Zaborowski et al v. MHN Government Services, Inc. et al

Filing 189

ORDER of Dismissal. Signed by Judge Susan Illston on 4/18/16. (tfS, COURT STAFF) (Filed on 4/18/2016)

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ALLEN RYAN VAUGHT, Pro Hac Vice
[e-mail]
BARON & BUDD, P.C.
15910 Ventura Boulevard
Encino Plaza, Suite 1600
Encino, CA 91436
Telephone:
818.839.2333
Facsimile:
818.986.9798

Attorneys for Defendants

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TIMOTHY J. LONG, CSBN 137591
[e-mail]
ORRICK, HERRINGTON & SUTCLIFFE LLP
400 Capitol Mall
Suite 3000
Sacramento, California 95814
Telephone:
916.329.7919
Facsimile:
916.329.4900

JAHAN C. SAGAFI, CSBN 224887
[e-mail]
CHRISTOPHER M. MCNERNEY
[e-mail]
OUTTEN & GOLDEN LLP
One Embarcadero Center, 35th Floor
San Francisco, CA 94111
Telephone:
415.638.8800
Facsimile:
415.638.8810

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KELLY M. DERMODY, CSBN 171716
[e-mail]
DANIEL M. HUTCHINSON, CSBN
239458
[e-mail]
LIEFF, CABRASER, HEIMANN &
BERNSTEIN, LLP
Embarcadero Center West
285 Battery Street, 29th Floor
San Francisco, CA 94111-3339
Telephone:
415.956.1000
Facsimile:
415.956.1008
LEWIS LYNN ELLSWORTH, CSBN
79998
[e-mail]
WARREN EVANS MARTIN, WSBN
17235
[e-mail]
GORDON THOMAS HONEYWELL
P.O. Box 1157
Tacoma, WA 98401-1157
Telephone:
253.620-6505
Facsimile:
253-620-6565

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RICHARD H. WOOSTER, WSBN 13752
[e-mail]
KRAM & WOOSTER
1901 South “I” Street
Tacoma, WA 98405
Telephone:
253.572.4161
Facsimile:
253.572.4167

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Attorneys for Plaintiffs

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STIPULATION OF DISMISSAL
C 12-05109; C 13-03016; C 14-01449

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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Zaborowski et al.,

Case No. C 12-05109 SI

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Plaintiffs,
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v.
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MHN Government Services, Inc. et al.,

STIPULATION FOR DISMISSAL WITH
PREJUDICE PURSUANT TO FED. R. CIV.
P. 41(a)(1)(A)(ii) AND N.D. CIV. L.R. 772(c)

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Defendants.
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Hiett et al.,
Plaintiffs,

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Case No. C 13-03016 SI

v.
MHN Government Services, Inc. et al.,
Defendants.

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Brown et al.,

Case No. C 14-01449 RS

SI

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Plaintiffs,
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v.
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MHN Government Services, Inc. et al.,
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Defendants.
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STIPULATION OF DISMISSAL
C 12-05109; C 13-03016; C 14-01449

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IT IS HEREBY STIPULATED AND AGREED, by and between the undersigned
attorneys of record for Plaintiffs and Defendants MHN Government Services Inc., Health Net
Inc., MHN Services, MHN Services Corporation, Managed Health Network, Inc. (“Defendants”)

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that Zaborowski, et al., v. MHN Government Services, Inc., et al., USDC, Northern District of
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California Case No. 12-05109, Hiett, et al., v. MHN Government Services, Inc., et al., USDC,

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Northern District of California Case No. 13-03016, and Brown, et al., v. MHN Government

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Services, Inc., et al., USDC, Northern District of California Case No. 14-01149, shall be

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dismissed with prejudice pursuant to Federal Rule of Civil Procedure 41(a)(2).

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I.

BACKGROUND
On or about June 14, 2011, a lawsuit, Brown, et al. v. MHN Government Services, Inc., et

al., Wash. Sup. Ct., Case No. 11-2-10229-2, was filed in Pierce County Superior Court in

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Washington State, in which plaintiffs asserted various violations of Washington state wage and
hour laws (“Brown”). That lawsuit was later removed to the United States District Court for the

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Western District of Washington on February 27, 2015, and then transferred to this Court on

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March 25, 2015. On or about May 15, 2002, a lawsuit, Hiett, et al. v. MHN Government Services,

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Inc., et al., N.D. Cal. No. 3:13-cv-03016-SI, was filed in United States District Court for the

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Western District of Washington, alleging various violations of the FLSA (“Hiett”). That lawsuit

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was transferred to this Court on July 1, 2013. On or about July 22, 2014, a lawsuit, Zaborowski,
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et al., v. MHN Government Services, Inc., et al., N.D. Cal. Case No. 3:12-cv-05109-SI, was filed

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in this Court, alleging various violations of the FLSA and California state wage and hour laws

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(“Zaborowski”). Zaborowski was later amended to assert various violations of other states’ wage

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and hour laws. Hiett was related to Zaborowski on or about September 9, 2013. Brown, Hiett

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and Zaborowski are referred to collectively as the “Cases.”

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STIPULATION OF DISMISSAL
C 12-05109; C 13-03016; C 14-01449

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On or about November 1, 2012, Defendant filed a motion to compel arbitration in

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Zaborowski. This motion was denied by this Court and thereafter appealed by Defendant to the

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Ninth Circuit Court of Appeals, which affirmed this Court’s decision. Defendant thereafter filed

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a petition for certiorari with the United States Supreme Court (“SCOTUS”), which granted that
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petition on or about October 1, 2015. Hiett and Brown have been stayed pending the appeal in
Zaborowski.
The Parties attended and participated in two private mediation sessions before Mark Rudy
on January 20, 2014 and June 18, 2015. Following extensive additional negotiations under Mr.
Rudy’s supervision, the Parties signed a Settlement Agreement.
Pursuant to the terms of that Settlement Agreement, Plaintiffs in the Cases filed a claim in

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arbitration with JAMS on behalf of themselves and all allegedly similarly situated individuals (as
also alleged in the Cases), to include all Covered Class Members (the “Action”). The Action

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sought adjudication of all the claims asserted in the Cases on behalf of all individuals covered by

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the Cases (i.e., the named Plaintiffs and all Opt-Ins) and all individuals potentially covered by the

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Cases (i.e., the members of the asserted but uncertified Rule 23 classes). The Parties stipulated to

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the appointment of the Honorable William J. Cahill (Ret.) of JAMS, who acted as the Arbitrator

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of the Action. On December 29, 2015, Plaintiffs filed a motion for preliminary approval of the
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settlement, which Judge Cahill heard on December 31, 2015. On January 4, 2016, Judge Cahill

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granted Plaintiffs’ motion for preliminary approval of the settlement, certifying a class for

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settlement purposes, which included all members of the putative classes alleged in the Cases.

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Judge Cahill then oversaw a scrupulous and conscientious settlement administration

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procedure utilized by the Parties to ensure a full and fair opportunity for all settlement class

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members to participate, object to or exclude themselves from the settlement. The Parties

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provided notice via U.S. mail and email of the settlement to all settlement class members through
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STIPULATION OF DISMISSAL
C 12-05109; C 13-03016; C 14-01449

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a third party settlement administrator and maintained a website through which settlement class

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members could file claims online and get information about the settlement. Settlement class

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members were given 30 days to object or opt out and 45 days to file claims. The settlement

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administration process also included reminders to all settlement class members who had not yet
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responded. The Parties worked collaboratively and diligently through each step in the settlement
process in an effort to provide class members ample opportunity to participate in the settlement.

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These efforts results in a strongly positive response rate from participating class members.

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Class notices were sent to all 2,910 Covered Class Members. Of those, approximately 1,900 filed

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valid claim forms.1 Notably, only nine Class Members opted out and not a single person
submitted any objection (timely or untimely). On April 7, 2016, Judge Cahill granted Plaintiffs’

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motions for final approval of the settlement. Judge Cahill noted at the final approval hearing that
he is happy to answer any questions that the Court may have regarding the settlement process and
substance.

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Pursuant to the terms of the Settlement Agreement, the parties then dismissed the appeal
(without prejudice) pending before SCOTUS, requesting that SCOTUS remand Zaborowski to
this Court in light of the Parties’ settlement for dismissal with prejudice along with Hiett and

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Brown.
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II.

STIPULATION OF DISMISSAL WITH PREJUDICE
The Parties have stipulated and agreed that the Cases against Defendants should be

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dismissed with prejudice and respectfully submit this Stipulation for approval by the Court for

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dismissal of the Cases with prejudice.
If and when this Court dismisses the Cases with prejudice, the remaining steps of the

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settlement will be implemented.

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The deadline for 79 Class Members to submit claims forms will be April 18, 2016.
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STIPULATION OF DISMISSAL
C 12-05109; C 13-03016; C 14-01449

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IT IS SO STIPULATED.

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DATED: April 15, 2016

/s/ Allen R. Vaught
Allen R. Vaught
BARON & BUDD LLP
Attorney for Plaintiffs

DATED: April 15, 2016

/s/ Jahan C. Sagafi
Jahan C. Sagafi
OUTTEN & GOLDEN LLP
Attorney for Plaintiffs

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DATED: April 15, 2016

/s/ Daniel M. Hutchinson
Daniel M. Hutchinson
Lieff, Cabraser, Heimann & Bernstein LLP
Attorney for Plaintiffs

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DATED: April 15, 2016

/s/ Warren Martin
Warren Martin
GORDON THOMAS HONEYWELL
Attorney for Plaintiffs

DATED: April 15, 2016

/s/ Richard Wooster
Richard Wooster
KRAM & WOOSTER LLP
Attorney for Plaintiffs

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DATED: April 15, 2016

/s/ Timothy J. Long
Timothy J. Long
ORRICK, HERRINGTON & SUTCLIFFE
LLP
Attorney for Defendants

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STIPULATION OF DISMISSAL
C 12-05109; C 13-03016; C 14-01449

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PURSUANT TO THE STIPULATION BETWEEN THE PARTIES, THE COURT HERBY
DISMISSES Zaborowski, et al., v. MHN Government Services, Inc., et al., USDC, Northern
District of California Case No. 12-05109, Hiett, et al., v. MHN Government Services, Inc., et
al., USDC, Northern District of California Case No. 13-03016, and Brown, et al., v. MHN
Government Services, Inc., et al., USDC, Northern District of California Case No. 14-01149
WITH PREJUDICE.
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DATED: April __, 2016

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HON. SUSAN ILLSTON
UNITED STATES DISTRICT COURT
JUDGE

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ATTESTATION
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I hereby attest that I have on file all holographic signatures corresponding to any
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signatures indicated by a conformed signature (/s/) within this e-filed document.
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/s/ Jahan C. Sagafi
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STIPULATION OF DISMISSAL
C 12-05109; C 13-03016; C 14-01449