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  • Andrea Spears vs. Health Net of California Inc Unlimited Civil document preview
  • Andrea Spears vs. Health Net of California Inc Unlimited Civil document preview
  • Andrea Spears vs. Health Net of California Inc Unlimited Civil document preview
  • Andrea Spears vs. Health Net of California Inc Unlimited Civil document preview
  • Andrea Spears vs. Health Net of California Inc Unlimited Civil document preview
  • Andrea Spears vs. Health Net of California Inc Unlimited Civil document preview
  • Andrea Spears vs. Health Net of California Inc Unlimited Civil document preview
  • Andrea Spears vs. Health Net of California Inc Unlimited Civil document preview
						
                                

Preview

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. 11 12 SUPERIOR COURT OF THE STATE OF CALIFORNIA 13 COUNTY OF SACRAMENTO 14 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, 23 24 HEALTH NET OF CALIFORNIA, INC., a 25 Califomia corporation; and DOES 1 through 50, inclusive, 26 Defendants. 27 28 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. 21 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. 28 1 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 28 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. 28 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. 6 7 DATED: March 18,2020 GREENBERG TRAURIG, LLP 8 9 By Timothy J. Long 10 Rowena Santos Samuel Hyde 11 Attorneys for Defendant 12 HEALTH NET OF CALIFORNIA, INC. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 21 3 (STATE) I declare under penalty of perjury under the laws of the State of Califomia that the 22 above is tme and correct. 23 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 28 ACTIVE 47451961V1 r€C£!VED fi^} DROP BOX im m 18 PH 3- 55