2015-00180835-CU-OE

Olivia Angel vs. Pet Extreme, Inc.

Nature of Proceeding: Motion for Preliminary Approval of Class Action Settlement

Filed By: Aiwazian, Edwin

Plaintiffs Olivia Angel’s and Herman Parker’s unopposed motion for preliminary approval of class action settlement is granted. (Code of Civil Procedure § 382, California Rules of Court, Rule 3.769.)

The trial court has broad discretion to determine whether a proposed settlement in a class action is fair. (Rebney v. Wells Fargo Bank (1990) 220 Cal. App. 3rd 1117, 1138.)

Newberg on Class Actions (4th Ed.), the most authoritative treatise on class actions, discusses the process for approving the settlement of a class action. At § 11.24, “Procedure for Submitting Class Settlement for Approval,” Newberg describes the review at the preliminary stage as the submission by the parties of the essential terms of the agreement for informal review of the settlement papers by the Court. In reviewing a request for preliminary approval of a class action settlement, the Court’s task is to determine whether the proposed settlement is within the “range of reasonableness” that would warrant sending out a notice of the settlement and giving the class members the opportunity to object. (Newberg on Class Actions, 4th. Ed. (2002) § 11.25). In making its fairness determination, the Court should consider the relevant factors, such as the strength of the Plaintiffs’ case, the risk, expenses, complexity and likely duration of further litigation, the risk of maintaining class action status through trial, the amount offered in settlement, the extent of discovery completed and the stage of the proceedings, and the experience and views of counsel. (Dunk v. Ford Motor Co. (1996) 48 Cal.App.4th 1794, 1801.) Preliminary approval by the trial court is simply a conditional finding that the settlement appears to be within the range of acceptable settlements. (See, e.g. Kullar v. Footlocker Retail Inc. (2008) 168 Cal.App.4th 116.) Generally, the Court will presume the absence of fraud or collusion in the negotiation of the settlement unless evidence to the contrary is offered. In short, there is a presumption that negotiations were conducted in good faith. (Newberg, supra, at §11.51.)

The Court finds that the proposed settlement, reached after mediation, appears not to be the product of fraud or overreaching and appears to be fair, reasonable, adequate and in the best interests of the members of the putative class and thereby meets the criteria for preliminary approval. (Nordstrom Com. Cases (2010) 186 Cal.App.4th 576, 581.)

In this wage and hour action, Plaintiffs allege, among other things, that Defendant Pet Extreme, Inc. committed numerous wage and hour violations, failed to properly pay overtime and minimum wages, failed to provide proper meal and rest periods, failed to timely pay wages, failed to provide compliant wage statements, and failed to reimburse business expenses. Plaintiffs also allege that Defendant violated Bus. & Prof. Code § 17200 and seek penalties pursuant to PAGA. According to the proposed settlement reached after mediation, Defendant has agree to pay a gross settlement of $1,000,000 to “[a]ll current and former hourly-paid or non-exempt individuals employed by Defendant within the State of California at any time during the period from June 23, 2011 to July 5, 2017.” Payments will be allocated to class members on a pro rata basis based on the total work weeks. There are approximately 472 class members. The settlement also includes service awards of $8,000 to Plaintiff Olivia Angel and $5,000 to Herman Parker and allows Plaintiffs’ counsel to seek fees up to $350,000 (35% of gross settlement) and up to $35,000 in costs, all of which will be deducted from the gross settlement amount. The settlement also provides that class administration fees of up to $14,000 will be deducted from the gross settlement amount. The settlement also provides for a $11,250 payment to the California Labor and Workforce Development Agency in connection with the PAGA claim (75% of the $15,000 PAGA settlement).

The Court therefore preliminarily approves the settlement. The Court also approves the notice of settlement, provisionally certifies the class for settlement purposes, confirms Plaintiffs as the class representatives, and Plaintiffs’ counsel as class counsel.

The Court will sign the proposed order preliminarily approving the class action settlement.

The final approval hearing will take place on December 5, 2018 at 2:00 p.m. in this department. Plaintiffs shall file the motion for final approval pursuant to the Code of Civil Procedure.