2012-00126884-CU-OE

Anatoli Romanov vs. Westward Hospitality Management LLC

Nature of Proceeding: Motion for Preliminary Approval of Class Settlement

Filed By: Greene, Andrew M.

Plaintiffs’ Motion for Preliminary Approval of Class Settlement is based on the
stipulation of all parties and is GRANTED.

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

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, 3d Ed.
(1992) § 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. A presumption of fairness
in a class action settlement agreement exists where: (1) the settlement is reached
through arm’s length bargaining; (2) investigation and discovery are sufficient to allow
counsel and the court to act intelligently; (3) counsel is experienced in similar litigation;
and (4) the percentage of objectors is small. Dunk, supra, at p. 1802, citing Newberg &
Conte, Newberg on Class Actions (3d ed. 1992) § 11.41, p. 1 1-91. Fairness is also
presumed where the settlement follows a formal mediation, especially where the
mediator is a respected member of the legal community, and recommends the
settlement. Id.

In this wage and hour class action, filed June 22, 2012, plaintiffs allege that defendants
violated sections of California wage and hour laws in connection with their policies
regarding payment of hourly employees.

Plaintiffs have conducted discovery, reviewed documents produced by defendants,
interviewed witnesses and brought discovery motions. Following an all-day mediation
with Judge Sabraw (Ret.), the parties have arrived at a Stipulated Settlement.

The Settlement Class (of approximately 500 members) is defined as “each person
employed by Defendants or its affiliates in California during the Class Period (from
June 22, 2008 through Preliminary Approval) who earned or was paid a ‘Service
Charge’, including a banquet service charge, banquet tips, room service charge, or
restaurant service charges, and who earned and received one or more overtime
payment(s) during their employment”.

The proposed Settlement Fund is in a total maximum amount to be paid by Westmont
of $385,000 (the “Settlement Fund”). The Settlement Fund shall cover the court-
approved sums for the Settlement Payments to Class Members, Class Counsel’s
attorneys’ fees and costs, enhancement award to Named Plaintiff, the employer’s
share of applicable FICA and FUTA payroll taxes on Settlement Payments made to
Class Members, and claims administration fees and costs. No interest shall accrue on
the Settlement Fund from the present time until the last payment is made.

The funds are to be allocated (1) for an award of attorneys’ fees compensating Class
Counsel for its representation of the Class in this matter in an amount not exceed 1/3
(one-third) of the Settlement Fund, equal to approximately $128,333, (2) the entire
amount actual litigation costs and expenses in an amount not to exceed Twenty
Thousand Dollars ($20,000), (3) claims administration fees and costs incurred by
Simpluris, the Parties’ agreed-to claims administrator, in an amount not to exceed
Twenty-Five Thousand Dollars ($25,000), (4) and an Enhancement Award to the
named plaintiff in an amount not to exceed Five Thousand Dollars ($5,000). These
amounts, together with the employers’ share of FICA and FUTA taxes, on Settlement
Payments made to Class Members, are to be paid out of the Settlement Fund.

Based upon the record before it, the Court approves the appointment of the
Administrator and orders that (1) The Administrator shall send the Notice on or before
April 7, 2014, or as soon thereafter as is practicable; (2) All Exclusion Forms must be
sent to the Administrator, postmarked by May 12, 2014 (35 days after original mailing),
or, for those class members whose original mailing is returned as undeliverable by
May 22, 2014 (45 days from original mailing); (3) Objections must be filed with the
Court and received by the Administrator by May 12, 2014 (35 days after original
mailing), or, for those class members whose original mailing is returned as
undeliverable by May 22, 2014 (45 days from original mailing and (4) The Final
Approval Hearing shall be set for June 2, 2014, or as soon thereafter as is practicable.

The Court will sign the formal order provided.