Vazquez v. Kraft Heinz Foods Company et al

Filing 107

ORDER Granting Preliminary Approval of Class Action Settlement. (ECF No. 105 ) The Final Approval Hearing is set for 12/13/2019 11:00 AM in Courtroom 14B before Judge William Q. Hayes. Signed by Judge William Q. Hayes on 8/2/2019. (tcf)

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UNITED STATES DISTRICT COURT

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SOUTHERN DISTRICT OF CALIFORNIA

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ENRIQUE VAZQUEZ, SERGIO ALFONSO
LOPEZ, and MARIA VIVEROS, individually
and on behalf of themselves and others
similarly situated,

Lead Case No. 16-CV-02749-WQH-AGS
(Consolidated w/
Case No. 17-cv-00077-WQH-BLM)

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CLASS ACTION

Plaintiffs,
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v.

ORDER GRANTING PRELIMINARY
APPROVAL OF CLASS ACTION
SETTLEMENT

KRAFT HEINZ FOODS COMPANY, a
Pennsylvania Corporation, and DOES 1
through 100, inclusive,

Filed:
Certified:

Defendants.

September 8, 2016
October 9, 2018

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Order Granting Preliminary Approval of Class
Action Settlement

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Case No. 16-CV-02749-WQH-AGS

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The Court, having fully reviewed the Motion for Order Granting Preliminary

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Approval of Class Action Settlement, the supporting Points and Authorities,

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Declarations of Class Counsel Paul K. Haines, Michael D. Singer, and Sahag

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Majarian, II, the Stipulation of Class Action Settlement (“Settlement Agreement”),

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and the proposed Notice of Class Action Settlement, and in recognition of the Court’s

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duty to make a preliminary determination as to the reasonableness of any proposed

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class action settlement and, if preliminarily determined to be reasonable, to ensure

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proper notice is provided to Class Members in accordance with due process

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requirements, and to conduct a Final Approval hearing as to the good faith, fairness,

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adequacy and reasonableness of any proposed settlement, HEREBY MAKES THE

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FOLLOWING DETERMINATIONS AND ORDERS:

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1.

The Court now finds, on a preliminary basis, that the Settlement

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Agreement attached to the Declaration of Paul K. Haines as Exhibit “A”,

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incorporated by reference in full and made a part of this Order of preliminary

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approval, appears to be within the range of reasonableness of a settlement which

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could ultimately be given final approval by this Court.

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Defendant Kraft Heinz Foods Company has agreed to pay the Gross Settlement

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Amount of at least $3,000,000 in full satisfaction of the claims as more specifically

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described in the Settlement Agreement.

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2.

The Court notes that

The Court concludes on a preliminary basis that: (a) the non-

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reversionary Gross Settlement Amount is fair and reasonable to Class Members when

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balanced against the probable outcome of further litigation relating to class

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certification, liability and damages issues and potential appeals; (b) significant

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investigation, research, discovery, and motion practice have been conducted such that

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counsel for the Parties at this time are able to reasonably evaluate their respective

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positions; (c) settlement at this time will avoid substantial costs, delay, and risks that

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would be presented by the further prosecution of the litigation; and (d) the proposed

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Settlement has been reached as the result of intensive, serious, and non-collusive
Order Granting Preliminary Approval of Class
Action Settlement

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Case No. 16-CV-02749-WQH-AGS

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arms’-length negotiations between the Parties facilitated by an experienced wage and

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hour class action mediator.

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3.

Accordingly, good cause appearing, the Motion for Order Granting

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Preliminary Approval of Class Action Settlement is hereby GRANTED. Class

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Members shall be defined as set forth in the Notice of Motion (i.e., Classes 1a, 1c, 2a,

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2c, 4 and 5), all of which were certified by this Court over a contested Motion for

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Class Certification, in addition to all non-exempt employees who worked for

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Defendant during the Class Period in the State of California as conditional Class

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Members pursuant to the proposed Settlement Agreement (collectively referred to

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hereinafter as “Class Members”).
4.

The Court finds that the proposed Notice of Class Action Settlement

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attached to the Settlement Agreement as Exhibit “1” fairly and adequately advises

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Class Members of (a) the pendency of the Class Action Settlement, (b) the

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certification of the Classes; (c) preliminary Court approval of the proposed

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Settlement; (d) the date of the Final Approval Hearing; (e) the terms of the proposed

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Settlement and the benefits available to Class Members under the Settlement; (f) their

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right to receive their proportionate share of the Settlement without the need to return

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a claim form; (g) their right to request exclusion, and the procedures and deadline for

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doing so; (h) their right to object to the Settlement, and the procedure and deadline

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for doing so; and (i) their right to file documentation in support of or in opposition to

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the Settlement, and to appear in connection with, said hearing. Accordingly, good

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cause appearing, the Court hereby APPROVES the Notice of Class Action

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Settlement.

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5.

The Court finds that the mailing to the last known address of all Class

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Members, as specifically described within the Settlement Agreement, with measures

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taken for verification of an address and skip tracing of bad addresses, constitutes an

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effective method of notifying Class Members of their rights with respect to the Class

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Action and Settlement.
Order Granting Preliminary
Approval of Class Action Settlement

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Case No. 16-CV-02749-WQH-AGS

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6.

Accordingly, it is hereby ORDERED, that
A.

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CPT Group, Inc. (“CPT”) be appointed the Administrator to

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administer the Settlement of this matter as more specifically set forth in the

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Agreement;

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B.

The law firms of Haines Law Group, APC, Cohelan Khoury &

Singer and the Law Office of Sahag Majarian II be confirmed as Class Counsel;
C.

Plaintiffs

Enrique Vazquez, Sergio Alfonso Lopez, Maria

Viveros, and Xochitl Lozano are appointed as the Class Representatives;
D.

No later than 15 calendar days (or, if that date falls on a weekend

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or holiday, the next business day) after the date the Court enters an order granting

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preliminary approval of the Settlement, Defendant shall provide to the Administrator,

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for each Class Member, the following information drawn from its records: (1) full

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name; (2) most recently known mailing address; (3) social security number; (4)

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telephone number; (5) email address (to the extent available); (6) the start and end

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dates of employment as a Class Member; (7) location of employment, and the number

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of Compensable Workweeks worked during the Class Period (“Class Data”);

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E.

As soon as practicable after receiving the Class Data, but no later

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than ten (10) business days after its receipt of the Class Data, the Administrator shall

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mail in both English and Spanish, to Class Members by United States First Class

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Mail: (1) the Notice of Class Action Settlement (“Notice”); (2) a Change of Address

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form (Exhibit 2 to the Settlement), and (3) a pre-printed return envelope addressed to

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the Settlement Administrator (collectively, the “Notice Packet”). The Administrator

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shall take those measures specified and on the conditions set forth in the Agreement

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for updating an address subsequent to the first mailing of a Notice Packet;

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F.

On or before 60 calendar days from the date the Administrator

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first mails the Notice Packet to Class Members (or, if the 60th day falls on a Sunday

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or holiday, the next business day that is not a Sunday or holiday) (the “Response

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Deadline”), Class Members who wish to exclude themselves from the Settlement
Order Granting Preliminary
Approval of Class Action Settlement

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Case No. 16-CV-02749-WQH-AGS

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must postmark and return to the Administrator a request for exclusion, as set forth in

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the Agreement and the Notice;
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On or before the Response Deadline, Class Members who wish

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to dispute the information upon which their Settlement Payment will be calculated

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must postmark and return to the Administrator an explanation in writing describing

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why he or she believes the information is wrong, along with any supporting

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information and/or documentation, as set forth in the Agreement and the Notice;
H.

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Class Members who wish to object to the Settlement must

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postmark and return to the Administrator a written Objection on or before the

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Response Deadline, as set forth in the Agreement and the Notice. The written

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objection should state with particularity the basis on which they are asserted; and
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Class Members, or their representatives, who have submitted

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valid and timely written objections may appear at the Final Approval Hearing and

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request of the Court permission to speak at the hearing.

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7.

IT IS ORDERED that Defendant shall provide notice to all appropriate

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governmental entities in compliance with 28 U.S. Code § 1715 et seq., (including

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California or any other state where Class Members may reside) and submit a

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statement of compliance with the Court in a timely manner to prevent delay of the

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Effective Date.

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8.

IT IS ORDERED that the Final Approval Hearing shall be held before

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the undersigned at 11:00 a.m. on December 13, 2019, in the above-entitled Court, in

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the United States District Court for the Southern District of California, Courtroom

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14B located at 333 West Broadway, San Diego, California, 92101 to consider the

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fairness, adequacy and reasonableness of the proposed Settlement preliminarily

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approved by this Order, and to consider the application of Class Counsel for an award

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of reasonable attorneys’ fees and litigation expenses, Class Representatives’ service

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payments, and for the Administration expenses incurred. All briefs and materials in

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support of an Order Granting Final Approval of the Class Action Settlement and the
Order Granting Preliminary
Approval of Class Action Settlement

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Case No. 16-CV-02749-WQH-AGS

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Class Representatives’ Service Payment, payment to California Labor Workforce

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and Development Agency, Administration expenses, and attorneys’ fees and

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litigation costs shall be filed with this Court at least twenty-eight (28) calendar days

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before the Final Approval Hearing.

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9.

IT IS ORDERED that if for any reason the Court does not execute and

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file an Order Granting Final Approval, or if the Effective Date, as defined in the

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Agreement, does not occur for any reason whatsoever, the Agreement and the

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proposed Settlement that is the subject of this Order, and all evidence and

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proceedings had in connection therewith, shall be restored without prejudice to the

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status quo ante as more specifically set forth in the Agreement.
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IT IS ORDERED that pending further order of this Court, all

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proceedings in this matter, except those contemplated herein and in the Agreement

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are hereby stayed.

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The Court expressly reserves the right to adjourn or to continue the Final

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Approval Hearing from time to time without further notice to Class Members, except

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that notice of a continuance shall be provided to Class Members who may submit

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objections.

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IT IS SO ORDERED.

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Dated: August 2, 2019

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Order Granting Preliminary
Approval of Class Action Settlement

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Case No. 16-CV-02749-WQH-AGS