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  • JUSTIN LIE, on behalf of himself and all others similarly situated vs BENIHANA INTERNATIONAL, INC., a Delaware CorporationComplex Civil Unlimited document preview
  • JUSTIN LIE, on behalf of himself and all others similarly situated vs BENIHANA INTERNATIONAL, INC., a Delaware CorporationComplex Civil Unlimited document preview
  • JUSTIN LIE, on behalf of himself and all others similarly situated vs BENIHANA INTERNATIONAL, INC., a Delaware CorporationComplex Civil Unlimited document preview
  • JUSTIN LIE, on behalf of himself and all others similarly situated vs BENIHANA INTERNATIONAL, INC., a Delaware CorporationComplex Civil Unlimited document preview
  • JUSTIN LIE, on behalf of himself and all others similarly situated vs BENIHANA INTERNATIONAL, INC., a Delaware CorporationComplex Civil Unlimited document preview
  • JUSTIN LIE, on behalf of himself and all others similarly situated vs BENIHANA INTERNATIONAL, INC., a Delaware CorporationComplex Civil Unlimited document preview
  • JUSTIN LIE, on behalf of himself and all others similarly situated vs BENIHANA INTERNATIONAL, INC., a Delaware CorporationComplex Civil Unlimited document preview
  • JUSTIN LIE, on behalf of himself and all others similarly situated vs BENIHANA INTERNATIONAL, INC., a Delaware CorporationComplex Civil Unlimited document preview
						
                                

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Constance E. Norton, Bar No. 146365 cnorton@littler.com LITTLER MENDELSON P.C. 333 Bush Street 34th Floor San Francisco, California 94104 Telephone: 415.433.1940 Fax No.: 415.399.8490 Chad D. Greeson, Bar No. 251928 cgreeson@littler.com LITTLER MENDELSON P.C. 1255 Treat Boulevard Suite 600 Walnut Creek, California 94597 Telephone: 925.927.4507 Fax No.: 925.946.9809 Attorneys for Defendant BENIHANA INTERNATIONAL, INC. (Additional Counsel on Following Page) Electronically by Superior Court of California ON 5/31/2022 By /s/ Vanessa Jimenez Deputy Clerk SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN MATEO JUSTIN LIE, individually and on behalf of himself and all others similarly situated, Plaintiff, Vv. BENIHANA INTERNATIONAL, INC., a Delaware Corporation; and DOES 1-50, inclusive, Defendants. Mit Mit Case No. 21-CIV-00153 APPENDIX OF FEDERAL CASES CITED IN SUPPORT OF JOINT NOTICE OF MOTION AND MOTION TO APPROVE PAGA SETTLEME AND DISMISSAL OF PAGA ACTION ASSIGNED FOR ALL PURPOSES TO JUDGE NANCY FINEMAN, DEPT. 4 Hearing Date: July 5, 2022 Time: 2:00 p.m. Dept.: 4CRN Complaint Filed: Jan. 12, 2021 First Amd. Compl. Filed: Dec. 5, 2021 Second Amd. Comp. Filed: Jan. 18, 2022 APPENDIX OF FEDERAL CASES CITED IN SUPPORT OF JOINT NOTICE OF MOTION AND MOTION TO APPROVE PAGA SETTLEMENT AND DISMISSAL OF PAGA ACTION1 || James R. Hawkins (SBN 192925) Christina M. Lucio (SBN 253677) 2 || JAMES HAWKINS APLC 9880 Research Drive 3 |) Suite 200 Irvine, California 92618 4 || Telephone: (949) 387-7200 Facismile: (949) 387-6676 5 || James@Jameshawkinsaple.com Christina@Jameshawkinsaplic.com 6 Attorneys for Plaintiff JUSTIN LIE, 7 || on behalf of himself and all other similarly situated 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 APPENDIX OF FEDERAL CASES CITED IN SUPPORT OF JOINT NOTICE OF MOTION AND MOTION TO APPROVE PAGA SETTLEMENT AND DISMISSAL OF PAGA ACTION1 Pursuant to California Rules of Court, Rule 3.1113(i), Plaintiff Justin Lie (“Plaintiff”) and 2 || Defendant Benihana International, Inc. (“Defendant” or “Benihana’’) (collectively, the “Parties”) 3 || respectfully submit the following Appendix of Federal Authorities in support of their Joint Motion 4 || to Approve PAGA Settlement and Dismissal of PAGA action. 5 Case Exhibit 6 Wanderer v. Kiewit Infrastructure West Co., 2020 U.S. Dist. LEXIS 158189 (E.D. Cal. Aug. 31, 2020) 1 7 Chamberlain v. Baker Hughes, a GE Co., LLC, 2020 WL 4350207 (E.D. Cal. July 29, 2020) 2 8 Rincon v. W. Coast Tomato Growers, LLC, 2018 U.S. Dist. LEXIS 22886 6 (S.D. Cal. Feb. 12, 2018) 3 9 Hanlon v. Chrysler Corp., 150 F.3d 1011 (9th Cir. 1998) 4 10 Patel v. Nike Retail Servs., 2019 U.S. Dist. LEXIS 77988 (N.D. Cal. May 8, 2019) 5 I O’Connor v. Uber Techs., Inc., 201 F. Supp. 3d 1110 (N.D. Cal. 2016) 6 12 Titus v. McLane Foodservice, Inc., 2016 WL 4797497 (E.D. Cal. Sept. 14, 2016) 7 13 Ramirez v. C and J Well Service, Inc., 2020 WL 5846464 (C.D. Cal., Mar. 27, 2020) 8 14 Segal v. Aquent LLC, 2018 WL 4599754 (S.D. Cal. Sept. 24, 2018) 9 15 Alcala v. Meyer Logistics, Inc., 2019 U.S. Dist. LEXIS 166879 (C.D. Cal. June 17, 2019) 10 16 Bernal v. Graham Packaging Pet Techs, Inc., 2021 U.S. Dist. LEXIS 86393 (E.D. Cal. May 5, 2021) 11 17 1g || DATED: May 26, 2022 LITTLER MENDELSON, P.C. 19 ° wb Daft 21 By: Cb Constance E. Norton 22 Chad D. Greeson 23 Attorneys for Defendant BENIHANA 24 INTERNATIONAL, INC. 25 26 4862-2420-8416.1 / 062447-1174 27 28 3 oan APPENDIX OF FEDERAL CASES CITED IN SUPPORT OF JOINT NOTICE OF MOTION AND MOTION TO APPROVE PAGA SETTLEMENT AND DISMISSAL OF PAGA ACTIONExhibit 18 Cited As of: May 18, 2022 12:05 AM Z Wanderer v. Kiewit Infrastructure West Co. United States District Court for the Eastern District of California August 28, 2020, Decided; August 31, 2020, Filed Case No. 2:18-cv-02898 WBS-DB Reporter 2020 U.S. Dist. LEXIS 158189 *; 2020 WL 5107618 STEPHEN WANDERER, as an individual and in his representative capacity, Plaintiff, v. KIEWIT INFRASTRUCTURE WEST CO.; and DOES 1 through 25, inclusive, Defendants. LexisNexis® Headnotes Labor & Employment Law > Wage & Hour Laws > Remedies > Private Suits HN1[] Remedies, Private Suits A Private Attomeys' General Act (PAGA) action is a statutory action in which the penalties available are measured by the number of Labor Code violations committed by the employer. The employees bringing the action do so as agents or proxies of the state's labor law enforcement agencies. Any agreement to waive PAGA claims is an agreement to limit the penalties plaintiff- employees may recover on behalf of the State. Because a settlement of PAGA claims settles claims that could otherwise be brought by the State, the trial court must review and approve any settlement of PAGA claims. Lab. Code, § 2699(1)(2). Before the trial court can review and approve of any settlement of PAGA claims, the proposed settlement shall be submitted to the California Labor Workforce Development A gency (LWDA) at the same time that it is submitted to the court. Business & Corporate Compliance >... > Wage & Hour Laws > Administrative Proceedings > Rulemaking Authority Labor & Employment Law > Wage & Hour Laws > Remedies > Private Suits HN2[%] Administrative Rulemaking Authority Proceedings, The trial court, in reviewing the award of civil penalties under the Private Attorneys' General Act (PAGA), may exercise its discretion to lower the amount of penalties awarded if to do otherwise would result in an award that is unjust, arbitrary and oppressive, or confiscatory. Lab. Code, § 2699(e)(2). Because State law enforcement agencies are the real parties in interest, the court's task is to ensure that the State's interest in enforcing the law is upheld. Civil Procedure > Special Proceedings > Class Actions > Compromise & Settlement Labor & Employment Law > Wage & Hour Laws > Remedies > Class Actions HN3[%] Settlement Class Actions, Compromise & Other than the provisions previously discussed, Private Attomeys' General Act (PAGA) does not establish a standard for evaluating PAGAPage 2 of 7 2020 U.S. Dist. LEXIS 158189, *158189 settlements. The California Labor Workforce Development A gency (LWDA) itself has stated that it is not aware of any existing case law definitively establishing a standard to review PAGA settlements. At least a few district courts have applied the factors in the case of Hanlon v. Chrysler Corp. to evaluate a PAGA settlement. The factors in the case of Hanlon v. Chrysler Corp., which are traditionally used to evaluate class action settlements, include: (1) the strength of plaintiffs' case; (2) the risk, expense, complexity, and likely duration of further litigation; (3) the risk of maintaining class action status throughout the trial; (4) the amount offered in settlement; (5) the extent of discovery completed; (6) the expertise and views of counsel; (7) the presence of government participation; and (8) the reaction of class members to the proposed settlement. Many of these factors are not unique to class action lawsuits and bear on whether a settlement is fair and has been reached through an adequate adversarial process. Administrative Law > Judicial Review > Standards of Review > Arbitrary & Capricious Standard of Review Labor & Employment Law > Wage & Hour Laws > Remedies > Class Actions Civil Procedure > Special Proceedings > Class Actions > Compromise & Settlement Labor & Employment Law > Wage & Hour Laws > Remedies > Private Suits HN4[%] Standards of Review, Arbitrary & Capricious Standard of Review The third, seventh, and eighth factors in the case of Hanlon v. Chrysler Corp., however, are inapplicable in a Private Attorneys’ General Act (PAGA) settlement that was not a class action, which resolved only the plaintiff's individual PAGA claims, and where the California Labor Workforce Development Agency (LWDA) had filed no submission reflecting a position on the settlement. In addition to analyzing the settlement under the five remaining factors in the case of Hanlon v. Chrysler Corp., the court must determine whether the settlement would be unjust, arbitrary and oppressive, or confiscatory with respect to defendant, Lab. Code, § 2699(e)(2), and whether the settlement provisions are at least as effective as the protections or remedies provided by state and federal law or regulation for the alleged violation. Lab. Code, § 2699.3(b)(4). Civil Procedure > Settlements > Settlement Agreements > Validity of Agreements HN5[%] Settlement Agreements, Validity of Agreements Courts have noted that legal uncertainty favors approval of a settlement. Civil Procedure > Settlements > Settlement Agreements > Validity of Agreements HN6[%] Settlement Agreements, Validity of Agreements Where a settlement provides timely, certain, and meaningful recovery, it ought to be favored. Labor & Employment Law > Wage & Hour Laws > Remedies > Private Suits HN7[x&] Remedies, Private Suits Given the statutory language of Private Attorneys’ General Act (PAGA), a plaintiff cannot recover on behalf of individuals whom the plaintiff has not proven suffered a violation of the Labor Code by the defendant. Civil Procedure >... > Attomey Fees &Page 3 of 7 2020 U.S. Dist. LEXIS 158189, *158189 Expenses > Basis of Recovery > Statutory Awards Labor & Employment Law > Wage & Hour Laws > Remedies > Costs & Attorney Fees HN8[] Basis of Recovery, Statutory Awards Private Attomeys' General Act (PAGA) provides for the recovery of attorneys' fees and costs in any successful action. Lab. Code, § 2699(g)(1). Any employee who prevails in any action shall be entitled to an award of reasonable attorney's fees and costs. Counsel: [*1] For Stephen Wanderer, Plaintiff: Rachel Renno, LEAD ATTORNEY, Foos Gavin Law Firm, P.C., Sacramento, CA. For Kiewit Infrastructure West Co., Defendant: Billie Desiree Wenter, Michael E. Brewer, LEAD ATTORNEYS, Baker & McKenzie LLP, San Francisco, CA. Judges: WILLIAM B. SHUBB, UNITED STATES DISTRICT JUDGE. Opinion by: WILLIAM B. SHUBB Opinion MEMORANDUM AND ORDER RE: JOINT MOTION TO APPROVE SETTLEMENT OF AND DISMISS CLAIM UNDER THE PRIVATE ATTORNEY S' GENERAL ACT Plaintiff Stephen Wanderer ("Plaintiff"), individually and in a representative capacity, brought this lawsuit against Defendant Kiewit Infrastructure West Co. ("Defendant") alleging wrongful termination, retaliation in violation of California Labor Code §§ 1102.5 and 98.6, violations of wage and hour laws, and seeking civil penalties under the Private Attorneys' General Act "PAGA") based on the alleged misclassification of plaintiff and other employees as exempt from overtime. (First Am. Compl. "FAC") (Docket No. 10).) Before the court is the parties' Joint Motion to Approve of Settlement and to Dismiss Plaintiff's Claim under the PAGA. ("Joint Mot. for Settlement") (Docket No. 28.) I. Factual and Procedural Background Defendant Kiewit is a construction company incorporated under the laws of the [*2] State of Delaware and with its "nerve center" located in the State of Nebraska. (Notice of Removal ("NOR") (Docket No. 1 at i] 12-13).) Defendant employed plaintiff as a Site Safety and Health Officer ("SSHO") at various locations within California, including the Oroville Dam, the Folsom Dam, and Kiewit's Fairfield Office, from on or around September 15, 2013 until May 12, 2018. (FAC at 9916-12.) On July 5, 2018, plaintiff sent defendant a letter stating that he intended to pursue a PAGA claim based on defendant allegedly misclassifying him as exempt from overtime. (See Mem. of Points and Authorities in Supp. of Joint Mot. to Approve Settlement and to Dismiss Claim under the PAGA ("Settlement Mem.") at 1 (Docket No. 29).) Plaintiff submitted the same letter ("PAGA Letter") to the California Labor Workforce Development Agency ("LWDA"). (See Settlement Mem. at 1.) The LWDA did not respond to the PAGA Letter. (Id.) The operative complaint asserts eight causes of action: (1) wrongful termination in violation of public policy; (2) retaliation in violation of California Labor Code §§ 1102.5 and 98.6; (3) violation of California Labor Code § 201; (4) failure to pay overtime wages in violation of California Labor Code § 510; (5) violation of California Labor Code § 1174; (6) violation of California Labor Code § 226(a); (7) civil penalties [*3] under PAGA for violations of the above Labor Code provisions; and (8) unfair competition in violation of Business and Professions Code § 17200. (See FAC at 4-13.)Page 4 of 7 2020 U.S. Dist. LEXIS 158189, *3 After exchanging extensive discovery, the parties reached a settlement through the court's Voluntary Dispute Resolution Program with Douglas Robert Thorn of Thorn Law Firm. (See Settlement Mem. at 2.) Mr. Thorn has practiced law for over thirty years, had extensive trial experience, and has served as a neutral in over 200 cases, including employment cases. (See id. at 3.) Pursuant to the settlement agreement, the parties agreed to settle plaintiff's individual claims, without admission of fault or liability, for a general release and dismissal upon the Court's approval of the parties' settlement as to the PAGA claim. (See id. at 2.) The parties entered into a separate confidential settlement related to plaintiff's other claims. (See id.) The parties settled plaintiff's individual claims only,’ and the PAGA Settlement Agreement does not release any claim on behalf of any other allegedly affected employee. (See id.) The settlement of plaintiff's claims is contingent on the court issuing a final Order which approves the settlement agreement, dismisses the action [*4] (including plaintiff's PAGA Claim) with prejudice as to the plaintiff and without prejudice as to other allegedly affected employees, and denies an award of civil penalties to the plaintiff. (See id.) II. Discussion A. PAGA Settlement HN1[¥] "[A] PAGA action is a statutory action in which the penalties available are measured by the number of Labor Code violations committed by the employer." Sakkab v. Luxottica Retail N. Am., Inc.. 803 F.3d 425, 435 (9th Cir. 2015). The employees bringing the action do so as agents or proxies of the state's labor law enforcement agencies. See id. Any agreement to waive PAGA claims is an agreement to limit the penalties plaintiff-employees may recover on behalf of the State. See id. at 436. Because a settlement of PAGA claims settles claims that could otherwise be brought by the State, ‘The parties have not given any indication as to the amount that plaintiff and plaintiff's counsel will receive in the settlement of the individual claims. the trial court must "review and approve" any settlement of PAGA claims. See Cal. Lab. Code. § 2699(1)(2). Before the trial court can review and approve of any settlement of PAGA claims, "[t]he proposed settlement shall be submitted to the [LWDA] at the same time that it is submitted to the court." Id. Plaintiff provided a copy of the proposed settlement agreement to the LWDA on July 15, 2020, concurrently with the filing of the Joint Mot. for Settlement.? (Decl. of Rachel Renno in Supp. of [*5] Joint Mot. for Settlement at § 2 ("Renno Decl.") (Docket No. 30)). HN2[¥] The trial court, in reviewing the award of civil penalties under the PAGA, may exercise its discretion to lower the amount of penalties awarded if "to do otherwise would result in an award that is unjust, arbitrary and oppressive, or confiscatory." See Cal. Lab. Code § 2699(e)(2). Because State law enforcement agencies are the real parties in interest, the court's task is to ensure that the State's interest in enforcing the law is upheld. See Rodriguez v. RCO Reforesting Inc., No. 2019, 2019 U.S. Dist. LEXIS 12597) (citing Sakkab, 803 F.3d at 435). HN3[¥] Other than the provisions previously discussed, "PAGA does not establish a standard for evaluating PAGA settlements." See Rodriguez, 2019 U.S. Dist. LEXIS 12597, 2019 WL 331159 at *4 (citing Smith v. H.F.D. No. 55, Inc., No. 2:15- CV-01293 KJM KJN, 2018 U.S. Dist. LEXIS 67192 2018 WL 1899912, at *2 (E.D. Cal. Apr. 20, 2018)). The LWDA itself has stated that it is not aware of any existing case law definitively establishing a standard to review PAGA settlements. Id. (citing Ramirez v. Benito Valley Farms, LLC, No. 16-CV-04708-LHK, 2017 U.S. Dist. LEXIS 137272, 2017 WL 3670794, at *3 N.D. Cal. Aug. 25, 2017)). At least a few district courts have applied the factors in Hanlon v. Chrysler Corp., 150 F.3d 1011, 1026 (9th Cir. 1998), to evaluate a PAGA settlement. See, e.g. 2The LWDA has not appeared in this case and has not filed any objection to the proposed joint settlement.Page 5 of 7 2020 U.S. Dist. LEXIS 158189, *5 Smith, 2018 U.S. Dist. LEXIS 67192, 2018 WL 1899912, at *2; Ramirez, 2017 U.S. Dist. LEXIS 137272, 2017 WL 3670794, at *3; O'Connor v. Uber Techs., 201 F. Supp. 3d 1110, 1134 (N.D. Cal. 2016). The Hanlon factors, which are traditionally used to evaluate class action settlements, include (1) the strength of plaintiffs' case; (2) the risk, expense, complexity, and [*6] likely duration of further litigation; (3) the risk of maintaining class action status throughout the trial; (4) the amount offered in settlement; (5) the extent of discovery completed; (6) the expertise and views of counsel; (7) the presence of government participation; and (8) the reaction of class members to the proposed settlement. See Hanlon, 150 F.3d at 1026. "Many of these factors are not unique to class action lawsuits and bear on whether a settlement is fair and has been reached through an adequate adversarial process." See Ramirez, 2017 U.S. Dist. LEXIS 137272, 2017 WL 3670794, at *3. Thus, the court finds these factors useful in evaluating a settlement of PAGA claims. HN4[¥] The third, seventh, and eighth factors, however, are not relevant to this settlement because it is not a class action and the LWDA has not participated. See Smith, 2018 U.S. Dist. LEXIS 67192, 2018 WL 1899912, at *2 (holding that these factors were inapplicable in a PAGA settlement that was not a class action, which resolved only the plaintiff's individual PAGA claims, and where the LWDA had filed no submission reflecting a position on the settlement.) In addition to analyzing the settlement under the five remaining Hanlon factors, the court must determine whether the settlement would be “unjust, arbitrary and oppressive, or confiscatory" with respect [*7] to defendant, see Cal. Lab. Code § 2699(e)(2), and whether "the settlement provisions are at least as effective as the protections or remedies provided by state and federal law or regulation for the alleged violation." See Cal. Lab. Code § 2699.3(b)(4). First, there is no indication that the settlement would be unjust, arbitrary and oppressive, or confiscatory as to defendants. Both sides have agreed that the settlement is fair and reasonable. (See Settlement Mem. at 4.) Defendant has given no indication that the settlement would be unduly burdensome or unjust. Based on the exchange of substantial information and Mr. Thom's recommendation, both sides have agreed to allocate zero dollars to plaintiff's individual PAGA claim. (See id. at 3.) Plaintiff voluntarily entered into an agreement to accept a monetary benefit to settle his individual claims and not pursue his PAGA claim. (See id. at 4.) Given that both sides have agreed to the settlement and to avoid the further expense of litigation, and the Settlement Agreement does not release any claim on behalf of any other allegedly affected employee, the court concludes that a settlement would not be “unjust, arbitrary and oppressive, or confiscatory." See Rodriguez, 2019 U.S. Dist. LEXIS 12597, 2019 WL 331159, at *4. Second, the "strength of plaintiff's case" factor [*8] also favors approval of settlement. The parties exchanged substantial information at mediation, and the parties' mediator, Mr. Thorn, concluded that the defendant presented compelling evidence and arguments that it properly classified plaintiff as exempt under Califomia's administrative exemption. (See Settlement Mem. at 3.) Mr. Thorn likewise concluded that defendant raised a convincing argument that plaintiff did not comply with PAGA's administrative requirement because his PAGA letter referred only to plaintiff and did not place the LWDA or defendant on notice of his intention to pursue a representative claim. (See id. at 3.); see Khan v. Dunn-Edwards Corp., 19 Cal. App. 5th 804, 809, 228 Cal. Rptr. 3d 90 (2nd Dist. 2018) (affirming summary judgment for defendant where notice "expressly applied only to [plaintiff]" and failed to give the LWDA an adequate opportunity to decide whether to investigate a representative action or provide the company an adequate opportunity to respond to the agency.).) These defenses present a substantial risk to plaintiff's PAGA Claim and the likelihood that the penalties sought by the plaintiff, either in whole or in part, will not be awarded. HN5[¥] Courts have noted that legal uncertainty favors approval of aPage 6 of 7 2020 U.S. Dist. LEXIS 158189, *8 settlement. See Smith, 2018 U.S. Dist. LEXIS 67192, 2018 WL 1899912, at*3. Third, "the risk, expense, [*9] complexity, and likely duration of further litigation" factor strongly favors approval of the settlement. The parties reached this settlement after nearly two years of litigation. The parties have conducted extensive investigation, discovery, and arms-length negotiation between experienced and informed counsel and with the assistance of a seasoned and well-respected mediator. (See Settlement Mem. at 3.) Further litigation would necessitate further expenses and costs for both parties. HN6[¥] Where a settlement "provides timely, certain, and meaningful recovery," it ought to be favored. See Ramirez, 2017 U.S. Dist. LEXIS 137272, 2017 WL 3670794, at*5. Fourth, the settlement reflects the parties' mutual agreement to allocate zero dollars to plaintiff's individual PAGA claim. (See Settlement Mem. at 3.) The parties arrived at this claim based on the exchange of substantial information, Defendant's anticipated defenses and Mr. Thom's recommendation. (Id.) Plaintiff voluntarily entered into an agreement to accept a monetary benefit to settle his individual claims and not pursue his PAGA claim. (Id. at 4.) Courts have previously approved settlements where parties mutually agree to allocate zero dollars or another nominal amount to a PAGA claim. See Nordstrom Comm'n Cases, 186 Cal. App. 4th 576, 589, 112 Cal. Rptr. 3d 27 4th Dist. 2010)(holding that [*10] there was "no abuse of discretion in the trial court's approval of the settlement agreement" which allocated zero dollars for PAGA penalty claims as part of the overall settlement of the case.); see also Alcala v. Meyer Logistics, Inc., No. CV 17-7211 PSG(AGRx), 2019 U.S. Dist. LEXIS 166879, 2019 WL 4452961, at *9 (C.D. Cal. June 17, 2019) (observing that courts have approved PAGA claims which fall "within the zero to two percent range.") Moreover, plaintiff's settlement does not impair the rights or release the claims of other allegedly aggrieved employees. (See Settlement Mem. at 4.) Accordingly, "the amount offered in settlement" factor favors approval. Fifth, regarding the extent of discovery completed and the stage of the proceedings, the parties conducted informal and formal investigation and discovery into plaintiff's claims. (See id. at 3.) The parties engaged in written discovery, including requests for production, requests for admission, and interrogatories. (Decl. of Billie D. Wenter in Supp. of Joint Mot. for Settlement at § 2("Wenter Decl.") (Docket No. 31).). Defendant produced over 12,000 pages in response to requests for production. Id. In addition, defendant deposed plaintiff on February 11, 2020. Id. Moreover, on June 30, 2020, the parties mediated the action through [*11] the court's Voluntary Dispute Resolution Program with Mr. Thorn. (See Settlement Mem. at 2.) Both sides thereby developed a good sense of the risks and benefits of continuing litigation. See Ontiveros v. Zamora, 303 F.R.D. 356, 371 (E.D. Cal. 2014) (Shubb, J.)(observing that the parties use of mediation, which took place after significant discovery, and their reliance on the mediator’s proposal demonstrated that they had carefully considered and evaluated the strength of their arguments.) Accordingly, this factor weighs in favor of approval. Sixth, with respect to the experience and views of counsel, plaintiff was represented by experienced counsel who arrived at this Settlement Agreement through arms-length negotiations and _ by participating in mediation through the court's Voluntary Dispute Resolution Program with the assistance of Mr. Thorn. (See Settlement Mem. at 1.) Plaintiff's counsel believes that the dismissal of the PAGA claim appropriately accounts for the challenges and potential risks of continuing litigation. (See id.) Thus, counsel's conclusion that this settlement is plaintiffs' best chance at recovery is given considerable weight. See Rodriguez, 2019 U.S. Dist, LEXIS 12597, 2019 WL 331159 at *5. Accordingly, this factor weighs in favor of approval.Page 7 of 7 2020 U.S. Dist. LEXIS 158189, *11 Seventh, and finally, this settlement [*12] is "at least as effective as the protections or remedies provided by state and federal law or regulation for the alleged violation." See Cal. Lab. Code § 2699.3(b)(4). As mentioned previously, this settlement resolves only plaintiff's individual claims for civil penalties; it is not a class settlement and therefore does not impair the rights or release the claims of any other allegedly aggrieved employees. (See Settlement Mem. at 1.) Here, Mr. Thorn concluded that plaintiff was properly classified as an employee exempt from overtime under Califomia's administrative exemption. (Id. at 3); See 8 Cal. Code Regs. § 11040(1)(A)(2). HN7[ ] "Given the statutory language [of PAGA], a plaintiff cannot recover on behalf of individuals whom the plaintiff has not proven suffered a violation of the Labor Code by the defendant." Cardenas v. McLane Foodservice, Inc., No. SACV 10-473 DOC (FFMx), 2011 U.S. Dist. LEXIS 13126, 2011 WL 379413 at *3 (C.D. Cal. 2011). The plaintiff has not demonstrated the violation of the Labor Code by defendant for any additional employees and may not even be able to demonstrate a violation of the Labor Code by defendant in his own case. The court, therefore, finds that the settlement satisfies this provision of the California Labor Code. Accordingly, because every relevant factor favors final approval of the settlement, the [*13] court will approve the parties' settlement of plaintiff's PAGA claims. B. Attorneys’ Fees HN8[¥#] PAGA provides for the recovery of attomeys' fees and costs in any successful action. See Cal. Lab. Code § 2699(q)(1) ("Any employee who prevails in any action shall be entitled to an award of reasonable attorney's fees and costs."). Here, the parties have agreed to bear their own attomeys' fees and costs related to this action, and plaintiff's counsel waives any and all rights to further attomeys' fees and costs in connection with this action, except as separately agreed upon between plaintiff and plaintiff's counsel. See Stipulated Settlement Agreement (Docket No. 31-1 at 4.) The parties have also agreed to a mutual waiver of any right to pursue recovery of costs. (See Settlement Mem. at 4.) As plaintiff has not prevailed on any PAGA claim, he is not entitled to any attomey's fees under PAGA. Accordingly, the court approves of the joint decision by the parties to bear their own attomey's fees and waive their rights to pursue recovery of costs. IT IS THEREFORE ORDERED that the parties' Joint Mot. for Settlement (Docket No. 28) be, and the same hereby is, GRANTED. Plaintiff is not entitled to any civil penalties under [*14] PAGA. This action, including plaintiff's PAGA Claim, is DISMISSED WITH PREJUDICE as to plaintiff, and DISMISSED WITHOUT PREJUDICE as to any individual or representative claims, including any PAGA claim, that may be brought by any other employees that may have been affected by defendant's alleged conduct. The Clerk of Court is instructed to enter judgment accordingly. Dated: August 28, 2020 /s/ William B. Shubb WILLIAM B. SHUBB UNITED STATES DISTRICT JUDGE End of DocumentExhibit 2Chamberlain v. Baker Hughes, a GE Company, LLC, Slip Copy (2020) 2020 WL 4350207 Only the Westlaw citation is currently available. United States District Court, E.D. California. Michael CHAMBERLAIN, Plaintiff, v. BAKER HUGHES, A GE COMPANY, LLC, Defendant. No. 1:19-cv-00831-DAD-JLT | Signed 07/29/2020 Attorneys and Law Firms Karl Gerber, Ann Benin Guleser, Employment Lawyers Group, Sherman Oaks, CA, for Plaintiff. Michele Haydel Gehrke, Reed Smith LLP, San Francisco, CA, Fatemeh S. Mashouf, Reed Smith LLP, Los Angeles, CA, for Defendant. ORDER GRANTING MOTION FOR APPROVAL OF PAGA SETTLEMENT AGREEMENT Dale A. Drozd, UNITED STATES DISTRICT JUDGE *1 This matter is before the court on plaintiff's unopposed motion for approval of a settlement agreement and dismissal with prejudice of plaintiff's sixth cause of action against defendant pursuant to the Private Attorneys General Act (“PAGA”). (Doc. No. 19.) Pursuant to General Order No. 617 addressing the public health emergency posed by the coronavirus outbreak, on April 22, 2020, the court took the motion under submission to be decided on the papers. (Doc. No. 24.) Having considered the unopposed motion and despite some reservation, the court will approve the settlement agreement. BACKGROUND WESTLAW On May 14, 2019, plaintiff Michael Chamberlain filed this action in Kern County Superior Court asserting five causes of action. (Doc. No. 4-1.) Defendant Baker Hughes, a GE Company, LLC (“Baker Hughes”) removed the action to this federal court on June 13, 2019. (See generally Doc. No. 1.) On July 13, 2019, the parties filed a joint stipulation allowing plaintiff to file a first amended complaint to add a PAGA claim. (Doc. No. 10 at 2.) In that stipulation, the parties agreed that plaintiffs non-PAGA claims should proceed under an arbitration agreement without the need for a motion to enforce the arbitration agreement. (/d.) The parties also agreed that they would proceed to submit the non-PAGA claims to arbitration if the action was not resolved by private mediation by December 31, 2019. (/d.) Pursuant to the stipulation, the court was to retain jurisdiction as to plaintiff's PAGA claim, lifting the stay at such time that the parties submit a motion to approve settlement and/or the arbitration came to a final resolution. (/d. at 3.) On August 1, 2019, the court gave effect to the stipulation and stayed this action. (Doc. No. 11.) Plaintiffs first amended complaint alleges that on or about March 26, 2017, plaintiff returned to work as a directional driller at Baker Hughes after being laid off. (Doc. No. 12 at § 4.) As it pertains to his PAGA claim, plaintiff alleges that PAGA penalties are owed for the following California Labor Code § 226 violations: 1) the paystubs do not state an hourly rate for the daily rate, or the car allowance; 2) The paystubs do not state how many hours of work the daily rate or car allowance is for; 3) The paystubs fail to specify the correct overtime, double time, or regular rates of pay; 4) Defendant has failed to preserve the actual paystubs for each pay period in their electronic system. They have changed paystubs insofar as rates of pay, total compensation, why the compensation was paid, and how many hours the pay was for; 5) in approximately May of 2019 Defendant created a series of bi-weekly paystubs from on or about December 21, 2018 to 5-10-19 which make it virtually impossible to determine what hourly rates are paid, how many hours the sums are paid for, why there are substations of hours and gross sums, the same issues described in 1-4 above but even worse because these stubs show zero hours at regular pay, zero hours for an overtime bonus but gross sums are listed. The same has been done for other members of the PAGA group at other dates; 6) The paystubs state OT Bonus but fail to specify the number of hours or hourly rate for that itemization. Because the employer failed to properly provide employee wage deduction statements for each payChamberlain v. Baker Hughes, a GE Company, LLC, Slip Copy (2020) period during the statutory time a total of $600 is due per pay period per employee. The employees were paid biweekly; 7) Meal Break penalties do not appear and the general number of regular, overtime, and double time hours worked are incorrect. *2 (id. at § 26.) Additionally, plaintiff asserts that defendant violated § 226 by failing to pay overtime and double time, and because not all wages were paid as required by statute. (/d. at § 27.) Plaintiff alleges that the total PAGA violations are worth $1,600.00 in PAGA penalties per employee per weekly pay period, go back a year before this action was filed, and relate to defendant’s nonexempt directional drillers and measurement well drillers who were paid daily bonuses and travel time. (/d.) Plaintiff estimates that there are thirty to fifty of these employees in the statutory period. (/d.) On January 9, 2020, the parties engaged in private mediation with employment law mediator Steve Cerveris (Doc. No. 20 at 6), which resulted in the finalizing of the terms of a PAGA settlement agreement (Doc. No. 20-3 (“the Agreement”)) on February 5, 2020 (id. at J 4). On April 6, 2020, plaintiff filed this unopposed motion for settlement approval.! (Doc. No. 19.) On April 16, 2020, the court directed the parties to submit supplemental briefing providing additional information regarding litigation costs accrued, the reasonableness of the attorneys’ fees provision, and the fundamental fairness, reasonableness, and adequacy of the Agreement. (Doc. No. 23.) On April 24, 2020, plaintiff's counsel, attorney Karl Gerber, submitted a supplemental declaration (“the supplemental Gerber declaration”) and exhibits. (Doc. No. 25.) Defendant submitted a supplemental brief on April 27, 2020. (Doc. No. 27.) THE PROPOSED SETTLEMENT According to the Agreement, defendant will pay a gross settlement payment of $25,000.00. (The Agreement at 38.) The gross settlement payment will include (1) claims administration costs of up to $1,000.00 to Phoenix Settlement Administrators; plaintiff's litigation costs of up to $1,000.00, subject to court approval; (3) plaintiff's attorneys’ fees of 40 percent of the gross settlement payment, subject to court approval; and (4) the PAGA fund comprising the remaining funds, to be divided 75 percent to the Labor and Workforce Development Agency (LWDA) and 25 percent to the aggrieved employees. (/d. at §§ 25, 38.) If the actual amount of claims administration, litigation costs, and/or attorneys’ fees are less or more than the amounts set forth above, those funds shall be added to or subtracted from the PAGA fund. (/d. WESTLAW at { 39.) The total amount of the gross settlement payment shall not exceed $25,000.00. (/d.) The Agreement defines “aggrieved employee(s)” as “Plaintiff and all persons who are or were employed by defendant working in California as non-exempt directional drillers and/or measurement well drillers who were paid daily bonuses and/or travel time from May 10, 2018 through January 9, 2020.” (/d. at § 1.) The 25 percent that is allocated to the aggrieved employees will be divided by the total number of eligible pay periods for all aggrieved employees, which will yield a pay period amount. (/d. at § 42.) The gross amount of each individual PAGA payment shall be calculated by multiplying the number of eligible pay periods worked by the individual aggrieved employee by the pay period amount. (/d.) “Eligible pay periods” are the total number of pay periods worked by each aggrieved employee during the covered period—May 10, 2018 to January 9, 2020—in California as a non-exempt directional drillers and/or measurement well drillers. (/d. at §§] 6, 9.) The covered claims are as follows: *3 all claims, causes of action, and legal theories of relief alleged or which could have been alleged or otherwise raised based on the facts in the FAC...or the LWDA Letter for PAGA penalties, including: (1) failure to provide meal and rest breaks or premium payments in lieu thereof (including Labor Code 226.7., 512, Wage Order 16); (2) failure to pay all wages and the regular rate, overtime rate or double time rate (including Labor Code 558,204,210,215, and 216); (3) failure to timely pay all wages, including upon termination, and waiting time penalties; (4) failure to provide complete and accurate wage statements; (5) failure to indemnify for business expenses; (6) unlawful deductions from wages; (7) unfair business practices (California Business & Professions Code section 17200 et seq.) that could have been premised on the facts, claims causes of action or legal theories described above or on any of the claims, causes of action or legal theories of relief pleaded in the FAC for restitution claims premised on the above-referenced violations; (8) all claims under PAGA that could have been premised on the facts, claims, causes of action or legal theories described above or on any of the claims, causes of action or legal theories of relief pleaded in the FAC; and (9) all damages, penalties, interest, costs (including attorney’s fees) and other amounts recoverable under said claims or causes of action as to the facts and/or legal theories alleged or which could have been alleged in the FAC. (Id. at] 5.) The Agreement provides that, as of the effective date,Chamberlain v. Baker Hughes, a GE Company, LLC, Slip Copy (2020) each aggrieved employee shall fully release and forever discharge defendant from any and all claims, causes of action, demands, rights, liabilities, penalties, attorneys’ fees, costs, damages, interest, restitution, and/or liability that were or could have been asserted against defendant in the PAGA lawsuit and/or the PAGA letter to LWDA based on the covered claims. (/d. at § 49.) This release extends to all PAGA claims arising from or relating to any and all acts, events and omissions that occurred and/or accrued during the covered period. (/d.) Upon the court’s approval of the Agreement, aggrieved employees will have no standing to appeal, object or request exclusion from the settlement. (/d.) LEGAL STANDARD In 2003, the California Legislature enacted the Private Attorney General Act, California Labor Code §§ 2698 et seq., after declaring: (i) that adequate financing of labor law enforcement was necessary to achieve maximum compliance; (ii) that staffing levels for state labor law enforcement agencies have declined and were unable to keep up with a growing labor market; (iii) that vigorous assessment and collection of civil penalties provides a meaningful deterrent to unlawful conduct; and (iv) that it was therefore in the public interest to allow aggrieved employees, acting as private attorneys general, to seek and recover civil penalties for Labor Code violations. 2003 Cal. Stat. 6629. Under PAGA, an “aggrieved employee” may bring an action for civil penalties for labor code violations on behalf of herself and other current or former employees. Cal. Lab. Code § 2699(a).? A plaintiff suing under PAGA “does so as the proxy or agent of the state’s labor law enforcement agencies.” Arias v. Superior Court, 46 Cal. 4th 969, 986 (2009). Accordingly, a judgment in a PAGA action “binds all those, including nonparty aggrieved employees, who would be bound by a judgment in an action brought by the government.” Jd. (emphasis added); see also Iskanian v. CLS Transp. L.A., LLC, 59 Cal. 4th 348, 381 (2014) (“When a government agency is authorized to bring an action on behalf of an individual or in the public interest, and a private person lacks an independent legal right to bring the action, a person who is not a party but who is represented by the agency is bound by the judgment as though the person were a party.”). The PAGA statute imposes a number of limits on litigants. First, because a PAGA action functions as a “substitute” for an action brought by the state government, a plaintiff suing under PAGA is limited to recovery of civil penalties only, rather than damages WESTLAW available privately through direct or class action claims. Id. Second, to bring an action under PAGA, an aggrieved employee must first provide written notice to the LWDA as well as to the employer. Cal. Lab. Code § 2699.3(a)(1). Third, any civil penalties recovered must be distributed as follows: 75 percent to the LWDA, and the remaining 25 percent to the aggrieved employees. Jd. § 2699(i). *4 Finally, a trial court must “review and approve” any settlement of PAGA claims. Id. § 2699(/)(2).* There is no binding authority identifying the proper standard of review of PAGA settlements to be employed by the court. Tn the class action context, where PAGA claims often also appear, a district court must independently determine that a proposed settlement agreement is “fundamentally fair, adequate and reasonable” before granting approval. See Officers for Justice v. Civil Serv. Comm’n of City & Cty. of San Francisco, 688 F.2d 615, 625 (9th Cir. 1982); In re Heritage Bond Litig., 546 F.3d 667, 674-75 (9th Cir. 2008). However, this is not a class action, and PAGA claims are intended to serve a decidedly different purpose—namely to protect the public rather than for the benefit of private parties. See Arias, 46 Cal. 4th at 986. The LWDA has provided some guidance regarding court approval of PAGA settlements. See California Labor and Workforce Development Agency’s Comments on Proposed PAGA Settlement (“LWDA Comments”), O’Connor v. Uber Techs., Inc., No. 3:13-cv-03826-EMC (N.D. Cal. Jul. 29, 2016) (Doc. No. 736 at 2-3.). In that case, where both class action and PAGA claims were covered by a proposed settlement, the LWDA stressed that when a PAGA claim is settled, the relief provided for under the PAGA [must] be genuine and meaningful, consistent with the underlying purpose of the statute to benefit the public and, in the context of a class action, the court [must] evaluate whether the settlement meets the standards of being “fundamentally fair, reasonable, and adequate” with reference to the public policies underlying the PAGA. Id.; see also O'Connor y. Uber Techs., Inc., 201 F. Supp. 3d 1110, 1133 (N.D. Cal. 2016) (citing the same with approval). Recognizing the distinct issues presented by class actions, this court is nevertheless persuaded by the LWDA’s reasoning in O’Connor and therefore adopts its proposed standard in evaluating the PAGA-only _ settlement agreement now before the court. Accordingly, the court will approve a settlement of PAGA claims upon a showing that the settlement terms (1) meet the statutory requirements set forth by PAGA, and (2) are fundamentally fair, reasonable, and adequate in view of PAGA’s public policy goals. See Tenorio v. Gallardo,Chamberlain v. Baker Hughes, a GE Company, LLC, Slip Copy (2020) No. 1:16-cv-00283-DAD-JLT, 2019 WL 4747949, at *3 (E.D. Cal. Sept. 30, 2019). ANALYSIS A. The PAGA Settlement PAGA’s statutory requirements require that 75 percent of the civil penalties recovered by aggrieved employees must be allocated to the LWDA and 25 percent allocated to aggrieved employees.’ Cal. Lab. Code § 2699(i). As stated above, the Agreement in this case allocates the PAGA fund accordingly. (See the Agreement at § 42.) Although the Agreement does not specify the dollar amounts for the PAGA fund’s allocations, according to the motion, the PAGA fund will total $13,363.29. (Doc. No. 19 at 7.) The claims administrator will pay 75 percent of the PAGA fund, or $10,022.46, to the LWDA, with the remaining 25 percent, or $3,340.83, to be distributed among the aggrieved employees on a pro-rata basis. (/d.; the Agreement at 42.) As stated above, the Agreement lists Phoenix Settlement Administrators as the settlement administrator. (The Agreement at §] 25; see also Doc. No. 20-6.) According to plaintiff's motion, attorney Gerber has used Phoenix Settlement Administrators for multiple PAGA settlements, and they have delivered timely and economical services. (Doc. Nos. 19 at 7; 20 at J 6.) Attorney Gerber also attaches to his declaration the form by which he submitted the proposed settlement to the LWDA. (Doc. No. 20-4.) *5 Plaintiff's counsel ultimately concludes, albeit by a somewhat circuitous route, that a $200,000.00 PAGA verdict would be a success in this case. (Doc. No. 19 at 5.) If the court accepts the $200,000.00 valuation, the $25,000.00 settlement represents a 12 percent of the likely verdict in this case. (/d. at 6.) In his supplemental declaration, attorney Gerber states that he proposed the settlement amount “based upon the size of the group, the total potential, the defenses, and [his] experience in this area of the law.” (Doc. No. 25 at § 26.) In its supplemental brief, defendant maintains that it does not concede any liability whatsoever under PAGA in this case and that in its view the settlement amount “is still grossly over-valued” in light of its valid defenses to the underlying claims. (Doc. No. 27 at 22-23.) Plaintiff's counsel anticipates encountering the following difficulties should this matter proceed. Counsel states that defendant, who is in the oil business, is at risk of filing for WESTLAW bankruptcy and being unable to pay this settlement given the current state of the oil market. (Doc. No. 25 at § 26.) Counsel also explains that very few potential litigants were willing to participate in this action. (/d. at § 24.) He represents that most employees involved in this PAGA group are short-term employees, and adds “that a large part of this group are not California residents who [he] cannot get to come to court in Fresno.” (/d.) In his motion for final approval, plaintiff notes that the Agreement will provide LWDA with penalties while paying a number of affected employees who are not motivated to participate in this suit. (Doc. No. 19 at 8.) Plaintiff also observes that the affected employees can still bring individual actions to recover their actual damages because the Agreement only releases PAGA liability. (/d. at 6.) With this understanding, the court will approve the Agreement as it pertains to the award of PAGA penalties. Because of the concrete risk attendant with the pursuit of further litigation in this action and, most critically, the lack of objection from the LWDA despite being provided timely notice of the terms of this proposed settlement, the court finds that the amount offered in settlement of the PAGA claims here weighs in favor of approval. Having reviewed the parties’ submissions and the terms of the proposed settlement, the court finds that the settlement amount related to plaintiffs’ PAGA claims is fair, reasonable, and adequate in light of the public policy goals of PAGA. See O'Connor, 201 F. Supp. 3d at 1132-33 (defining PAGA’s goals as __ including “benefit[ting] the public by augmenting the state’s enforcement capabilities, encouraging compliance with Labor Code provisions, and deterring noncompliance”) (emphasis added). B. Attorneys’ Fees The court now turns to the attorneys’ fees provision of the Agreement. The relevant provision of PAGA provides that “[a]ny employee who prevails in any action shall be entitled to an award of reasonable attorney’s fees and costs.” Cal. Lab. Code § 2699(g). Calculating attorneys’ fees under this provision requires application of the lodestar. See Steenhuyse v. UBS Fin. Servs., Inc., 317 F. Supp. 3d 1062, 1072 (N.D. Cal. 2018); PLCM Grp. v. Drexler, 22 Cal. 4th 1084, 1095 (2000) (noting that “the fee setting inquiry in California ordinarily begins with the ‘lodestar’ ”); Margolin v. Reg’l Planning Comm'n, 134 Cal. App. 3d 999, 1004 (1982) (“California courts have consistently held that a computation of time spent on a case and the reasonable value of that time is fundamental to a determination of an appropriate attorneys’ feeChamberlain v. Baker Hughes, a GE Company, LLC, Slip Copy (2020) award.”). “In determining reasonable hours, counsel bears the burden of submitting detailed time records justifying the hours claimed to have been expended.” Chalmers v. City of Los Angeles, 796 F.2d 1205, 1210 (9th Cir. 1986). “Where the documentation of hours is inadequate, the district court may reduce the award accordingly.” Hensley v. Eckerhart, 461 U.S. 424, 433 (1983). A district court should also exclude from the lodestar fee calculation any hours that were not “reasonably expended,” such as hours that are excessive, redundant, or otherwise unnecessary. See id. at 434; J & J Sports Prods., Inc. v. Napuri, No. C 10-04171 SBA, 2013 WL 4428573, at *1 (N.D. Cal. Aug. 15, 2013). *6 In assessing fee applications, the reasonable hourly rates are calculated according to the prevailing market rates in the relevant legal community. Blum v. Stenson, 465 U.S. 886, 895 (1984); Gonzalez v. City of Maywood, 729 F.3d 1196, 1205 (9th Cir. 2013); Ingram vy. Oroudjian, 647 F.3d 925, 928 (9th Cir. 2011) (“We have held that ‘[iJn determining a reasonable hourly rate, the district court should be guided by the rate prevailing in the community for similar work performed by attorneys of comparable skill, experience, and reputation.’ ”) (quoting Chalmers, 796 F.2d at 1210-11); Van Skike v. Dir., Office of Workers’ Comp. Programs, 557 F.3d 1041, 1046 (9th Cir. 2009); Carson v. Billings Police Dep’t, 470 F.3d 889, 891 (9th Cir. 2006). Typically, the “relevant legal community” is the forum district’ and the local hourly rates for similar work should normally be employed. Gonzalez, 729 F.3d at 1205; Prison Legal News, 608 F.3d at 454; Gates v. Rowland, 39 F.3d 1439, 1449 (9th Cir. 1994); Deukmejian, 987 F.2d at 1405. The fee