 plaintiff filed her unopposed motion for final settlement approval on March 2, 2021. (Dkt. No. 66.) 19 The Court held a hearing on April 6, 2020. 20 Having considered the motion briefing, the terms of the Settlement Agreement, the 21 arguments of counsel, and the other matters on file in this action, the Court GRANTS the motion for 22 final approval. The Court finds the settlement fair, adequate, and reasonable. The provisional 23 appointments of the class representative and class counsel are confirmed. 24 The motion for attorney’s fees, costs, and service award is GRANTED IN PART. The Court 25 ORDERS that class counsel shall be paid $498,750.00 in attorney’s fees and $12,140.18 in litigation 26 costs and that class representative and named plaintiff Sarah Stonehocker shall be paid a $5,000.00 27 incentive award. 1 I. BACKGROUND 2 A. Procedural History 3 Plaintiff filed the putative class action complaint on February 14, 2019, alleging that 4 defendant Kindred Healthcare Operating LLC’s strict productivity standards resulted in plaintiff and 5 other individuals clocking in hours for which they were not paid. (Dkt. No. 1-5.) Plaintiff’s then- 6 operative amended complaint alleges claims for (1) failure to pay for all hours worked; (2) failure to 7 pay wages when due; and (3) unfair business practices under the California Unfair Competition Law 8 (Cal. Bus. & Prof. Code § 17200, et seq.). (Id.) Defendant denied plaintiff’s allegations in their 9 entirety. (Dkt. No. 1-7.) 10 Defendant filed an early motion for summary judgment on grounds that (i) plaintiff was 11 bound by the judgment and dismissal entered in Cashon v. Kindred Healthcare Operating, Inc., et 12 al., Case No. 3:16-cv-04889-RS (“Cashon”), and thus, plaintiff’s claims were barred by the doctrine 13 of claim preclusion; and (ii) plaintiff released her right to bring the claims asserted in this action 14 through the Class Action Settlement Agreement and Stipulation approved by the court in Cashon. 15 (Dkt. No. 18.) The Court denied this motion on September 19, 2019. (Dkt. No. 30.) 16 Thereafter, the parties reached a settlement prior to class certification with the assistance of 17 experienced mediator Tripper Ortman. The Settlement Agreement, attached hereto as Exhibit 1, the 18 terms of which are incorporated herein unless specifically stated otherwise, defines the class as:

19 [A]ll persons who are or were employed by one or more Defendants as non- 20 exempt Skilled Clinicians to work at a skilled nursing facility in California at any time from February 14, 2015 through September 1, 2020. 21 22 (the “Settlement Class”). (Agreement ¶ 2.6.) “Skilled Clinicians” are all individuals who have held 23 one or more positions in the job title list attached as Exhibit A to the Settlement Agreement. (Id. ¶ 24 2.52.) 25 For settlement purposes, plaintiff filed the second amended complaint, adding defendants 26 Kindred Rehab Services LLC, Kindred Rehab Services, Inc., RehabCare Group East LLC, 27 RehabCare Group East, Inc., American VitalCare LLC, and RehabCare Group of California LLC. 1 accurate wage statements; (3) failure to provide compliant meal periods; (4) failure to provide 2 compliant rest periods; (5) failure to pay wages when due; (6) failure to keep accurate employment 3 records; (7) unlawful, unfair, and/or fraudulent business practices under the California Unfair 4 Competition Law (“UCL”); and (8) penalties pursuant to the Labor Code Private Attorneys General 5 Act of 2004, as amended (“PAGA”) (Lab. Code §§ 2698 et seq.). (Dkt. No. 59.) 6 In its Preliminary Approval Order, the Court conditionally certified the Settlement Class and 7 provisionally appointed Matthew Carlson as Class Counsel, plaintiff Sarah Stonehocker as class 8 representative, and Simpluris Inc. as the class administrator. (Dkt. No. 64 ¶¶ 4–6.) 9 B. Terms of the Settlement Agreement 10 Under the terms of the Settlement Agreement, defendant will pay $1,995,000.00 into a 11 common settlement fund, without admitting liability. This amount includes attorney’s fees and 12 costs, the cost of class notice and settlement administration, the class representative’s service award, 13 and PAGA payment. The PAGA Payment was defined as:

14 [A]n amount of One Hundred Thirty Thousand Dollars ($130,000) shall be 15 allocated as the PAGA Payment. Ninety-Seven Thousand Five Hundred Dollars ($97,500.00), which is seventy-five percent (75%) of the PAGA Payment, shall 16 be paid to the [California Labor and Workforce Development Agency]. The remaining Thirty-Two Thousand Five Hundred Dollars ($32,500.00), which is 17 twenty-five percent (25%) of the PAGA Payment, shall be distributed to the PAGA Releasees, based on the number of PAGA Pay Periods worked by a PAGA 18 Releasee, as a fraction of the total PAGA Pay Periods worked by al PAGA 19 Releasees. . . .

20 (Agreement ¶ 3.1(c).) However, the fund is exclusive of the employer’s share of payroll taxes. 21 1. Attorney’s Fees and Costs 22 Under the Settlement Agreement, Plaintiff’s counsel agreed to seek up to $665,000.00 in 23 attorney’s fees and no more than $15,000.00 in litigation costs. The common settlement fund also 24 includes a provision for $22,500.00 in settlement administration costs; and up to $5,000.00 to be 25 paid to plaintiff Sarah Stonehocker as a service award in exchange for a general release of all claims 26 against defendants. 27 // 1 2. Class Relief 2 After deductions from the common fund for fees, costs, and service incentive awards as well 3 as the administration expenses, approximately $1,326,609.82 will remain to be distributed among the 4 participating class members.1 Class members will be paid based on the number of pay periods 5 worked as a fraction of the total class pay periods worked by all class members. Dividing this 6 amount across the 2,260 participating class members yields an average recovery of approximately 7 $586.99 per class member. The Agreement provides that no amount will revert to defendant. 8 3. Cy Pres/Remainder 9 The Settlement Agreement provides that any residue funds will be distributed to the Court- 10 approved cy pres beneficiary First Responders Children’s Foundation Covid-19 Emergency 11 Response Fund, with 95% of cy pres funds to benefit clinicians at skilled nursing facilities in 12 California and 5% of cy pres funds to benefit clinicians at skilled nursing facilities in states other 13 than California. 14 4. Class Member Release 15 In exchange for the settlement awards, class members will release claims against defendants 16 as set forth in the Settlement Agreement at sections 4.3 and 4.4. 17 C. Class Notice and Claims Administration 18 Pursuant to the Settlement Agreement, the Court appointed Simpluris to administer the fund 19 and to contact the class members in the manner set forth therein and including the attachments 20 contained within the Preliminary Approval Order.

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Bluebook (online)
Stonehocker v. Kindred Healthcare Operating, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stonehocker-v-kindred-healthcare-operating-llc-cand-2021.