Rodriguez v. Kraft Foods Group, Inc.

Filing 40

ORDER After Hearing on Motion for Preliminary Approval of Class Action Settlement signed by Magistrate Judge Erica P. Grosjean on 12/14/2015. (Martinez, A)

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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF CALIFORNIA

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JOSE RODRIGUEZ, on behalf of himself and )
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all of others similarly situated,
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Plaintiffs,
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v.
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KRAFT FOODS GROUPS, INC., a Virginia )
corporation, and DOES 1 through 100,
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inclusive,
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Defendant.
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ORDER AFTER HEARING ON MOTION
FOR PRELIMINARY APPROVAL OF CLASS
ACTION SETTLEMENT

The Court held a hearing on Plaintiff‟s Motion for Preliminary Approval of Class Action

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Case No.: 1:14-cv1137-LJO-EPG

Settlement on December 4, 2015. R. Duane Westrup personally appeared on behalf of the Plaintiffs,
and Douglas Farmer appeared on behalf of the Defendant. The Court heard arguments on a number of
issues regarding the fairness of the settlement and requested additional information on several issues.
Accordingly, no later than January 8, 2015, the parties shall provide the following information to the
Court:
I.

Fairness of the Class Settlement

It is well established that “a class representative must be part of the class and „possess the same
interest and suffer the same injury‟ as the class members.” Wal-Mart Stores, Inc. v. Dukes, 131 S.Ct.

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2541, 2550 (2011). Moreover, Rule 23(a) provides that the named plaintiffs are appropriate

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representatives where: “(1) the class is so numerous that joinder of all members is impracticable; (2)

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there are questions of law or fact common to the class; (3) the claims or defenses of the representative

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parties are typical of the claims or defenses of the class; and (4) the representative parties will fairly

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and adequately protect the interests of the class.”
As discussed on the record, more information is needed to determine if Mr. Rodriquez adequately

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represents the class. Accordingly, Mr. Rodriquez shall submit a supplemental declaration outlining his

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specific allegations and how they are representative of the class. Mr. Rodriguez may also provide

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additional information related to his contributions to the litigation, so the Court can assess an

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appropriate payment for serving as a class representative.

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Additionally, the Defendant indicated that approximately 150 employees were interviewed

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regarding the frequency of missed meals and that a summary of this information is available. The

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Defendant shall provide all declarations or related summaries of this investigation to the Court, to the

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extent they are not privileged.

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Furthermore, the parties indicated that the class suffered missed or late meals approximately 70 to

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75 percent of the time, however, class members are only getting compensated for one hour of time per

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week, at an hourly rate of ten dollars an hour. Plaintiffs‟ counsel indicated that one hour of pay a

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week is the standard compensation for this type of wage and hour violation. Plaintiff shall provide any

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legal support for this proposition.
Finally, the parties shall indicate what the average hourly rate of pay is for all employees in the

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purported class, so that the Court can assess whether ten dollars an hour is a fair hourly rate of

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reimbursement for the class. Counsel shall also indicate whether it is feasible to use the actual rate of

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pay for each affected employee, in lieu of the ten dollar an hour amount.
II.

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Injunctive Relief/Prevention of Future Violations
Defendant shall submit an affidavit from a business person with personal knowledge outlining

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what steps have been taken to rectify the problems contained in the complaint, and what practices have

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been devised to prevent future violations.

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III.

The Notice to Class Members.

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The following changes need to be made to the Notice to the Class Members (Doc. 35-2, pgs. 33-

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39). Additionally, these changes shall also be incorporated into the corresponding sections of the

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Settlement Agreement (Doc. 34, pgs. 14-31):

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A) The time for disputing the number of qualified work shifts for purposes of calculating the

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gross payout amount shall be changed from thirty (30) to forty-five days (45) in Section 5,

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pgs. 2-3, “What are the Terms of the Class Settlement;”

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B) The notice shall be clear that the release of claims in Section 6, pg. 3, "How Does the
Settlement Affect My Rights," is only limited to the time outlined in the complaint, rather
than a complete release of these claims without a time limitation;
C) Under Section 6, pg. 3, "How Does the Settlement Affect My Rights,” shall indicate that
the Stipulation of Settlement and Release can be viewed at the United States District Court
for the Eastern District of California, and by contacting Plaintiff‟s counsel at the address
listed at the end of the document;
D) Plaintiffs shall be advised under Section 7, pg. 3, “What Do I Need To Do to Receive a

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Settlement Payment,” that they will receive the settlement payment approximately twenty

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(20) days after the Court’s order on the Final Approval, rather than twenty days after the

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final approval hearing itself;

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E) If participants want to object, under Section 8, pg. 3, “What if I Don‟t Want to Participate

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in this Settlement,” they shall be provided with a check-off form indicating their desire to

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be excluded, as well as a self-addressed stamped envelope to do so. Moreover, the address
and specific contact information of the claims administrator shall be included in this
section. Finally, potential class members may request that they may opt-out of the class
within sixty (60) days of the mailing of the initial notice to class members;
F) The explanation of the PAGA claims outlined on the top of page 4 under this same section
needs to be more fully explained so that a lay person can understand this provision;
G) Under Section 9, pg. 4, “What if I Want to Object to this Settlement,” class members shall
be advised that objections can be filed up to thirty days before the hearing, and they can
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appear personally or by telephone at the hearing. Moreover, failure to file a written

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objection will not prevent class members from objecting at the hearing, however, the Court

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may choose not to address the objection if a written objection is not timely filed as

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required. These modifications shall also be incorporated as appropriate in Section 16, pg. 6.

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Moreover, the address and specific contact information of the claims administrator shall be

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included in this section, as well as in Section 17, “How Do I Get More Information.”

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Finally, the case number under this section shall be changed to “EPG” rather than “GSA,”

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to reflect the judicial reassignment of this case; and

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H) Section 13, “How Will the Lawyers Be Paid,” shall include a sentence indicating that

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copies of any Motion for Attorney‟s Fees may be obtained by contacting class counsel at

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the address listed at the end of the document, and that any objections to the Motion for

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Attorney‟s Fees can be filed with the Court, or be made at the time of the final approval

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hearing.
IV.

Attorney’s Fees

Plaintiffs‟ counsel shall file a formal Motion for Attorney‟s fees. The motion may be filed
separately, or as part of the Motion for Final Approval of the Class Settlement. Any motion for
attorneys‟ fees shall include documentation of any billable hours and evidence supporting the
reasonableness of the hourly rate requested.

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IT IS SO ORDERED.

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Dated:

December 14, 2015

/s/
UNITED STATES MAGISTRATE JUDGE

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