Morgan v. Rohr, Inc.
3:20-cv-00574
S.D. Cal.May 1, 2025Background
- Plaintiffs, former and current unionized, non-exempt, hourly-paid employees of Rohr, Inc. in California, brought a class, collective, and representative action alleging various wage and hour violations under state and federal law.
- There were two overlapping lawsuits: the Morgan Action (filed in 2019 as a class action) and the Harris Action (filed in 2020 under California's PAGA statute for civil penalties). The cases involved similar facts and claims.
- The primary allegations included failure to provide meal/rest periods, overtime and minimum wage violations, inaccurate wage statements, and failure to reimburse necessary employment expenses.
- After extensive litigation, discovery, mediation, failed settlement attempts, and partial class certification, the parties reached a $19.9 million settlement just prior to trial, resolving claims for approximately 1,755 class members.
- The proposed settlement also included payments for PAGA claims, FLSA collective claims, class counsel fees, and class representative incentive awards, subject to court approval.
- The court was tasked with evaluating the settlement for preliminary approval, including class certification for settlement purposes, adequacy, fairness, payment allocation, notice, and administration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Provisional class certification for settlement under Rule 23 | Class satisfies numerosity, commonality, etc. | Disputed but did not contest for settlement | Court finds class certification likely proper |
| Fairness and adequacy of the $19.9M settlement | Amount is fair given risks and expected outcome | Settlement is reasonable given defenses | Settlement is fair, reasonable, and adequate |
| Attorney's fees up to 33⅓% of the settlement | Fee is justified by work and outcomes | Reasonableness to be scrutinized at final approval | |
| Propriety of class/collective notice and administration | Notice plan complies with Rule 23, reaches class | Notice plan approved as best practicable under law |
Key Cases Cited
- Class Plaintiffs v. City of Seattle, 955 F.2d 1268 (9th Cir. 1992) (strong judicial policy favoring class action settlements)
- Staton v. Boeing Co., 327 F.3d 938 (9th Cir. 2003) (court must ensure fairness of class action settlements before certification)
- Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338 (2011) (commonality standard for class actions)
- Amchem Products, Inc. v. Windsor, 521 U.S. 591 (1997) (predominance and superiority for class certification)
- Rodriguez v. W. Publ’g Corp., 563 F.3d 948 (9th Cir. 2009) (arm’s-length settlement negotiations support fairness presumption)
- In re HP Inkjet Printer Litig., 716 F.3d 1173 (9th Cir. 2013) (importance of evaluating attorneys’ fees in class settlements)
- Eisen v. Carlisle & Jacquelin, 417 U.S. 156 (1974) (notice requirements for absent class members)
- Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306 (1950) (standard of reasonableness for notice in class actions)
