McKinney-Drobnis v. Massage Envy Franchising, LLC
Filing
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ORDER GRANTING PLAINTIFFS' RENEWED MOTION FOR FINAL APPROVAL OF SETTLEMENT. Signed by Judge Maxine M. Chesney on May 24, 2022. (mmclc1, COURT STAFF) (Filed on 5/24/2022)
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IN THE UNITED STATES DISTRICT COURT
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FOR THE NORTHERN DISTRICT OF CALIFORNIA
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BAERBEL MCKINNEY-DROBNIS,
JOSEPH B. PICCOLA, and CAMILLE
BERLESE, individually and on behalf of
all others similarly situated,
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Plaintiffs,
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ORDER GRANTING PLAINTIFFS'
RENEWED MOTION FOR FINAL
APPROVAL OF SETTLEMENT
v.
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United States District Court
Northern District of California
Case No. 16-cv-06450-MMC
MASSAGE ENVY FRANCHISING, LLC,
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Defendant.
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Before the Court is plaintiffs' Renewed Motion, filed March 30, 2022, "for Final
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Approval of the Class Action Settlement and Entry of Final Judgment." The matter came
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on regularly for hearing on May 20, 2022. John J. Nelson and Jeffrey R. Krinsk of
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Finkelstein & Krinsk LLP appeared on behalf of plaintiffs Baerbel McKinney-Drobnis
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("McKinney-Drobnis"), Joseph B. Piccola ("Piccola"), and Camille Berlese ("Berlese").
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Luanne Sacks and Mike Scott of The Sacks Law Office, and Kahn Scolnick of Gibson,
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Dunn & Crutcher, LLP, appeared on behalf of defendant Massage Envy Franchising LLC
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("MEF"). Theodore H. Frank of the Center for Class Action Fairness appeared on behalf
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of objector Kurt Oreshack ("Oreshack").
Having read and considered the written submissions filed by plaintiffs, MEF, and
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Oreshack, as well as objections filed in connection with the hearing conducted February
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28, 2020, and having considered the oral arguments made at the hearing conducted May
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20, 2022, the Court, for the reasons stated on the record at the hearing, hereby GRANTS
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the motion, as follows:
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//
United States District Court
Northern District of California
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1. The notice provided to the class was the best notice practicable under the
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circumstances and fully complied with Federal Rule of Civil Procedure Rule 23, due
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process, and all other applicable laws.
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2. Pursuant to Rules 23(a) and (b)(3), the Court certifies for settlement purposes
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only a class comprising "all Members of any ME Location since November 4, 2006, who
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paid for a Fee Increase prior to the date of Preliminary Approval." (See Krinsk Decl.
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[Doc. No. 164-1] Ex. A at 4.) "Excluded from the class are: (1) any person who is an
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employee, director, officer, or agent of MEF or any of the Released Parties; (2) any
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judge, justice, judicial officer, or judicial staff" of the United States District Court for the
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Northern District of California; and (3) "class counsel, MEF's counsel, and any of their
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staff." (See id.). Also excluded from the class are 523 individuals, identified in Exhibit B
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to the Declaration of James R. Page (Doc. No. 141), who timely excluded themselves
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from the class.
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3. Having analyzed with heightened scrutiny the proposed settlement agreement,
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as amended March 29, 2022, and, in particular, having considered and weighed the
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factors relevant to a determination as to fairness and adequacy, see Churchill Village,
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L.L.C. v. General Electric, 361 F.3d 566, 575 (9th Cir. 2004), as well as the factors
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bearing on the question of collusion, see In re Bluetooth Headset Products Liability Litig.,
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654 F.3d 935, 947 (9th Cir. 2011), the Court overrules the objections to the settlement
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and, as discussed in detail on the record at the hearing, finds the settlement is fair,
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reasonable, and adequate.
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4. With respect to the portion of the attorney's fee award that is "attributable to the
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award of the coupons," see 28 U.S.C. § 1712(a), the Court defers ruling until after the
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expiration of the redemption period. See In re HP Inkjet Printer Litig., 716 F.3d 1173,
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1184 (9th Cir. 2013) (holding court "must determine a reasonable contingency fee based
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on the actual redemption value of the coupons"). With respect to the portion of the
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attorney's fee award that is "not based upon . . . the coupons," see 28 U.S.C.
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§ 1712(c)(2), the Court, as set forth in detail on the record at the hearing, has used a
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lodestar, see 28 U.S.C. § 1712(b)(1); see also In re HP Inkjet Printer, 716 F.3d at 1183
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(holding portion of fee award attributable to non-coupon relief "'shall be' calculated . . .
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using the lodestar method") (internal quotation and citation omitted), and calculated such
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amount to be $938,026.22, which figure represents 57.24% of the lodestar for all worked
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performed on the case. Accordingly, as to the portion of the work attributable to non-
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coupon relief – in this instance, injunctive relief and settlement administration fees – class
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counsel is awarded $938,026.22. After the redemption value of the coupons is known,
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however, and the percentages of the settlement attributable to the coupon and non-
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coupon relief can be calculated with precision rather than by estimate, an adjustment to
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United States District Court
Northern District of California
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such award may be necessary.
5. In addition to the above award of fees, the Court finds the expenses incurred by
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class counsel in bringing the instant action are reasonable, and, accordingly, class
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counsel is awarded expenses in the amount of $65,603.05.
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6. The Court again finds each class representative, specifically, McKinney-
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Drobnis, Piccola, and Berlese, is entitled to an incentive award in the amount of $5,000,
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which amount is fair and reasonable and in recognition of his/her efforts in prosecuting
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the action and pursuing the settlement. Accordingly, each class representative is
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awarded $5,000.
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7. Payment of the above attorney's fees award, expenses award, and incentive
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awards shall be pursuant to the terms of the settlement agreement, and all parties to the
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settlement agreement, as well as the settlement administrator, are directed to carry out
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their respective obligations thereunder.
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8. The Court retains jurisdiction over the above-titled action to assure compliance
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with the terms of the settlement agreement and to consider any additional request for an
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award of attorney's fees following the end of the coupon redemption period.
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9. Class counsel shall serve, no later than seven days from the date of this order,
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a copy of this order on all named parties and objectors, other than those who receive
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notice through the Court's electronic filing system. Class counsel shall also serve, no
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later than seven days from the date of this order, a copy of this order on the settlement
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administrator, which, within five days of receipt thereof, shall post a copy of this order on
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the settlement website.
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IT IS SO ORDERED.
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Dated: May 24, 2022
MAXINE M. CHESNEY
United States District Judge
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United States District Court
Northern District of California
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