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Vikram v. First Student Management, LLC
4:17-cv-04656
N.D. Cal.
Sep 3, 2019
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Background

  • Plaintiff Bhanu Vikram, a San Francisco bus driver, brought a putative class action against First Student Management alleging (1) unpaid pre-shift time at the bus yard and (2) failure to include non-discretionary "lift/comm" incentive pay in the regular rate for overtime calculation.
  • The parties mediated, agreed to settle only the lift/comm overtime-related claims for drivers at the San Francisco location (class period July 6, 2013–June 15, 2018), and proposed a Gross Settlement Amount of $435,000 (including $10,000 PAGA penalties).
  • Net Settlement Amount after fees, costs, PAGA allocation, and administration was $290,087.50 to be allocated pro rata by workweeks (with a 2.0 multiplier for former employees for waiting-time exposure).
  • The settlement releases only claims related to failure to pay overtime on lift pay; other claims (e.g., pre-shift uncompensated time) were dismissed without prejudice.
  • Court preliminarily approved notice; 335 class members were mailed notice, no opt-outs, three procedural objections regarding workweek calculations were resolved, and no governmental objections were filed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Final approval: is the settlement fair, reasonable, adequate? Settlement reasonably compensates class for lift/comm overtime risk and was result of arms-length mediation. Settlement reflects resolution of disputed liability and class certification risks. Granted: Court found Churchill factors favor approval; no Bluetooth collusion signs.
Attorney's fees: is 25% of common fund reasonable? Requests 25% ($108,750) as benchmark percentage; litigation was risky and required expert work. No opposition. Granted: 25% benchmark reasonable; lodestar cross-check produced a sub-multiplier supporting the award.
Costs: are requested litigation costs reasonable? Seeks $10,000 (actual costs $12,966.25). No opposition. Granted: Court awards $10,000 as reasonable.
Service award: is $10,000 for named plaintiff appropriate? Asks $10,000 for ~100 hours and release execution. Defendant did not oppose, but court assesses reasonableness. Denied in part: reduced to $5,000 as more consistent with district practice and plaintiff's involvement.

Key Cases Cited

  • Churchill Village, LLC v. General Electric, 361 F.3d 566 (9th Cir.) (factors for evaluating fairness of class settlements)
  • In re Bluetooth Headset Products Liability Litigation, 654 F.3d 935 (9th Cir.) (heightened scrutiny for potential collusion in fee arrangements)
  • Vizcaino v. Microsoft Corp., 290 F.3d 1043 (9th Cir.) (lodestar cross-check and multiplier guidance)
  • Rodriguez v. West Publishing Corp., 563 F.3d 948 (9th Cir.) (standards and purposes for service/incentive awards)
  • Maldonado v. Epsilon Plastics, Inc., 22 Cal. App. 5th 1308 (Cal. Ct. App.) (wage-statement penalty requires showing of injury)
  • Van Vranken v. Atlantic Richfield Co., 901 F. Supp. 294 (N.D. Cal.) (context for larger incentive awards in extraordinary representative involvement)
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Case Details

Case Name: Vikram v. First Student Management, LLC
Court Name: District Court, N.D. California
Date Published: Sep 3, 2019
Docket Number: 4:17-cv-04656
Court Abbreviation: N.D. Cal.