Wells v. DCI Donor Services, Inc.

CourtDistrict Court, E.D. California
DecidedOctober 7, 2024
Docket2:21-cv-00994
StatusUnknown

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

Bluebook
Wells v. DCI Donor Services, Inc., (E.D. Cal. 2024).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 MARIAH WELLS, No. 2:21-cv-00994-CKD 12 Plaintiff, 13 v. ORDER 14 DCI DONOR SERVICES, INC., et al., 15 Defendants. 16 17 Plaintiff Mariah Wells brings this putative class action against Defendant DCI Donor 18 Services, Inc. (“DCIDS”) alleging class violations of the California Labor Code and California’s 19 Unfair Competition Law. ECF No. 10 (First Amended Complaint) at 21-31. On April 2, 2024, 20 Plaintiff moved for preliminary approval of class action settlement. ECF No. 30. Defendant did 21 not oppose the motion. The matter was taken under submission for a decision on the papers. ECF 22 No. 31. Following the consent of all parties, this case was reassigned to the Magistrate Judge for 23 all purposes. ECF No. 35. For the reasons discussed below, the Court GRANTS Plaintiff’s 24 motion for preliminary approval of class action settlement on the terms provided at the conclusion 25 of this order. 26 / / / 27 / / / 28 / / / 1 I. BACKGROUND 2 A. Factual and Procedural Background 3 On April 30, 2021, Plaintiff brought a putative class action in Sacramento County 4 Superior Court, on behalf of herself and similarly situated employees within the State of 5 California. ECF No. 5-1. On June 3, 2021, Defendant removed the action to the United States 6 District Court for the Eastern District of California and answered the complaint. See ECF Nos. 1, 7 9. On June 30, 2021, Plaintiff filed a First Amended Complaint (“FAC”) and added a cause of 8 action under the California Labor Code Private Attorneys General Act of 2004 (“PAGA”). ECF 9 No. 10. On July 21, 2021, Defendant filed an answer to the FAC. ECF No. 11. 10 Plaintiff alleges that she was previously employed within the State of California by 11 DCIDS as a non-exempt tissue recovery technician. ECF No. 10 at ¶¶ 15, 17. Plaintiff’s duties 12 included traveling to facilities within California harvesting tissue from human donors and safely 13 preserving that tissue. Id. at ¶ 17. Plaintiff was employed by DCIDS from September 30, 2019, 14 until her resignation on October 21, 2021. ECF No. 30-1 at 5. 15 Plaintiff alleges that from 2017 and still ongoing, DCIDS’ policies and practices violated 16 and continue to be in violation of California Labor Code and the California Business and 17 Professions Code section 17200, et seq. In addition, Plaintiff, on behalf of herself, and other non- 18 exempt employees in California, in addition to the claims set forth under the California Labor 19 Code and the California Business and Professions Code section 17200, et al., bring a PAGA 20 action and seek penalties for violations of the California Labor Code section 2699, et seq., 21 including without limitation to sections 204, 210, 226, 226.3, 226.7, 510, 512, 1174, 1185, 1194, 22 1194.2, 1197, 1197.1, 1198, 1198.5, 1199, 2802, 2804, applicable California Wage Order (Cal. 23 Code of Regs., tit. 8 § 11040), and others that may be applicable. ECF No. 10 at ¶¶ 5, 115. 24 Plaintiff’s asserted class action claims include: (1) failure to pay all minimum; (2) failure 25 to pay all overtime wages; (3) failure to provide rest periods and pay missed rest periods 26 premiums; (4) failure to provide meal periods and pay missed meal period premiums; (5) failure 27 to maintain accurate employment records; (6) failure to pay wages timely during employment; (7) 28 failure to indemnify all necessary business expenditures; (8) failure to furnish accurate itemized 1 wage statements; (9) violations of California’s Unfair Competition Law under Business and 2 Professions Code §§ 17200 et seq. ECF No. 10 at ¶ 4. The Class Members include “all 3 individuals who are or were employed by Defendant as per diem non-exempt employees in 4 California from April 30, 2017 through the earlier of March 1, 2023 or the date of preliminary 5 approval of the settlement”. ECF No. 30-2 at ¶ 3. The PAGA class includes “all individuals who 6 are or were employed by Defendant as per-diem non-exempt employees in California during the 7 PAGA” Period defined as from “April 23, 2020, through the earlier of March 1, 2023, or the date 8 of preliminary approval of the settlement.” Id. at ¶¶ 23, 27. 9 On May 2, 2022, the parties participated in a settlement conference before the 10 undersigned, which did not result in a settlement. ECF No. 23. After engaging in extensive 11 investigation and discovery, the parties executed a settlement agreement on July 28, 2023. ECF 12 No. 30-2 at 7. On April 2, 2024, Plaintiff moved for preliminary approval of the settlement. ECF 13 No. 30. The motion for preliminary approval of class action settlement (ECF No. 30) is now 14 before the Court. 15 B. Terms of the Proposed Settlement Agreement 16 The Settlement Agreement contains a release of all claims that are factually supported by 17 the FAC against Defendant by the proposed class, who are defined as “all individuals who are or 18 were employed by Defendant as per diem non-exempt employees in California from April 30, 19 2017 through the earlier of March 1, 2023 or the date of preliminary approval of the settlement”. 20 ECF No. 30-2, Exh. A (Settlement Agreement) at ¶ 3. The Agreement sets the PAGA period 21 “from April 23, 2020, through the earlier of March 1, 2023 or the date of preliminary approval of 22 the settlement.” Id. at ¶ 27. The proposed class consists of an estimated 40 class members. ECF 23 No. 30-1 at 1, 5. 24 In return for the release of claims from these individuals, the Settlement Agreement 25 provides for a non-reversionary gross settlement amount of $175,000. Settlement Agreement at ¶ 26 55(c)-(d). This amount represents, in part, a 75% discount of the potential damages for alleged 27 rest and meal break violations and derivative wage statement claims. Id. at ¶¶ 35, 39, 49. In 28 arguing the settlement is fair, counsel notes that Defendant’s defenses and the potentiality the 1 Court may find little to no harm caused by the alleged violations supported a significant departure 2 of the amount in damages for settlement purposes. Id. at ¶¶ 35, 39, 49, 53. 3 The Settlement Agreement proposes deducting from the $175,000 gross settlement 4 amount the following: 5 (a) Class representative incentive award of $5,000; 6 (b) Class counsel’s attorney fees of up to $52,500 (30% of the gross amount); 7 (c) Class counsel’s litigation costs of up to $5,000; 8 (d) Settlement Administrator costs of up to $4,850; and 9 (e) A PAGA payment of $9,375 to be paid to the Labor Workforce and Development Agency 10 (“LWDA”) out of an overall PAGA award of $12,500.1 11 Settlement Agreement at ¶¶ 55(c), (e)-(h). The above deductions, if fully approved, would yield a 12 Net Settlement Fund of $95,150. See id.; see also ECF Nos. 30-1 at 4; 30-2 at ¶ 64. 13 As proposed, the Net Settlement Fund would be distributed across all class members on a 14 pro rata basis based on the total number of pay periods worked by the class members during the 15 class period. Settlement Agreement at ¶¶ 55(e)(ii). The number of pay periods worked by the 16 class members will be determined by the Settlement Administrator based on employment records 17 to be provided by Defendant. Id. at ¶ 55(e)(iii). Plaintiff’s counsel estimates that the proposed 18 settlement will provide class members an average recovery of “approximately $2,388.” ECF No. 19 30-1 at 13.2 20 The Settlement Agreement requires the Settlement Administrator to mail out notices of 21 the class action settlement within 35 days of the Court’s preliminary approval. Settlement 22 Agreement at ¶ 97. It then allows 60 days from the mailing of the proposed Notice of Class 23 Action Settlement for class members to challenge dates of employment, workweeks, or submit 24 1 As discussed below, PAGA requires that 75% of PAGA penalties recovered go to the LWDA 25 and 25% to the aggrieved employees. Cal. Lab.

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Wells v. DCI Donor Services, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-v-dci-donor-services-inc-caed-2024.