Turk v. Gale/Triangle, Inc.
2:16-cv-00783
E.D. Cal.Sep 21, 2017Background
- Plaintiff Steve Turk brought a California wage-and-hour class action on behalf of drivers and yard goats against Gale/Triangle, Inc. and Performance Team Freight Systems, alleging missed meal/rest breaks, unpaid wages for rest/nonproductive time, inaccurate wage statements, and unpaid wages at termination, plus a UCL claim; defendants denied liability.
- The settlement class comprises 365 employees who worked in California as drivers or yard goats between April 15, 2010 and April 20, 2016.
- After roughly three years of litigation, extensive discovery, and a full-day arms-length mediation, parties agreed to a $650,000 gross settlement fund with no reversion to defendants.
- Deductions from the gross fund include $195,000 attorneys’ fees, $17,925 costs, $10,000 class representative incentive, $9,499 administration, and $7,500 PAGA allocation, leaving a net settlement of $410,076 to be distributed pro rata by weeks worked (average recovery ≈ $1,100; max ≈ $9,817).
- Notice was provided per the court-approved plan; zero class objections were filed and four class members opted out.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the class should be certified for settlement purposes and the settlement finally approved | Settlement certification appropriate; settlement fair after discovery/mediation | Agreed to settlement; contested underlying claims but not settlement fairness | Court affirmed prior settlement-only certification under Rule 23 and granted final approval as fair, reasonable, and adequate |
| Whether the settlement is the product of collusion or overreaching | Settlement resulted from arms-length mediation and extensive discovery; no collusion | No evidence of collusion; defendants participated in negotiation | Court found no fraud/collusion and gave weight to counsel’s judgment; settlement approved |
| Whether attorneys’ fees ($195,000 / 30% of GSA) are reasonable | Counsel sought 30% of GSA based on results, risks, contingency, and experience; defendants agreed | Defendants agreed to the requested fee | Court approved 30% as fair despite being above 25% benchmark, applying percent-of-recovery and lodestar cross-check; fees reimbursable |
| Whether incentive payment ($10,000) and costs ($17,925) are appropriate | Incentive justified by Turk’s active participation; costs incurred in litigation and below agreed cap | Defendants agreed; no class objections | Court approved $10,000 incentive and $17,925 in costs as fair and reasonable |
Key Cases Cited
- Staton v. Boeing Co., 327 F.3d 938 (9th Cir. 2003) (settlement-before-certification requires court scrutiny of certification and fairness)
- Rodriguez v. West Pub. Corp., 563 F.3d 948 (9th Cir. 2009) (factors for assessing class settlement fairness)
- Molski v. Gleich, 318 F.3d 937 (9th Cir. 2003) (settlement fairness factors)
- Officers for Justice v. Civil Serv. Comm’n of City of S.F., 688 F.2d 615 (9th Cir. 1982) (court should guard against collusion and weigh counsel judgment)
- In re Bluetooth Headset Prods. Liability Litig., 654 F.3d 935 (9th Cir. 2011) (require courts to ensure fee awards are reasonable; consideration of negotiated fees)
- Vizcaino v. Microsoft Corp., 290 F.3d 1043 (9th Cir. 2002) (percentage-of-recovery and lodestar cross-check explained)
- Powers v. Eichen, 229 F.3d 1249 (9th Cir. 2000) (benchmarks for percentage awards and reasonableness factors)
- Six Mexican Workers v. Arizona Citrus Growers, 904 F.2d 1301 (9th Cir. 1990) (percentage-of-fund method for fee awards)
- In re Omnivision Techs., Inc., 559 F. Supp. 2d 1036 (N.D. Cal. 2008) (observing typical common-fund awards exceed 25%)
- In re Activision Sec. Litig., 723 F. Supp. 1373 (N.D. Cal. 1989) (noting common-fund awards often around 30%)
