2017-00221627-CU-OE

Juan Garcia vs. Royal Plywood Company, LLC

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

Filed By: Shimoda, Galen T.

Plaintiff Juan Garcia’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, Plaintiff alleges, among other things, that Defendants

Royal Plywood Company, LLC, et al. committed numerous wage and hour violations,
failed to provide proper meal and rest periods, failed to pay premiums for any missed
meal and rest periods and failed to provide compliant wage statements. Plaintiff also
alleges that Defendants violated Bus. & Prof. Code § 17200 and seek penalties
pursuant to PAGA. According to the proposed settlement reached after mediation,
Defendants have agreed to pay a gross settlement of $525,000 to “[a]ll individuals who

have, or continue to, perform work for Defendants within California as non-exempt,
hourly employees between November 1, 2013 and the date the Court enters an order

preliminarily approving the class settlement.” Payments will be allocated to class
members on a pro rata basis based on the total workweeks worked. There are
approximately 181 class members. The settlement also includes a $15,000 service
award to Plaintiff Juan Garcia and allows Plaintiff’s counsel to seek fees up to
$183,750 (35% of the gross settlement) and up to $15,000 in costs, all of which will be

deducted from the gross settlement amount. The settlement also provides that class
administration fees of up to $10,000 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 preliminary approves the settlement. The Court also approves the notice of settlement, provisionally certifies the class for settlement purposes, confirms Plaintiff as the class representative, and Plaintiff’s 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 February 8, 2019 at 2:00 p.m. in this department. Plaintiff shall file the motion for final approval pursuant to the Code of Civil Procedure.

The minute order is effective immediately. No formal order pursuant to CRC Rule 3.1312 or further notice is required.