Boring v. Bed Bath & Beyond of California Limited Liability Company
3:12-cv-05259
N.D. Cal.Nov 21, 2013Background
- Plaintiff Sean Boring, an assistant manager, alleges BB&B of California failed to reimburse employees for business use of personal vehicles and fuel costs under Labor Code 2802 and related statutes.
- Approximately 1,400 current/former store managers, assistant managers, and department managers are proposed as the settlement class.
- Settlement contemplates a $415,000 maximum amount with allocations for fees, costs, administration, service enhancement, and distribution to class members.
- Net per-class-member payout is approximately $239,166.67 to be divided pro rata by weeks worked, capped at ten times each member’s estimated payment.
- Cy pres provision designates the Volunteer Legal Services Program of the Bar Association of San Francisco as the cy pres beneficiary if funds remain after allocations.
- Settlement was reached after six months of discovery and a day-long mediation; preliminary approval is sought pending notice and final fairness determinations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the settlement class should be certified for settlement purposes | Boring seeks certification based on common questions and cohesive class claims | BB&B challenges if common issues predominate and the class is ascertainable | Yes; the Court preliminarily certifies the settlement class |
| Whether Rule 23(a) requirements are satisfied | Plaintiff asserts numerosity, commonality, typicality, and adequacy | Defendant contends some requirements are not met | All four 23(a) elements satisfied |
| Whether Rule 23(b)(3) predominance and superiority are met | Common questions about reimbursement policies predominate | Individual issues could undermine predominance | Predominance and superiority satisfied for a settlement class |
| Appointment of class representative and class counsel | Boring will adequately represent the class; counsel are experienced | No contrary conflicts or deficiencies identified | Plaintiff appointed as class representative; Ackermann & Tilajef, P.C. and Michael Malk, Esq. appointed as Class Counsel |
| Preliminary approval and notice plan sufficiency | Settlement appears fair, reasonable, and not collusive; notices will be properly distributed | No explicit objection in record yet | Preliminary approval granted, subject to amended notice/claim forms and cy pres validation |
Key Cases Cited
- Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (U.S. 2011) (commonality and class-wide questions required for 23(a)(2))
- Amchem Prods. v. Windsor, 521 U.S. 591 (U.S. 1997) (litigation class settlements require careful balancing of interests and fairness)
- Hanlon v. Chrysler Corp., 150 F.3d 1011 (9th Cir. 1998) (adequacy, typicality, and predominance considerations in class actions)
- In re Tableware Antitrust Litig., 484 F. Supp. 2d 1078 (N.D. Cal. 2007) (preliminary approval standards and range of possible approval)
- Dennis v. Kellogg Co., 697 F.3d 858 (9th Cir. 2012) (cy pres and settlement approval principles)
- In re Bluetooth Headset Prods. Liab. Litig., 654 F.3d 935 (9th Cir. 2011) (anti-collusion and review of settlement terms)
- Class Plaintiffs v. City of Seattle, 955 F.2d 1268 (9th Cir. 1992) (strong policy favoring class settlements; preliminary approvals)
