Douglas v. Arcadia Health Services, Inc.

Filing 43

ORDER by Judge ARMSTRONG granting 33 Motion for Attorney Fees; granting 34 Motion ; granting 36 Motion for Settlement (lrc, COURT STAFF) (Filed on 4/17/2012)

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Alan Harris (SBN 146079)
Abigail Treanor (SBN 228610)
HARRIS & RUBLE
6424 Santa Monica Boulevard
Los Angeles, California 90038
Telephone: [phone]
Facsimile: 323.962.3004
[e-mail]
[e-mail]
David S. Harris (SBN 215224)
NORTH BAY LAW GROUP
116 E. Blithedale Avenue, Suite 2
Mill Valley, CA 94941
Telephone: [phone]
Facsimile: 415.388.8770
[e-mail]
Attorneys for Plaintiff
Ruth L. Douglas

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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RUTH L. DOUGLAS, on behalf of
herself and all other similarly situated,

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v.

Plaintiffs,

ARCADIA HEALTH SERVICES, INC.
and DOE 1 through and including DOE
100,

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Defendants.
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Case No: CV-11-03552 SBA
[PROPOSED] ORDER,
JUDGMENT, AND DECREE
GRANTING FINAL APPROVAL
OF CLASS-ACTION
SETTLEMENT AND AWARD OF
ATTORNEYS’ FEES, COSTS
AND ENHANCEMENT AWARD
Assigned to the Honorable Saundra
Brown Armstrong , Oakland
Courthouse, Ctrm 1, 4th Fl, 1301
Clay Street, Oakland, CA 94612

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Date: April 17, 2012
Time: 1:00 p.m.
Court: Courtroom 1, 4th Floor

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Complaint filed June 15, 2011
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[PROPOSED] ORDER

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This matter having come before the Court for hearing on April 17, 2012, pursuant

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to the Order Granting Plaintiff’s Renewed Motion for Preliminary Approval of Class

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Action Settlement (“Preliminary Approval Order”) entered January 17, 2012, on

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Plaintiff’s Motion for Final Approval of Class-Action Settlement and Plaintiff’s Motion

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for Award of Attorneys’ Fees, Reimbursement of Costs and Payment of Enhancement

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Award, and due and adequate notice having been given to the Class as defined below as

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required by the Preliminary Approval Order, and the Court having considered all papers

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filed and proceedings had herein and otherwise being fully informed, and good cause

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appearing therefore, it is hereby found and Ordered:
FINDINGS

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A.

All terms used herein shall have the same meaning as defined in the

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Settlement Agreement and General Release entered into by and between Plaintiff Ruth L.

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Douglas and Defendant Arcadia Health Services, Inc. (“Settlement”) attached as Exhibit

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1 to the Declaration of Alan Harris filed on December 23, 2011 (Docket No. 29).

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B.

This Court has jurisdiction over the subject matter of each of the claims

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asserted in the Complaint in this action, and has personal jurisdiction over the parties to

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this action, including the members of the Class, and subject matter jurisdiction to approve

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the Settlement.

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C.

Notice to the Class has been completed in conformity with the Preliminary

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Approval Order. The class notice provided a clear and full explanation of the settlement,

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the settlement process, and the rights of the Class members, including a description of the

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Class and each Class member’s minimum settlement payment. The class notice further

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informed Class members that Class Counsel would be seeking an award of attorneys’

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fees and costs from the settlement fund. The notice provided a neutral, informative, and

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understandable description of the settlement, and the rights of the Class members under

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the settlement, and described the proposed settlement with enough specificity to enable

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Class members to make an informed decision regarding whether to accept and participate

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in the settlement.
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[PROPOSED] ORDER

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D.

Notice to the Class members, including both (1) the mailing of the Class

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Notice and Claim Forms as directed by the Court, and (2) the establishment of a toll-free

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telephone number by the Claims Administrator, has been completed in conformity with

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this Court’s Preliminary Approval Order. The notice provided the “best practicable”

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notice of the settlement, constitutes valid, due, and sufficient notice, and meets the

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requirements for notice of a class-action settlement. The Court bases this finding, in part,

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on the Claims Administrator’s and the parties’ counsel’s extensive efforts not only in

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initially mailing Class Notice and Claim Forms to all Class members, but in re-mailing

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undelivered Class Notices and Claim Forms to Class members, utilizing a third-party

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locator service to update Class members’ addresses, and receiving and responding to

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telephone calls from inquiring Class members. Accordingly, this Court determines that

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all members of the Class, who did not timely submit a request for exclusion, are bound by

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this Judgment, Final Order, and Decree.

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G.

There were no objections to the Settlement.

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H.

The Settlement is fair, adequate, and reasonable, is in the best interests of the

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Settlement Class as a whole, and represents the best possible outcome in light of the

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defenses raised. In making the determination that the settlement is fair, reasonable and

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adequate and should be approved, the Court has considered (i) the strengths and

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weaknesses in Plaintiff’s case, (ii) the risks, expense, complexity, and likely duration of

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further litigation, (iii) the risks to Plaintiff of establishing and maintaining class-action

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status, (iv) the monetary amount of the settlement, including the amounts of the

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individual payments available to Class members, (v) the extent of discovery that has been

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conducted by the parties, and (vi) the views of the parties’ respective counsel. The

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settlement is the product of arms-length, serious, informed, non-collusive, and non-

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overreaching negotiations.

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I.

For purposes of this Order, Judgment, and Decree, and consistent with the

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Settlement, the term “Class,” which is hereby certified for settlement purposes pursuant

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to Federal Rule of Civil Procedure 23(a) and 23(b)(3), means the following Class: All
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[PROPOSED] ORDER

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former and current AHS Hourly Employees from June 15, 2007, to the date of entry of

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preliminary approval of the Settlement [January 17, 2012] (“Class” or “Settlement

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Class”).

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J.

Counsel for Plaintiff seek an award of attorneys’ fees under the common-

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fund theory, which allows a litigant who recovers a common fund for the benefit of

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others to recover a reasonable attorneys’ fee from the fund as a whole Boeing Co. v. Van

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Gemert, 444 U.S. 472, 478 (1980).
ORDER

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GOOD CAUSE APPEARING THEREFORE, IT IS HEREBY ORDERED,
ADJUDGED, AND DECREED that:
1.

This Court hereby grants final approval of the Settlement, which is expressly

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incorporated by this reference and which shall have the full force and effect of an order of

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this Court, and hereby directs that the Settlement be consummated in accordance with its

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terms and conditions.

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2.

The Class as defined above is certified pursuant to Federal Rule of Civil

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Procedure 23.

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3.

The Court hereby approves the Settlement, including the individual

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settlement payments to be made to the Class members who filed timely claims. The

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Court finds that the Settlement is, in all respects, fair, reasonable, and adequate to the

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settling Class Members.

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4. In making the determination that the Settlement is fair, reasonable, and

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adequate, in addition to the factors set forth above, this Court notes that not a single

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objection was filed to the Settlement and that only five individuals elected to exclude

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themselves. These additional factors lead the Court to conclude that the Settlement is

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fair, reasonable, adequate, and supported by the Class.

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5.

The Settlement and this Judgment release and absolutely and forever

discharge Defendant Arcadia Health Services as follows:

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[PROPOSED] ORDER

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Class Members who do not exercise their right to exclude themselves from

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the settlement have released the following claims (whether or not he or she

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has returned a valid Claim Form) against Defendant, Arcadia Services Inc.,

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RKDA, Inc. Arcadia Resources, Inc. and each of its officers, directors,

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employees, agents, direct and indirect subsidiaries or affiliated corporations,

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organizations, representatives, insurers, predecessors, successors, assigns,

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clients (and their respective officers directors, employees, agents, managers

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and fiduciaries) and counsel (collectively referred to as the “Released

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Parties”) from any and all claims, debts, liabilities, demands, obligations,

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guarantees, costs, expenses, attorneys' fees, penalties, damages, restitution,

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injunctive relief, or a remedy of any other type which are based on, arise out

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of, or are related to the causes of action of the Lawsuit, including but not

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limited to, claims made pursuant to the California Labor Code for failure to

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pay overtime compensation, failure to provide adequate meal periods and/or

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rest periods, failure to provide accurate wage statements, and failure to pay

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final wages in a timely fashion; claims under California Business and

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Professions Code section 17200 et seq.; and claims for civil penalties

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pursuant to the California Labor Code and the Private Attorneys General Act

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of 2004 through the Effective Date of the Agreement. This release covers all

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claims for interest, attorneys’ fees and costs related to the Lawsuit. Class

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Members who have not timely returned valid Claims Form shall not share in

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the distribution of any part of the Settlement amount, but nevertheless shall

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be bound by the Release provisions of this Agreement (unless they have

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validly opted-out). As they relate to these Released Claims, Class Members

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waive all rights under California Civil Code Section 1542, or any similar

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statute of another jurisdiction, and understand that they are releasing known

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and unknown claims within the scope of this Release. Section 1542 states:

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[PROPOSED] ORDER

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A general release does not extend to claims which the creditor does

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not know about or does not suspect to exist in his or her favor at the

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time of executing the release, which if known by him or her must have

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materially affected his or her settlement with the debtor.

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(All defined terms shall have the same meaning as in the Settlement.)

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5.

The Court hereby enters this Order as a Judgment, and hereby decrees that,

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upon entry, it shall be deemed as a final judgment with respect to all claims by all

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members of the Class against Defendant Arcadia Health Services, Inc.

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6.

All members of the Class who have not filed a timely and valid request for

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exclusion are barred and permanently enjoined from prosecuting claims that are settled

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and/or released pursuant to and/or under the Settlement.

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7.

Ruth L. Douglas is hereby approved as representative of the Class and is

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approved to receive an enhancement award in the amount of $5,000 ($1,000 of said

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amount shall be paid from the settlement fund and the remaining $4,000 shall be paid by

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Class Counsel).

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8.

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Alan Harris and Abigail Treanor of Harris & Ruble and David S. Harris of

the North Bay Law Group are hereby approved as Class Counsel.
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The Court determines that Class Counsel is entitled to an award of attorneys’

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fees in the amount of $155,750 and an award of costs and expenses in the amount of

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$2,461.26. The Court finds that the fee-and-cost award reflects the actual efforts

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expended by counsel in prosecuting this class action, and are supported by the lodestar

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crosscheck. Upon entry of this Order, the Court hereby authorizes the Claims

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Administrator to make payments directly to Class Counsel of the award of attorneys’ fees

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and costs in accordance with the terms of the Settlement.

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10.

The Court hereby dismisses this action against Arcadia Health Services, Inc.

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on the merits and with prejudice and without costs other than as provided in the

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Settlement.

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[PROPOSED] ORDER

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All Class members who filed timely and valid Claim Forms shall participate

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and receive individual settlement payments in accordance with the terms of the

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Settlement.

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12.

The Claims Administrator is hereby ordered to make the payments required

under the Settlement in accordance with its terms and conditions.
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Without affecting the finality of this Judgment, this Court shall retain

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exclusive and continuing jurisdiction over this action and the parties, including all

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members of the Class, for purposes of supervising, administering, implementing,

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enforcing, construing, and interpreting the Settlement, the claims process thereunder, and

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this Judgment. Any disputes concerning this Judgment may be referred to a magistrate

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judge of this Court for a report and recommendation.

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IT IS SO ORDERED.

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Dated: 4/17/12

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The Honorable Saundra Brown Armstrong
United States DistrictJudge

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[PROPOSED] ORDER