Preview
1 Timothy J. Long (SBN 137591)
longt@gtlaw.com
2 Samuel S. Hyde (SBN 327065)
hydes@gtlaw.com
3 GREENBERG TRAURIG, LLP
4 1201 K Street, Suite 1100 FILED/ENDORSED
Sacramento, Califomia 95814
5 Telephone: 916.442.1111
Facsimile: 916.448.1709 NOV - 3 2020
6
By:. HPFiyiFirnw
Deputy Clerk
7 Attomeys for Defendant
8 HEALTH NET OF CALIFORNIA, INC.
9
10 SUPERIOR COURT OF THE STATE OF CALIFORNIA
11 FOR THE COUNTY OF SACRAMENTO
12
13 ANDREA SPEARS, an individual, on behalf
of herself and on behalf of all persons
Consolidated Case No. 34-2017-00210560-
CU-OE-GDS I
14 similarly situated, DEFENDANT HEALTH NET OF
15 Plaintiff, CALIFORNIA, INC.'S CASE
MANAGEMENT STATEMENT
16
HEALTH NET OF CALIFORNIA, INC., a
17 Califomia Corporation; and Does 1 through Date: November 13,2020
50, inclusive. Time: 1:30 p.m.
18 Courtroom: Dept. 41
Defendants Judge: Hon. David De Alba
19
Original Complaint Filed: April 5, 2017
20 FAC Filed: Jiine 29,2017
Consolidated Complaint Filed: Dec. 21, 2017
21 TOMAS R. ARANA, on behalf of himself, all
others similarly situated,
22
Plaintiff,
23
24
HEALTH NET OF CALIFORNL\, INC., a
25 Califomia corporation; and DOES 1-50,
inclusive.
26
Defendant.
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DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT
1 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 at 1:30 p.m. in Department 41. The Court further directed the
4 parties to submit a case management statement within 10 days prior to that case management
5 conference, and specifically instructed the parties to include a detailed discussion of the procedural
6 history of this case. Defendant Health Net of Califomia, Inc. ("FINCA") now respectfully submits
7 the following case management statement.
8 PROCEDURAL HISTORY
9 Plaintiff Andrea Spears ("Spears") filed her Class Action Complaint against HNCA on April
10 5, 2017 in Sacramento County Superior Court, and filed a First Amended Complaint on June 29,
11 2017. RA 1, 13. On May 11, 2017, Plaintiff Tomas Arana ("Arana," and collectively with Spears,
12 "Plaintiffs") filed his Class Action Complaint in Santa Clara County Superior Court against Health
13 Net, Inc. ("HNI"). By stipulation, Arana agreed to dismiss his Complaint filed in Santa Clara County
14 Superior Court and file a new Complaint in Sacramerito County Superior Court, naming HNCA as
15 Defendant. Arana filed that Complaint on August 1, 2017. RA 22. Thereafter, the parties stipulated
16 to consolidation of Spears' and Arana's cases, and the Court ordered the cases consolidated on
17 October 11, 2017. RA 32. Plaintiffsfileda Consolidated Complaint on December 22, 2017, which
18 is now the operative Complaint in this matter. RA 66.
19 The parties proceeded through discovery, and HNCA filed a Motion for Summary
20 Adjudication on February 5,2018. RA 100. Specifically, HNCA sought summary adjudication with
21 respect to the following issues: (1) HNCA's alleged failure to include cash payments in lieu of
22 benefits in the regular rate of pay; (2) HNCA's alleged failure to include bonus payments in the
23 regular rate of pay; (3) HNCA's alleged failure to include shift differential premiums in the regular
24 rate of pay; (4) HNCA's alleged rounding practice; and (5) the derivative claims under the Private
25 Attomeys General Act ("PAGA") for each alleged violation. See RA 101. The Court, Judge
26 Christopher Krueger presiding, granted the motion with respect to Plaintiffs' shift differential and
27 rounding theories, as well as the P A G A claims derivative of each. RA 272. The Court denied the
28
motion with respect to Plaintiffs' cash in lieu of benefits and bonus theories, as well as the PAGA
2 ^ .
DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT
1 claims derivative of each. Id.
2 On November 19,2018, HNCA filed a Renewed Motion for Summary Adjudication. RA 280.
3 HNCA sought summary adjudication as to Plaintiffs' cash in lieu of benefits and bonus theories, as
4 well as the derivative PAGA claims. RA 282. Although the motion was originally scheduled to be
5 heard before Judge Perkins, and although this case was assigned to Department 35 for all purposes,
6 the motion was subsequently rescheduled before Judge Krueger in Department 54 after Judge Perkins
7 later declined to hear it. See RA 344, 354. Judge Krueger denied that motion on Febmary 26, 2019,
8 finding that HNCA had not satisfied the procedural requirements for filing a renewed motion. RA
9 374. In addition, the parties stipulated that upon denial of this motion, the Court could grant
10 certification of the claims involved in that motion. RA 439 at 7.
11 On December 21, 2018, Plaintiffs moved for class certification with respect to the following
12 claims and theories: (1) HNCA's alleged failure to provide all requisite meal periods under Califomia
13 law; (2) HNCA's alleged failure to provide all requisite rest periods under Califomia law; and (3)
14 HNCA's alleged failure to compensate employees for work performed off the clock. See id. On
15 August 30, 2019, the Court denied Plaintiffs' motion as to Plaintiffs' meal and rest break claims,
16 finding that "individual issues would predominate" as to each. RA 439 at 5. The Court reached the
17 same conclusion with respect to Plaintiffs' allegations that employees performed work after clocking
18 out. Id. at 6. With respect to Plaintiffs' allegations of performing work prior to clocking in, the Court
19 sua sponte certified a particular issue for class-wide resolution, specifically whether "the time
20 recording systems in effect during the relevant periods prevent[ed] an accurate capture of the start
21 time of the class members[.]" Id. Per the stipulation between the parties, the Court also certified a
22 class of "All individuals who are or previously were employed by Defendant Health Net of Califomia,
23 Inc. in Califomia and classified as non-exempt and received 'MedFlxWave' payments,
24 'DenFlxWave' payments, SPOT Awards, ACA Incentive payments and/or Wellness Incentive
25 payments during the period of April 5, 2013 to December 31, 2016." Id. at 7.
26 On the same day Plaintiffsfiledtheir motion for class certification, and pursuant to stipulation
27 of the parties and by order ofthe Court (see RA 257 at 3), HNCA filed its Motions as to Why Spears'
28 and Arana's Cases Should Not Proceed as a PAGA Representative Action. RA 321, 322. HNCA
3
DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT
1 contended that Arana's claims were time-barred, that Arana lacked standing, and that Arana's meal
2 period, rest period, and off-the-clock PAGA allegations were unmanageable. RA 316. With respect
3 to Spears, HNCA argued that Spears could not pursue an off-the-clock claim because she had never
4 exhausted it in her Notice Letter to the LWDA, and that her meal and rest period claims were
5 unmanageable in the same manner as Arana's. RA 315. The Court denied those motions without
6 prejudice on September 30, 2019. RA452.
7 Plaintiffsfiledtheir Trial Presentation and Management Plan ("Trial Plan") on January 24,2020. RA
8 481. On March 6, 2020, HNCA filed Motions to Strike Spears' and Arana's Representative PAGA
9 Claims. RA 485, 488. The Court held a hearing on those motions on October 16, 2020, and denied
10 them by minute order on October 22, 2020. RA 545.
11 DEFENDANT'S STATEMENT
12 Based on the colloquy with the Court during the hearing on the motions to strike, HNCA
13 intends to file a Motion for Summary Adjudication. That Motion will likely cover at least the
14 following topics: (1) whether Arana's PAGA claims are barred by the statute of limitations; (2)
15 whether Spears' and Arana's PAGA claims are barred in whole or in part for failure to exhaust; and
16 (3) whether Spears and Arana should be judicially estopped from pursuing certain theories of liability.
17 These issues were not addressed in HNCA's prior Motions for Summary Adjudication. See CaL Civ.
18 Proc. Code § 437c(f)(2). Moreover, because the Court denied HNCA's Motions to Strike Spears'
19 and Arana's Representative PAGA Claims on procedural grounds, those issues have never been
20 resolved on the merits. HNCA intends to file this Motion by the end of this calendar year. HNCA
21 would like to discuss and set an appropriate briefing schedule for this motion at the case management
22 conference.
23 In addition, HNCA's Objections to Plaintiffs' Trial Plan set forth numerous issues with the
24 way Plaintiffs seek to try this case, not least of which is manageability, ^ee RA 483. Those issues
25 remain outstanding and were not addressed at the October 16, 2020 hearing. HNCA proposes that
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/
///
• •
26 the Court address these issues after mling on HNCA's motion for summary adjudication.
DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT
1 Finally, the parties have engaged in preliminary discussions regarding the possibility of
2 mediation. Following resolution of HNCA's motion for summary adjudication, HNCA is amenable
3 to entering into mediation.
4
5 DATED: November 3, 2020 GREENBERG TRAURIG, LLP
6
7 By:
TIMOTHY J. LONG
8 Attomeys for Defendant
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 Net of Califomia, Inc.
Sacramento County Superior Court Case No. 34-2017-00210560
DECLARATION OF SERVICE
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 Sacramento, State of Califomia and my business
address is Greenberg Traurig, LLP, 1201 K Street, Suite 1100, Sacramento, CA 95814.
On this day, I caused to be served the following document(s):
DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT
STATEMENT
By placing Q the original ^ a true copy into sealed envelopes addressed and served as
follows:
Norman Blumenthal
10 Aparajit Bhowmik Attorneys for Plaintiff Andrea Spears
Piya Mukherjee
11 Victoria B. Rivapalacio
BLUMENTHAL, NORDREHAUG «&
12 BHOWMIK LLP
2255 Calle Clara
13 La Jolla, CA 92037
Email: norm@bamlawca.com
14 aj@bamlawca.com
15 piva(3),bamlawca.com
victoria@bamlawca.com
16 Telephone: (858)551-1223
Facsimile: (858) 551-1232
17
Shaun Setareh
18 William M. Pao Attorneys for Plaintiff Tomas R. Arana
19 Jose Maria D. Patino, Jr.
SETAREH LAW GROUP
315 S. Beverly Drive, Suite 315
20 Beverly Hills, CA 90212
Email: shaun(a),setarehlaw.com
21 william(2!setarehlaw.com
iose(2),setarehlaw.com
22 Telephone: (310)888-7771
Facsimile: r31 O'l 888-0109
3 BY ELECTRONIC TRANSMISSION: By transmitting a true and a correct copy thereof
24 attached to the electronic email address(es) as set forth above.
25 I declare under penalty of perjury under the laws of the State of Califomia that the foregoing
is tme and correct.
26 Executed on November 3, 2020, at Sacramento, Califomia.
27
28 Marlene Cells
1
PROOF OF SERVICE
Preview
1 Timothy J. Long (SBN 137591) longt@gtlaw.com 2 Samuel S. Hyde (SBN 327065) hydes@gtlaw.com 3 GREENBERG TRAURIG, LLP 4 1201 K Street, Suite 1100 FILED/ENDORSED Sacramento, Califomia 95814 5 Telephone: 916.442.1111 Facsimile: 916.448.1709 NOV - 3 2020 6 By:. HPFiyiFirnw Deputy Clerk 7 Attomeys for Defendant 8 HEALTH NET OF CALIFORNIA, INC. 9 10 SUPERIOR COURT OF THE STATE OF CALIFORNIA 11 FOR THE COUNTY OF SACRAMENTO 12 13 ANDREA SPEARS, an individual, on behalf of herself and on behalf of all persons Consolidated Case No. 34-2017-00210560- CU-OE-GDS I 14 similarly situated, DEFENDANT HEALTH NET OF 15 Plaintiff, CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT 16 HEALTH NET OF CALIFORNIA, INC., a 17 Califomia Corporation; and Does 1 through Date: November 13,2020 50, inclusive. Time: 1:30 p.m. 18 Courtroom: Dept. 41 Defendants Judge: Hon. David De Alba 19 Original Complaint Filed: April 5, 2017 20 FAC Filed: Jiine 29,2017 Consolidated Complaint Filed: Dec. 21, 2017 21 TOMAS R. ARANA, on behalf of himself, all others similarly situated, 22 Plaintiff, 23 24 HEALTH NET OF CALIFORNL\, INC., a 25 Califomia corporation; and DOES 1-50, inclusive. 26 Defendant. 27 28 DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT 1 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 at 1:30 p.m. in Department 41. The Court further directed the 4 parties to submit a case management statement within 10 days prior to that case management 5 conference, and specifically instructed the parties to include a detailed discussion of the procedural 6 history of this case. Defendant Health Net of Califomia, Inc. ("FINCA") now respectfully submits 7 the following case management statement. 8 PROCEDURAL HISTORY 9 Plaintiff Andrea Spears ("Spears") filed her Class Action Complaint against HNCA on April 10 5, 2017 in Sacramento County Superior Court, and filed a First Amended Complaint on June 29, 11 2017. RA 1, 13. On May 11, 2017, Plaintiff Tomas Arana ("Arana," and collectively with Spears, 12 "Plaintiffs") filed his Class Action Complaint in Santa Clara County Superior Court against Health 13 Net, Inc. ("HNI"). By stipulation, Arana agreed to dismiss his Complaint filed in Santa Clara County 14 Superior Court and file a new Complaint in Sacramerito County Superior Court, naming HNCA as 15 Defendant. Arana filed that Complaint on August 1, 2017. RA 22. Thereafter, the parties stipulated 16 to consolidation of Spears' and Arana's cases, and the Court ordered the cases consolidated on 17 October 11, 2017. RA 32. Plaintiffsfileda Consolidated Complaint on December 22, 2017, which 18 is now the operative Complaint in this matter. RA 66. 19 The parties proceeded through discovery, and HNCA filed a Motion for Summary 20 Adjudication on February 5,2018. RA 100. Specifically, HNCA sought summary adjudication with 21 respect to the following issues: (1) HNCA's alleged failure to include cash payments in lieu of 22 benefits in the regular rate of pay; (2) HNCA's alleged failure to include bonus payments in the 23 regular rate of pay; (3) HNCA's alleged failure to include shift differential premiums in the regular 24 rate of pay; (4) HNCA's alleged rounding practice; and (5) the derivative claims under the Private 25 Attomeys General Act ("PAGA") for each alleged violation. See RA 101. The Court, Judge 26 Christopher Krueger presiding, granted the motion with respect to Plaintiffs' shift differential and 27 rounding theories, as well as the P A G A claims derivative of each. RA 272. The Court denied the 28 motion with respect to Plaintiffs' cash in lieu of benefits and bonus theories, as well as the PAGA 2 ^ . DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT 1 claims derivative of each. Id. 2 On November 19,2018, HNCA filed a Renewed Motion for Summary Adjudication. RA 280. 3 HNCA sought summary adjudication as to Plaintiffs' cash in lieu of benefits and bonus theories, as 4 well as the derivative PAGA claims. RA 282. Although the motion was originally scheduled to be 5 heard before Judge Perkins, and although this case was assigned to Department 35 for all purposes, 6 the motion was subsequently rescheduled before Judge Krueger in Department 54 after Judge Perkins 7 later declined to hear it. See RA 344, 354. Judge Krueger denied that motion on Febmary 26, 2019, 8 finding that HNCA had not satisfied the procedural requirements for filing a renewed motion. RA 9 374. In addition, the parties stipulated that upon denial of this motion, the Court could grant 10 certification of the claims involved in that motion. RA 439 at 7. 11 On December 21, 2018, Plaintiffs moved for class certification with respect to the following 12 claims and theories: (1) HNCA's alleged failure to provide all requisite meal periods under Califomia 13 law; (2) HNCA's alleged failure to provide all requisite rest periods under Califomia law; and (3) 14 HNCA's alleged failure to compensate employees for work performed off the clock. See id. On 15 August 30, 2019, the Court denied Plaintiffs' motion as to Plaintiffs' meal and rest break claims, 16 finding that "individual issues would predominate" as to each. RA 439 at 5. The Court reached the 17 same conclusion with respect to Plaintiffs' allegations that employees performed work after clocking 18 out. Id. at 6. With respect to Plaintiffs' allegations of performing work prior to clocking in, the Court 19 sua sponte certified a particular issue for class-wide resolution, specifically whether "the time 20 recording systems in effect during the relevant periods prevent[ed] an accurate capture of the start 21 time of the class members[.]" Id. Per the stipulation between the parties, the Court also certified a 22 class of "All individuals who are or previously were employed by Defendant Health Net of Califomia, 23 Inc. in Califomia and classified as non-exempt and received 'MedFlxWave' payments, 24 'DenFlxWave' payments, SPOT Awards, ACA Incentive payments and/or Wellness Incentive 25 payments during the period of April 5, 2013 to December 31, 2016." Id. at 7. 26 On the same day Plaintiffsfiledtheir motion for class certification, and pursuant to stipulation 27 of the parties and by order ofthe Court (see RA 257 at 3), HNCA filed its Motions as to Why Spears' 28 and Arana's Cases Should Not Proceed as a PAGA Representative Action. RA 321, 322. HNCA 3 DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT 1 contended that Arana's claims were time-barred, that Arana lacked standing, and that Arana's meal 2 period, rest period, and off-the-clock PAGA allegations were unmanageable. RA 316. With respect 3 to Spears, HNCA argued that Spears could not pursue an off-the-clock claim because she had never 4 exhausted it in her Notice Letter to the LWDA, and that her meal and rest period claims were 5 unmanageable in the same manner as Arana's. RA 315. The Court denied those motions without 6 prejudice on September 30, 2019. RA452. 7 Plaintiffsfiledtheir Trial Presentation and Management Plan ("Trial Plan") on January 24,2020. RA 8 481. On March 6, 2020, HNCA filed Motions to Strike Spears' and Arana's Representative PAGA 9 Claims. RA 485, 488. The Court held a hearing on those motions on October 16, 2020, and denied 10 them by minute order on October 22, 2020. RA 545. 11 DEFENDANT'S STATEMENT 12 Based on the colloquy with the Court during the hearing on the motions to strike, HNCA 13 intends to file a Motion for Summary Adjudication. That Motion will likely cover at least the 14 following topics: (1) whether Arana's PAGA claims are barred by the statute of limitations; (2) 15 whether Spears' and Arana's PAGA claims are barred in whole or in part for failure to exhaust; and 16 (3) whether Spears and Arana should be judicially estopped from pursuing certain theories of liability. 17 These issues were not addressed in HNCA's prior Motions for Summary Adjudication. See CaL Civ. 18 Proc. Code § 437c(f)(2). Moreover, because the Court denied HNCA's Motions to Strike Spears' 19 and Arana's Representative PAGA Claims on procedural grounds, those issues have never been 20 resolved on the merits. HNCA intends to file this Motion by the end of this calendar year. HNCA 21 would like to discuss and set an appropriate briefing schedule for this motion at the case management 22 conference. 23 In addition, HNCA's Objections to Plaintiffs' Trial Plan set forth numerous issues with the 24 way Plaintiffs seek to try this case, not least of which is manageability, ^ee RA 483. Those issues 25 remain outstanding and were not addressed at the October 16, 2020 hearing. HNCA proposes that 27 28 / /// • • 26 the Court address these issues after mling on HNCA's motion for summary adjudication. DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT 1 Finally, the parties have engaged in preliminary discussions regarding the possibility of 2 mediation. Following resolution of HNCA's motion for summary adjudication, HNCA is amenable 3 to entering into mediation. 4 5 DATED: November 3, 2020 GREENBERG TRAURIG, LLP 6 7 By: TIMOTHY J. LONG 8 Attomeys for Defendant HEALTH NET OF CALIFORNIA, INC. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT Andrea Spears, et al. vs. Health Net of Califomia, Inc. Sacramento County Superior Court Case No. 34-2017-00210560 DECLARATION OF SERVICE 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 Sacramento, State of Califomia and my business address is Greenberg Traurig, LLP, 1201 K Street, Suite 1100, Sacramento, CA 95814. On this day, I caused to be served the following document(s): DEFENDANT HEALTH NET OF CALIFORNIA, INC.'S CASE MANAGEMENT STATEMENT By placing Q the original ^ a true copy into sealed envelopes addressed and served as follows: Norman Blumenthal 10 Aparajit Bhowmik Attorneys for Plaintiff Andrea Spears Piya Mukherjee 11 Victoria B. Rivapalacio BLUMENTHAL, NORDREHAUG «& 12 BHOWMIK LLP 2255 Calle Clara 13 La Jolla, CA 92037 Email: norm@bamlawca.com 14 aj@bamlawca.com 15 piva(3),bamlawca.com victoria@bamlawca.com 16 Telephone: (858)551-1223 Facsimile: (858) 551-1232 17 Shaun Setareh 18 William M. Pao Attorneys for Plaintiff Tomas R. Arana 19 Jose Maria D. Patino, Jr. SETAREH LAW GROUP 315 S. Beverly Drive, Suite 315 20 Beverly Hills, CA 90212 Email: shaun(a),setarehlaw.com 21 william(2!setarehlaw.com iose(2),setarehlaw.com 22 Telephone: (310)888-7771 Facsimile: r31 O'l 888-0109 3 BY ELECTRONIC TRANSMISSION: By transmitting a true and a correct copy thereof 24 attached to the electronic email address(es) as set forth above. 25 I declare under penalty of perjury under the laws of the State of Califomia that the foregoing is tme and correct. 26 Executed on November 3, 2020, at Sacramento, Califomia. 27 28 Marlene Cells 1 PROOF OF SERVICE