Hale v. Manna Pro Products, LLC
2:18-cv-00209
E.D. Cal.Jan 15, 2021Background:
- Plaintiff Ashley Hale sued Manna Pro Products alleging violations of California’s UCL and FAL on behalf of a California consumer class.
- The court granted preliminary class certification and preliminary settlement approval on July 6, 2020 and the parties later stipulated to permit notice by publication.
- The court twice deferred final approval because the parties did not (1) explain how unclaimed residual settlement funds would be distributed and (2) justify why the proposed cy pres recipient, Public Justice, would benefit the class.
- The parties proposed that any leftover funds be distributed to Public Justice, a national consumer‑protection nonprofit, but provided no declaration assuring the funds would be used to further the interests of this class.
- The court approved the parties’ notice‑by‑publication plan and amended the notice schedule, but conditionally approved the stipulation: the parties must produce a declaration from Public Justice assuring the funds will advance the rights of the plaintiffs before final approval.
- The court continued the final approval hearing to May 28, 2021 to allow submission of the required declaration.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether notice by publication is appropriate | Parties proposed publication per Exhibit A to reach absent class members | Defendant agreed via stipulation | Court approved the notice‑by‑publication plan and amended the notice schedule |
| Whether cy pres distribution to Public Justice is appropriate | Public Justice advances consumer protection nationwide and thus furthers class interests | Defendant supported Public Justice as the cy pres recipient | Court found insufficient assurance Public Justice would use funds to benefit this class; required a declaration from Public Justice committing to use the funds to advance plaintiffs’ interests before final approval |
Key Cases Cited
- Six Mexican Workers v. Ariz. Citrus Growers, 904 F.2d 1301 (9th Cir. 1990) (establishes cy pres can distribute unclaimed funds only if it reasonably benefits the class)
- Dennis v. Kellogg Co., 697 F.3d 858 (9th Cir. 2012) (cy pres award must be the "next best distribution" and not approved when there is no reasonable certainty class members will benefit)
- Lane v. Facebook, Inc., 696 F.3d 811 (9th Cir. 2012) (cy pres remedy must account for the nature of the lawsuit, statutory objectives, and interests of silent class members)