Alvarado v. Nederend
1:08-cv-01099
| E.D. Cal. | Jan 11, 2011Background
- Plaintiffs are approximately 150 current and former non-exempt dairy workers in California (Tulare/Kern County) alleging wage-and-hour violations by Rex and Sheri Nederend (Northstar Dairy, Woodwood Farms, Freeway Associates).
- SAC asserts unpaid overtime/minimum wages, unpaid wages at termination, missing meal/rest breaks, and improper wage statements.
- Parties entered a Joint Settlement seeking conditional class certification, preliminary approval, appointment of class representatives and counsel, notice, a settlement administrator, and a final approval hearing.
- Settlement covers roughly 150 employees who worked from July 30, 2004 to September 7, 2010, with mediation by Raul Ramirez.
- Gross Settlement Amount is $505,058.60, to be distributed as Settlement Shares after deductions for payroll withholdings, penalties, administrator fees (up to $15,000), and potential Class Representative and Class Counsel fees/expenses; unclaimed funds and uncashed checks are redistributed or donated.
- Release bars Participating Class Members from most claims based on alleged improper compensation under federal, California, or local law; scope limited to those claims, not unrelated claims; notice and administration plan approved
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the class should be conditionally certified under Rule 23(a) and 23(b)(3) for settlement. | Alvarado argues numerosity, commonality, typicality, and adequacy are met. | Nederend opposes only to the extent necessary but agrees the class should be certified for settlement. | Conditionally certified under Rule 23(a) and 23(b)(3) for settlement. |
| Whether the proposed settlement is fair, adequate, and reasonable. | Settlement provides meaningful recovery given risks and litigation costs. | Settlement is justified by risks, potential defenses, and delay of litigation. | Preliminary approval warranted; the settlement falls within the range of possible approval. |
| Whether the notice plan and administration are adequate. | Notice will be delivered in English and Spanish with direct mail, reminders, and aid from an administrator. | Not opposed to notice plan; administrator chosen to manage claims and distributions. | Notice plan and chosen administrator approved; best notice practicable. |
| Scope and effect of the release and potential for collusion. | Release tracks allegations and is limited to named claims; no collusion evident. | No objection to release scope beyond the claims in dispute. | Release deemed appropriate; no evidence of collusion. |
Key Cases Cited
- Churchill Village, LLC v. General Electric, 361 F.3d 566 (9th Cir. 2004) (adequate class notice and settlement terms analysis for Rule 23(e))
- Hanlon v. Chrysler Corp., 150 F.3d 1011 (9th Cir. 1998) (test for determining whether a settlement is fair, reasonable, and adequate in class actions)
- Brinker Restaurant Corp. v. Superior Court (Hohnbaum), 165 Cal. App. 4th 25 (Cal. App. 4th Dist. 2008) (California meal/rest break obligations and class action context)
