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1 Timothy J. Long (SBN 137591) ^[[^^TENDORSED
longt@gtlaw.com
2 Samuel S. Hyde (SBN 327065)
hydes@gtlaw.com
3 GREENBERG TRAURIG, LLP MAR 1 8 2020
1201 K Street, Suite 1100
4 Sacramento, (California 95814
Telephone: 916.442.1111 By J. Gable, Deputy Clerk
5 Facsimile: 916.448.1709
6 Rowena Santos (SBN 210185)
santosro@gtlaw.com
7 GREENBERG TRAURJG, LLP
18565 Jamboree Road, Suite 500
8 Irvine, Califomia 92612
Telephone: 949.732.6500
9 Facsimile: 949.732.6501
10 Attomeys for Defendant
HEALTH NET OF CALIFORNL\, INC.
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SUPERIOR COURT OF THE STATE OF CALIFORNIA
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COUNTY OF SACRAMENTO
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15 ANDREA SPEARS, an individual, on behalf of Case No. 34-2017-00210560-CU-OE-GDS
herself and on behalf of ail persons similarly (Consolidated with Case No. 34-2017-00216685-CU-
16 situated. OE-GDS)
Plaintiff, DEFENDANT HEALTH NET OF CALUfORNIA,
17 V.
mC.'S CASE MANAGEMENT STATEMENT
3Q
18 HEALTH NET OF CALIFORNIA, INC., a
Califomia corporation; and DOES 1 through 50, Date: April 3, 2020
19 inclusive, Time: 1:30 p.m.
Dept.: 41
20 Defendants. Judge: Hon. David De Alba
21 TOMAS R. ARANA, on behalf of himself, all Complaint Filed: April 5, 2017
others similarly situated. FAC Filed: June 29, 2017
22 Consolidated Complaint Filed: Dec. 21, 2017
Plaintiff,
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HEALTH NET OF CALIFORNIA, INC., a
25 Califomia corporation; and DOES 1 through 50,
inclusive,
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Defendants.
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DEFENDANT'S CASE MANAGEMENT STATEMENT
ACTIVE 49516568v3
1 Defendant Health Net of Califomia, Inc. ("Health Net" or "Defendant") submits the following Case
2 Management Conference Statement in advance of the Case Management Conference set for April 3, 2020
3 at 1:30 p.m.
4 CASE SUMMARY
5 In this consolidated wage-and-hour class and representative action, Plaintiffs Andrea Spears
6 ("Spears") and Tomas Arana ("Arana") have alleged a number of claims, including claims under the Private
7 Attomeys General Act of 2004 ("PAGA"). Plaintiffs have clarified that they only intend to proceed with
8 four:
9 1. Miscalculation Claim. According to Plaintiffs, this claim "subsumes" the
Miscalculation Class and PAGA claims.' Plaintiffs claim that Health Net should have
10 included "MedFlxWave" payments, "DenFlxWave" payments, SPOT Awards, ACA
11 Incentive payments and/or Wellness Incentive payments in the regular rate when calculating
overtime. Plaintiffs seek to recover unpaid overtime and PAGA penalties, as well as wage
12 statement and waiting-time penalties. RA481 at 0:19-21, 0:26-1:7, 1:21-27,6:5-7:4.
13 2. Off the Clock Claim. According to Plaintiffs, this claim "subsumes" an off the
clock class claim and PAGA claims.'^ Plaintiffs' theory of liability for this claim is that
14 Health Net failed to properly account for and/or record the hours worked by employees for
all the time spent booting up their computers and logging in. Plaintiffs seek to recover
15 unpaid overtime and straight-time pay, PAGA penalties, as well as wage statement and
16 waiting-time penalties. RA 481 at 1:21-27, 7:25-8:26.
17 3. Meal Period Premium PAGA Claim. Plaintiffs' theory of liability for this claim
is that Health Net failed to advise the employees to use the pay code "DTO" for payment of
18 meal period premiums, which resulted in numerous unpaid meal period premiums between
April 5, 2016 and December 31, 2016. Plaintiffs seek to recover meal period premiums and
19 PAGA penalties, as well as wage statement and waiting-time penalties. RA 481 at 1:21-
20 27, 9:18-27.
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22 1. ' Tlie Court certified the following class described as "[a]ll individuals who are or previously were
employed by Defendant Health Net of California, Inc. in Califomia and classified as non-exempt and
23 received 'MedFlxWave' payments, 'DenFlxWave' payments, SPOT Awards, ACA Incentive payments
and/or Wellness Incentive payments during the period of April 5, 2013 to December 31, 2016." RA 439
24 (8/30/19 Min. Order re Pltf.s' Mtn. Class Cert.) at 4-6.
25 As explained more fiilly in Health Net's recently filed Objections to Plaintiffs' Proposed Trial Plan (RA 483), Plaintiffs are
attempting an end-around on the Court's refusal to certify their oflf-the-cloclc claim. The Court rejected Plaintiffs' class
26 certification motion on this claim and instead, and on its own, certified a single question for class treatment: whether "the
time recording systems in effect during the relevant periods prevent an accurate capture of the start time of the class
27 members?" RA 439 (8/30/19 Min. Order re Pltf.s'Mtn. Class Cert.) at 5-6.
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DEFENDANT'S CASE MANAGEMENT STATEMENT
ACTIVE 49516568v3
1 4. EMPCenter Timekeeping System Off the Clock PAGA Claim. The theory of
liability for this claim is that Health Net failed to advise employees that they could manually
2 enter their start and stop times in the EMPCenter timekeeping system, which resulted in
3 employees not being paid for all hours worked beginning January 1, 2017 to the present.
Plaintiffs seek to recover unpaid overtime and straight-time pay, PAGA penalties, as well
4 as wage statement and waiting-time penalties. RA 481 at 1:21-27, 11:9-22.
5 Without conceding that any of the foregoing claims are appropriate for individual, class or representative
6 treatment, which Health Net does not concede, all other claims set forth in Plaintiffs' Consolidated
7 Complaint have otherwise been dismissed, not certified or abandoned—e.g.. Plaintiffs' rest break claims.
8 RA66,481.
9 MOTIONS TO STRIKE PLAINTIFFS' PAGA CLAIMS
10 On December 21, 2018, Health Net filed Motions for Why Arana's and Spears' Cases Should Not
11 Proceed as PAGA Representative Actions ("PAGA Motions"). On August 30, 2019, the Court denied the
12 PAGA Motions without prejudice and specifically permitted Health Net to renew these motions, which
13 Health Net did on March 6, 2020. RA 439, 452.
14 Health Net has moved to strike Arana's PAGA claims because Arana (1) is not an "aggrieved
15 employee" within the meaning of PAGA; (2) has abandoned his PAGA rest break claim; (3) Arana failed
16 to exhaust the administrative process (as to his regular rate, meal period, and off-the-clock PAGA claims);
17 (4) is judicially estopped from trying to litigate two new PAGA claiitis: a Meal Period and "EMPCenter"
18 Claim never before presented in this case, including in his LWDA Notices; and (5) whether old or new,
19 Arana's PAGA claims are unmanageable.
20 Health Net has moved to strike Spears' PAGA claims (regular rate, meal period, and rest period)
21 because she (1) has abandoned her PA(}A rest break claim; (2) failed to exhaust the administrative process
22 (as to her regular rate, meal break and off-the-clock claims); (3) is judicially estopped from trying to re-
23 craft her meal period PAGA claim; and (4) whether old or re-crafted. Spears' PAGA claims are
24 unmanageable.
25 Health Net had noticed its renewed motions to strike the PAGA claims so that they would be heard
26 on April 3, 2020. Since filing those motions. Plaintiffs' counsel requested an extension to oppose those
27 motions in light of the COVID-19 pandemic. Health Net agreed to that request and the parties are working
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DEFENDANT'S CASE MANAGEMENT STATEMENT
ACTIVE 49516568v3
1 on a revised briefing schedule, which the parties will submit to the Court as part of a Stipulation and
2 Proposed Order.
3 TRIAL PLAN
4 Plaintiffsfiledtheir trial presentafion and management plan (the "Trial Plan") on January 24, 2020,
5 and Defendant filed its response on March 6, 2020. Plaintiffs' response is currently due on March 20,
6 2020.
7 As set forth more fully in Health Net's response, Plaintiffs' purported Trial Plan is inadequate and
8 Plaintiffs have failed in their burden to demonstrate how the remaining claims are to be adjudicated
9 efficiently and consistently with due process considerations. See, e.g., Payton v. Csi Electrical
10 Contractors, Inc., 21 Cal. App. 5th 832, 843-45 (2018). The proposed Trial Plan lacks the detail and rigor
11 required to establish that Plaintiffs have a plan to try the remaining issues in a manner that the law requires.
12 See, e.g., id. at 843^5 (trial court properly rejected a proposed trial plan where the plan did not contain
13 any explanation of specific procedural tools to ensure it was valid and rigorous, nor any basis for the fact-
14 finder to move from quantities of data to conclusions about liability to class, and did not show how
15 individualized issues arising from employer's defenses could be managed). Both the law and this Court's
16 order require more than general statements conceming how Plaintiffs intend to move forward. Id.
17 Fundamentally, Plaintiffs' proposed Trial Plan fails to lay out a plan for the efficient, fair, and manageable
18 adjudication of the claims remaining in this action. S'ee raf.
19 ANTICIPATED MOTIONS
20 Health Net anticipates filing other motions that will affect the outcome of this action. Specifically,
21 Health Net anticipates filing a Motion for Summary Adjudication as to the issue certified for class
22 resolution, "[d]id the time recording system in effect during the relevant periods prevent an accurate capture
23 of the start time of the class members?" RA 439 at 5-6. Health Net will establish as a matter of law that
24 the time recording systems in effect during the relevant periods did not prevent an accurate capture ofthe
25 start time of the class members. Assuming the Court agrees, then it should dismiss this off-the-clock claim
26 associated with this issue. To the extent the Courtfindsto the contrary, which is unlikely, Health Net will
27 move to decertify the class on the grounds that individual issues predominate.
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DEFENDANT'S CASE MANAGEMENT STATEMENT
ACTIVE 4951&5m3
1 In addition. Health Net anticipates filing a Motion for Summary Adjudication as to Plaintiffs'
2 regular rate of pay claims based upon SPOT Awards and Wellness Incentive payments based upon a recent
3 Final Rule from the Department of Labor that clarifies that such payments are to be excluded from an
4 employees' regular rate of pay.
5 Health Net proposes filing these motions shortly after the April 3, 2020 hearing.
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7 DATED: March 18,2020 GREENBERG TRAURIG, LLP
8
9 By
Timothy J. Long
10 Rowena Santos
Samuel Hyde
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Attorneys for Defendant
12 HEALTH NET OF CALIFORNIA, INC.
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DEFENDANT'S CASE MANAGEMENT STATEMENT
ACTIVE 49516568v3
1 PROOF OF SERVICE
2 I am a citizen of the United States, over the age of 18 years, and not a party to or
interested in this action. I am employed in the County of Orange, State bf Califomia and my
3 business address is Greenberg Traurig, LLP, 18565 Jamboree Rd., Ste. 500, Irvine, CA 92612.
On March 18, 2020,1 caused to be served the following document(s): DEFENDANT
4 HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT, by
placing n the original ^ a tme copy into sealed envelopes addressed and served as follows:
5
Norman Blumenthal Attomeys for Plaintiff
6 Aparajit Bhowmik ANDREA SPEARS
Piya Mukherjee
7 Victoria B. Rivapalacio
BLUMENTHAL, NORDREHAUG &
8 BHOWMIK LLP
2255 Calle Clara
9 LaJolla, CA 92037
Email: norm@bamlawca.com
10 T: (858) 551-1223 F: (858)551-1232
Shaun Setareh Attomeys for Plaintiff
11 William Pao TOMAS R. ARANA
Alex Mcintosh
12 SETAREH LAW GROUP
315 S. Beverly Drive, Suite 315
13 Beverly Hills, CA 90212
Email: shaun@setarehlaw.com
14 william@setarehlaw.com
alex@setarehlaw.com
15 T: (310) 888-7771 F: (310) 888-0109
16 3 [BY MAIL] By placing the document(s) listed above in a sealed envelope with postage thereon
fully prepaid, in the United States mail at Irvine, Califomia addressed as set forth below. I am
17 familiar with thefirm'spractice of collection and processing correspondence for mailing. Under
that practice it would be deposited with the U.S. postal service on that same day with postage
18 thereon fully prepaid in the ordinary course of business.
3 [BY E-MAIL] By transmitting via e-mail the document(s) listed above to the addresses set forth
19 below on this date. This method of service was made pursuant to the agreement of counsel.
20 • [BY PERSONAL SERVICE] I caused such envelope to be delivered by hand to the offices
listed above.
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3 (STATE) I declare under penalty of perjury under the laws of the State of Califomia that the
22 above is tme and correct.
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I declare under penalty of perjury under the laws of the State of Califomia that the
24 foregoing is tme and correct.
25 Executed on March 18, 2020 at Irvine, Califomia
26 7^
27 Vanessa Hudak
PROOF OF SERVICE
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ACTIVE 47451961V1
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