Martin v. Legacy Supply Chain Services II, Inc. et al

Filing 27

ORDER: The Court Grants 25 the request for Preliminary Approval of the Class Action Settlement. Final Approval Hearing set for 7/13/2018 at 10:00 a.m. in Courtroom 14B before Judge William Q. Hayes. Signed by Judge William Q. Hayes on 02/12/2018. (ajs)

1
2
3
4
5

UNITED STATES DISTRICT COURT

6

SOUTHERN DISTRICT OF CALIFORNIA

7
8
9
10

Case No. 3:16-cv-02471-WQH-BLM

RICARDO MARTIN, an
individual; and NICK MORGAN,
an individual; on behalf of
themselves and all others
similarly situated,

CLASS ACTION
ORDER

11
12

Plaintiffs,
v.

13
14
15
16

LEGACY SUPPLY CHAIN
SERVICES II, INC., an Indiana
Corporation; PrimePath, LLC, a
Florida Corporation; and DOES 1
through 100, inclusive,

17

Defendants.

18
19

HAYES, Judge:

20

Plaintiffs Ricardo Martin and Nick Morgan (“Plaintiffs”), on behalf of themselves

21

and the proposed Settlement Class, have filed an unopposed motion asking the Court to:

22

(a) grant preliminary approval of the Stipulation and Agreement of Compromise and

23

Class Settlement (“Settlement” or “Settlement Agreement”) entered into by and between

24

Plaintiffs and Defendants Legacy Supply Chain Services II, Inc. and PrimePath, LLC

25

(“Defendants”); (b) requesting the Court set a deadline for Plaintiffs to file their Motion

26

for Approval of Class Counsel’s Attorneys’ Fees and Costs, and Class Representative

27

Enhancement Payments; and (c) requesting the Court set a final approval hearing to

28

determine the fairness of the Settlement.
1
16-CV-2471-WQH-BLM

1
2
3
4
5
6
7
8
9
10

The Court has considered the Parties’ Settlement Agreement, along with Plaintiffs’
unopposed Motion for Preliminary Approval of the Settlement Agreement and the
Memorandum of Points and Authorities, Declaration of Christopher A. Olsen,
Declaration of Ricardo Martin, Declaration of Nick Morgan, and other documents filed
in support thereof, and finds good cause for issuing an Order preliminarily approving the
Parties’ Settlement.
NOW THEREFORE, IT IS HEREBY ORDERED:
1. The Court GRANTS the request for Preliminary Approval of the Class Action
Settlement. All defined terms contained herein shall have the same meanings as set forth
in the Settlement.

11

2. Pursuant to Rule 23(e) of the Federal Rules of Civil Procedure, the Court GRANTS

12

the Parties’ request for certification of the following Rule 23 Settlement Class for the sole

13

and limited purpose of implementing the terms of the Settlement Agreement, subject to

14

this Court’s final approval:

15

All persons, or each of them, currently or formerly employed by

16

Defendants, or Defendants’ predecessors, in the State of California as

17

hourly, non-exempt employees during the time frame of October 3, 2012

18

through the date the Court grants preliminary approval of this Settlement

19

Agreement.

20

3. The Court recognizes that certification under this Order is for settlement purposes

21

only, and shall not constitute or be construed as an admission by Defendants that this

22

action is appropriate for class treatment for litigation purposes. Entry of this Order is

23

without prejudice to the rights of Defendants to oppose certification of a class in this

24

action should the proposed settlement not be granted final approval.

25

4. The Court appoints and designates: (a) Plaintiffs Ricardo Martin and Nick Morgan

26

as the Class Representatives, and (b) the firm of Olsen Law Offices, APC as Class

27

Counsel for the Class. Class Counsel is authorized to act on behalf of the Class with

28

respect to all acts or consents required by, or which may be given, pursuant to the
2
16-CV-2471-WQH-BLM

1
2
3
4
5
6
7
8

Settlement, and such other acts necessary to finalize the Settlement Agreement and its
terms. Any Settlement Class Member may opt out of the Settlement and enter an
appearance through his or his own counsel at such Class Member’s own expense. Any
Settlement Class Member who does not opt out will be represented by Class Counsel.
5. The Court hereby approves the terms provided for in the Settlement, finding them
to be fair, adequate, and reasonable and in the best interests of the Settlement Class
Members.
6. The Court hereby preliminarily approves the Settlement and the Maximum

9

Settlement Amount of $625,000.00, with the Net Settlement Amount being calculated by

10

subtracting the following from the Maximum Settlement Amount: (1) Class Counsel’s

11

attorneys’ fees (not to exceed 33.33% of the Maximum Settlement Amount or

12

$206,250.00); (2) Class Counsel’s Costs (not to exceed $10,000.00); (3) Class

13

Representative Enhancement Payments to be paid to Representatives Ricardo Martin and

14

Nick Morgan (not to exceed $5,000 per class representative); (4) $10,000.00 to be

15

allocated to claimed PAGA penalties with 75% (or $7,500.00) to be paid to the California

16

LWDA and with 25% (or $2,500.00) going into the Net Settlement Amount; and (5) the

17

Claims Administration Costs to the Claims Administrator, Phoenix Settlement

18

Administrators, Inc., not to exceed $20,000.00. The Net Settlement Amount remaining

19

for paying Individual Settlement Payments to the Participating Class Members is

20

anticipated to be approximately $371,250.00. The Court further preliminarily approves

21

the formulas provided in the Settlement for calculating Individual Settlement Payments,

22

and the Opt-Out Deadline of May 11, 2018. Additionally, Defendants’ employer share

23

of payroll taxes (e.g. UI, ETT, Social Security and Medicare taxes) on Individual

24

Settlement Payments paid to the Participating Class Members will be deducted from the

25

Net Settlement Amount.

26

7. The Court finds on a preliminary basis that the Settlement, including the Class

27

Representative Enhancement Payment, Class Counsel Fees and Costs, the Claims

28

Administration Costs and the proposed allocation of Individual Settlement Payments to
3
16-CV-2471-WQH-BLM

1
2
3
4
5
6
7
8

Participating Class Members, appears to be within the range of reasonableness of a
settlement that could ultimately be given final approval by this Court. It appears to the
Court on a preliminary basis that the Settlement is fair, adequate and reasonable as to all
potential Settlement Class Members when balanced against the probable outcome of
further litigation relating to certification, liability and damages issues. It also appears that
extensive investigation, research and Court proceedings have been conducted so that
counsels for the Parties have been able to reasonably evaluate their respective positions.
It appears to the Court that settlement at this time will avoid substantial additional costs

9

by all Parties, as well as avoid the delay and risks that would be presented by the further

10

prosecution of this Action. It also appears that settlement has been reached because of

11

intensive, serious, and non-collusive arms-length negotiations, including a full-day

12

mediation with a third-party neutral.

13

8. A final approval hearing shall be held before this Court on July 13, 2018 in

14

Courtroom 14B of the United States District Court, Southern District of California, at

15

10:00 a.m. to determine all necessary matters concerning the Settlement, including

16

whether the proposed Settlement of the Action on the terms and conditions provided for

17

in the Settlement are fair, adequate and reasonable and should be finally approved by the

18

Court and whether a Judgment should be entered herein. At that time, a hearing on Class

19

Counsel’s Motion for Attorneys’ Fees and Costs and the Class Representative’s

20

Enhancement Payment shall also be held.

21

9. The Court hereby approves, as to form and content, the Notice of Class Action

22

Settlement (“Notice Packet”) to be sent to Settlement Class Members, which is attached

23

as Exhibits A to the Settlement Agreement. The Court finds that distribution of the Notice

24

Packets to the Settlement Class Members substantially in the manner and form set forth

25

in the Settlement is the best notice practicable under the circumstances and meets the

26

requirements of due process, and shall constitute due and sufficient notice to all parties

27

entitled thereto. The documents to be sent to all Settlement Class Members in the Notice

28

Packet are deemed sufficient to inform Settlement Class Members of the terms of the
4
16-CV-2471-WQH-BLM

1
2
3
4
5
6
7
8
9
10

Settlement, their rights under the Settlement, their rights to object to or comment on the
settlement, their right to receive an Individual Settlement Payment without having to take
any action, their right to exclude themselves and not participate in the Settlement, and the
processes for doing so, and the date and location of the Final Approval Hearing, and the
Notice Packet documents are therefore approved.
10. The Court appoints and designates Phoenix Settlement Administrators as the thirdparty Claims Administrator. The Court hereby directs the Claims Administrator to
provide the approved Notice Packet documents to Settlement Class Members and
administer the Settlement in accordance with the procedures set forth in the Settlement
herein, including in conformance with the schedule set forth below.

11

11. Any Settlement Class Member may choose to opt out of and be excluded from the

12

Settlement as provided in the Settlement and Notice of Class Action Settlement and by

13

following the instructions for requesting exclusion. Any person who timely and properly

14

excludes themselves from the Settlement will not be bound by it or have any right to

15

object, appeal or comment thereon. Any Request for Exclusion must be signed by each

16

such Settlement Class Member and comply with the requirements for exclusion set forth

17

in the Settlement. Settlement Class Members who have not timely submitted a Requested

18

for Exclusion shall be bound by all determinations of the Court, the Settlement and the

19

Judgment. If both an opt-out and an objection are received from the same Settlement Class

20

Member, the Class Member will be deemed to have opted out.

21

12. Pursuant to Federal Rule of Civil Procedure 23(e) (5), members of the Settlement

22

Class may object to the terms of the settlement. Settlement Class Members who object to

23

the proposed Settlement may appear and present such objections at the Final Approval

24

Hearing in person or by counsel, provided that any objecting Settlement Class Member

25

submit a written statement containing the basis of that person’s objections, together with

26

a notice of the intention to appear, if appropriate, which must be sent to the Claims

27

Administrator and postmarked no later than forty-five (45) calendar days from the date

28

on which the Notices are first sent out by the Claims Administrator. No person shall be
5
16-CV-2471-WQH-BLM

1
2
3
4
5
6
7
8

heard at the Final Approval Hearing, and no briefs or papers shall be received or
considered, unless the foregoing documents have been filed and served as provided in this
Order, except as this Court may permit for good cause shown.
13. The motion for final approval of the Settlement and Awarding Administration
Costs shall be filed by May 25, 2018. Class Counsel shall also file by May 25, 2018 the
Final Approval Hearing its Motion for Attorneys’ Fees and Costs and Class
Representative Enhancement Payment, to be heard concurrently with the Final Approval
Hearing.

9

14. Upon Final Approval and completion of the Claims Administration process, all

10

Class Members who have not submitted timely Requests for Exclusion and the Class

11

Representatives will be deemed to have forever released and discharged the Released

12

Claims applicable to them and waived their rights under California Civil Code § 1542 for

13

the applicable Released Claims, as set forth and defined in the preliminarily approved

14

Settlement Agreement.

15

15. The Court reserves the right to change or otherwise continue or advance the date

16

of the Final Approval Hearing and all dates provided for in the Settlement without further

17

notice to the Class, and retains jurisdiction to consider further applications concerning the

18

Stipulation.

19

16. The Court orders the following schedule of dates and administration milestones

20

for the specified actions and further proceedings in this matter as agreed under the terms

21

of the Settlement:

22
23
24
25
26
27

Event

Date

Last day for Defendants to provide Claims Administrator the

March 9, 2018

Class List
Notice-last day for Claims Administrator to mail the Notice

March 23, 2018

Packet to Class Members

28
6
16-CV-2471-WQH-BLM

1
2
3
4
5
6
7
8
9

Last day for Settlement Class to submit a timely signed Request
for Exclusion
Last day for Settlement Class to timely submit Objections

May 11, 2018

Last day to file Motion for Approval of Class Counsel’s

April 27, 2018

Attorneys’ Fees and Costs, and Class Representative
Enhancement Payment
Last day to file Motion for Final Approval of Class Action

12

May 25, 2018

Settlement
July 13, 2018 at
10:00 a.m.

Final Approval Hearing

10
11

May 11, 2018

IT IS SO ORDERED.
Dated: February 12, 2018

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
7
16-CV-2471-WQH-BLM