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KEITH A. JACOBY, Bar No. 150233
kjacoby@littler.com
2 NATHANIEL H. JENKINS, Bar No. 312067
nienkins@littler.com
3 LITTLER MENDELSON, P.C.
4 500 Capitol Mall
Suite 2000
5 Sacramento, CA 95814 FILED/ENDORSED
Telephone: 916.830.7200
6 Fax No.: 916.561.0828 JAN 2 8 2021
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Attorneys for Defendant By:. H. PFMFI.T0N
Deputy Clerk
8 HEALTH NET OF CALIFORNIA, INC.
9
10 SUPERIOR COURT OF THE STATE OF CALIFORNIA
11 FOR THE COUNTY OF SACRAMENTO
12 ANDREA SPEARS, an individual, on behalf Consolidated CaseNo. 34-2017-00210560
of herself and on behalf of all persons
13 similarly situated. DEFENDANT H E A L T H NET OF
CALIFORNIA, INC.'S CASE
14 Plaintiff, MANAGEMENT STATEMENT
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HEALTH NET OF CALIFORNIA, INC., a Date: February 12, 2021
16 California Corporation; and Does 1 through Time: 9:00 a.m.
50, inclusive. Courtroom: Dept. 41
17 Judge: Hon. David De Alba
Defendants
18 Original Complaint Filed: April 5, 2017
FAC Filed: June 29, 2017
19 Consolidated Complaint Filed: Dec. 21, 2017
20 TOMAS R. ARANA, on behalf of himself, aU
others similarly situated,
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Plaintiff,
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v.
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HEALTH NET OF CALIFORNIA, INC., a
24 California corporation; and DOES 1-50,
inclusive.
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Defendant.
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DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT
DEFENDANT'S CASE MANAGEMENT STATEMENT
2 At a hearing in this matter on October 16, 2020, the Court scheduled a case management
3 conference for November 13, 2020. The Court further directed the parties to submit a case
4 management statement within 10 days prior to that case management conference, and specifically
5 instructed the parties to include a detailed discussion of the procedural history of this case. On
6 November 13, 2020, the law firm Littler Mendelson, P.C. substituted in as counsel for Defendant
7 Health Net of California, Inc. ("HNCA"), replacing Greenberg Traurig, LLP. Accordingly, the Court
8 continued the case management conference for February 12, 2021. Defendant now respectfully
9 submits the following case management statement.
10 PROCEDURAL HISTORY
II Plaintiff Andrea Spears ("Spears") filed her Class Action Complaint against HNCA on April
12 5, 2017 in Sacramento County Superior Court, and filed a First Amended Complaint on June 29,
13 2017. RA 1, 13. On May 11, 2017, Plaintiff Tomas Arana ("Arana," and collectively with Spears,
14 "Plaintiffs") filed his Class Action Complaint in Santa Clara County Superior Court against Health
15 Net, Inc. ("HNI"). By stipulation, Arana agreed to dismiss his Complaint filed in Santa Clara County.
16 Superior Court and file a new Complaint in Sacramento County Superior Court, naming HNCA as
17 Defendant Arana filed that Complaint on August 1, 2017. RA 22. Thereafter, the parties stipulated
18 to consolidation of Spears' and Arana's cases, and the Court ordered the cases consolidated on
19 October 11, 2017. RA 32. Plaintiffs filed a Consolidated Complaint on December 22, 2017, which
20 is now the operative Complaint in this matter. RA 66.
21 The parties proceeded through discovery, and HNCA filed a Motion for Summary
22 Adjudication on February 5, 2018. RA 100. Specifically, HNCA sought summary adjudication with
23 respect to the following issues: (1) HNCA's alleged failure to include cash payments in lieu of
24 benefits in the regular rate of pay; (2) HNCA's alleged failure to include bonus payments in the
25 regular rate of pay; (3) HNCA's alleged failure to include shift differential premiums in the regular
26 rate of pay; (4) HNCA's alleged rounding practice; and (5) the derivative claims under the Private
27 Attorneys General Act ("PAGA") for each alleged violation. See RA 101. The Court, Judge
28 Christopher Krueger presiding, granted the motion with respect to Plaintiffs' shift differential and
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DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT
rounding theories, as well as the PAGA clairns derivative of each. RA 272. The Court denied the
2 motion with respect to Plaintiffs' cash in lieu of benefits and bonus theories, as well as the PAGA
3 claims derivative of each. Id.
4 On November 19, 2018, HNCA filed a Renewed Motion for Summary Adjudication. RA 280.
5 HNCA sought suiTimary adjudication as to Plaintiffs' cash in lieu of benefits and bonus theories, as
6 well as the derivative PAGA claims. RA 282. Although the motion was originally scheduled to be
7 heard before Judge Perkins, and although this case was assigned to Department 35 for all purposes,
8 the motion was subsequently rescheduled before Judge Krueger in Department 54 after Judge Perkins
9 later declined to hear it. See RA 344, 354. Judge Krueger denied that motion on February 26, 2019,
10 finding that HNCA had not satisfied the procedural requirements for filing a renewed motion. RA
11 374. In addition, the parties stipulated that upon denial of this motion, the Court could grant
12 certification ofthe claims involved in that motion. RA 439 at 7.
13 On December 21, 2018, Plaintiffs moved for class certification with respect to the following
14 claims and theories: (1) HNCA's alleged faUure to provide all requisite meal periods under California
15 law; (2) HNCA's alleged failure to provide all requisite rest periods under California law; and (3)L
16 HNCA's alleged failure to compensate employees for work performed off the clock. See id. On
17 August 30, 2019, the Court denied Plaintiffs' motion as to Plaintiffs' meal and rest break claims,
18 finding that "individual issues would predominate" as to each. RA 439 at 5. The Court reached the
19 same conclusion with respect to Plaintiffs' allegations that employees performed work after clocking
20 out M a t 6. With respect to Plaintiffs' allegations of performing work prior to clocking in, the Court
21 sua sponte certified a particular issue for class-wide resolution, specificaDy whether "the time
22 recording systems in effect during the relevant periods prevent[ed] an accurate capture of the start
23 time of the class members[.]" Id. Per the stipulation between the parties, the Court also certified a
24 class of "All individuals who are or previously wereemployed by Defendant Health Net ofCalifomia,
25 Inc. in California and classified as non-exempt and received 'MedFlxWave' payments,
26 'DenFlxWave' payments, SPOT Awards, ACA Incentive payments and/or Wellness Incentive
27 payments during the period of April 5, 2013 to December 31, 2016." Id. at 7.
28 On the same day Plaintiffs filed their motion for class certification, and pursuant to stipulation
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DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT
of the parties and by order of the Court (see RA 257 at 3), HNCA filed its Motions as to Why Spears'
2 and Arana's Cases Should Not Proceed as a PAGA Representative Action. RA 321, 322. HNCA
3 contended that Arana's claims were time-barred, that Arana lacked standing, and that Arana's meal
4 period, rest period, and off-the-clock PAGA allegations were unmanageable. RA 316. With respect
5 to Spears, HNCA argued that Spears could not pursue an off-the-clock claim because she had never
6 exhausted it in her Notice Letter to the LWDA, and that her meal and rest period claims were
7 unmanageable in the same manner as Arana's. RA 315. The Court denied those motions without
8 prejudice on September 30, 2019. RA 452.
9 Plaintiffs filed their Trial Presentation and Management Plan ("Trial Plan") on January 24,
10 2020. RA481. On March 6, 2020, HNCA filed Motions to Strike Spears'and Arana's Representative
11 PAGA Claims. RA 485, 488. The Court held a hearing on those motions on October 16, 2020, and
12 denied them by minute order on October 22, 2020. RA 545.
13 Atthe hearing on October 16, 2020 regarding the Motion to Strike, the Court scheduled a case
14 management conference for November 13, 2020. The Court further directed the parties to submit a
15 case management statement within 10 days prior to that case management conference, and,
16 specifically instructed the parties to include a detailed discussion of the procedural history of this
17 case. Defendant filed a detailed case management statement on November 3, 2020. RA 547. On
18 November 13, 2020, the law firm Littler Mendelson, P.C. substituted in as counsel for Defendant
19 Health Net of California, Inc. ("HNCA"), replacing Greenberg Traurig, LLP. RA 554. Accordingly,
20 the Court continued the case management conference for February 12, 2021. RA 553.
21 DEFENDANT'S STATEMENT
22 Since substituting in as new counsel, defense counsel has met and conferred with Plaintiffs'
23 counsel and the Parties have agreed to submit this matter to mediation with mediator Tripper Ortman.
24 The Parties have reserved a date to mediate with Mr. Ortman on June 8, 2021. Accordingly, Defendant
25 requests that this Court set a further case management conference for 30 days after the Parties'
26 mediation to set trial dates and/or further briefing schedules.
27 Should the Parties not reach a settlement on June 8, 2021, HNCA intends to file a second
28 Motion for Summary Adjudication. That Motion will likely cover at least the following topics: (1)
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DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT
whether Arana's PAGA claims are barred by the statute of limitations; (2) whether Spears' and
2 Arana's PAGA claims are barred in whole or in part for failure to exhaust; and (3) whether Spears
3 and Arana should be judicially estopped from pursuing certain theories of liability. These issues were
4 not addressed in HNCA's prior Motions for Summary Adjudication. See Cal. Civ. Proc. Code §
5 437c(f)(2). Moreover, because the Court denied HNCA's Motions to Strike Spears' and Arana's
6 Representative PAGA Claims on procedural grounds, those issues have never been resolved on the
7 merits. HNCA intends to file this Motion by the end of this year. HNCA would like to discuss and
8 set an appropriate briefing schedule for this motion atthe next case management conference.
9 In addition, HNCA's Objections to Plaintiffs' Trial Plan set forth numerous issues with the
10 way Plaintiffs seek to try this case, not least of which is manageability. See RA 483. Those issues
11 remain outstanding and were not addressed at the October 16, 2020 hearing. HNCA proposes that
12 the Court address these issues either at the next case management conference or after ruling on
13 HNCA's motion for summary adjudication.
14 R E L A T E D CASES
15 Since substituting in as new counsel in November 2020, it has come to defense counsel's,
16 attention that there are two pending cases that are related to the instant case (one of which was only
17 filed in November 2020 in this same court). The two cases are: (1) Ariana Carranza v. Health Netof
18 California Inc., et a i , filed in Los Angeles County Superior Court on April 16, 2020 as Case No.
19 20STCV14774; and (2) Flora Alvarez v. Health Net of CaUfornia Inc., filed in Sacramento County
20 Superior Court on November 17, 2020 as CaseNo. 2020-00289192. The AlvarezmatXer has also been
21 assigned to Department 41. Defendant will be concurrently filing a Notice of Related Cases along
22 with this case management statement, but wanted to provide this information here as well for the
23 Court's reference.
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DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT
DATED: January 28, 2021 LITTLER MENDELSON, P.C.
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3 By:
KEITH A. JACOBY
4 NATHANIEL H. JENKINS
Attorneys for Defendant
5 HEALTH NET OF CALIFORNIA, INC
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DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT
Andrea Spears, et aL vs. Health Netof Califomia, Inc.
Sacramento County Superior Court CaseNo. 34-2017-00210560
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DECLARATION OF SERVICE
3
I am a citizen of the United States, over the age of 18 years, and not a party to or interested
4 in this action. I am employed in the County of Sacramento, State of California and my business
address is Littler Mendelson, P.C. 500 Capitol Mall, Suite 2000, Sacramento, CA 95814.
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On January 28, 2021, 1 caused to be served the following document(s):
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DEFENDANT H E A L T H NET OF CALIFORNIA, INC.'S CASE MANAGEMENT
7 STATEMENT
8 By placing • the original EH a true copy into sealed envelopes addressed and served as
follows:
9
Norman Blumenthal
10 Aparajit Bhowmik Attorneys for Plaintiff
Piya Mukherjee Andrea Spears
11 Victoria B. Rivapalacio
BLUMENTHAL, NORDREHAUG & BHOWMIK LLP
12 2255 Calle Clara
La Jolla, CA 92037
13 Email: norm@bamlawca.com
ai@bamlawca.com
14 piva(a)bamlawca.com
victoria@bamlawca.com
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Telephone: (858) 551-1223
16 Facsimile: (858) 551-1232
17 Shaun Setareh
William M. Pao Attorneys for Plaintiff
18 Jose Maria D. Patino, Jr. Tomas R. Arana
SETAREH LAW GROUP
19 315 S. Beverly Drive, Suite 315
Beverly Hills, CA 90212
20 Email: shaun@setarehlaw.com
william@setarehlaw.com
21 iose@setarehlaw.com
Telephone: (310) 888-7771
22 Facsimile: GIO^ 888-0109
23 g l BY ELECTRONIC TRANSMISSION: By transmitting a true and a correct copy thereof
attached to the electronic emaO address(es) as set forth above.
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I declare under penalty of perjury under the laws ofthe State of California that the foregoing
25 is true and correct.
Executed on January 28, 2021, at Sacramento, California.
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27 Lauren Michel
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PROOF OF SERVICE
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