Facts
- A.W. was born on May 12, 2020, and placed into emergency shelter care on November 4, 2021, due to dependency issues related to her father T.W.'s behaviors [lines="30-31"].
- T.W. admitted to A.W.'s dependent status on December 16, 2021, and agreed to a temporary custody arrangement at a dispositional hearing [lines="35-39"].
- The appellant struggled with mental health issues, substance abuse, and demonstrated an inability to complete a court-approved case plan [lines="40-55"].
- Despite brief attempts at compliance, T.W. continued to test positive for illegal substances, including cocaine and marijuana, leading to the filing of a dispositional request for permanent custody [lines="63-68"].
- A.W. was previously reunified with her parents for two trial home visits but was removed again after both tested positive for drugs [lines="130-132"].
Issues
- Did the trial court err in concluding that grounds existed for permanent custody of A.W. to the Richland County Children Services Board? [lines="147-157"].
- Was the decision to award permanent custody against the manifest weight of the evidence? [lines="153-158"].
Holdings
- The trial court's finding of grounds for permanent custody was supported by clear and convincing evidence, including T.W.'s ongoing substance abuse and failure to remedy dependency conditions [lines="341-344"].
- The court determined that the trial court's decision to award permanent custody was not against the manifest weight or sufficiency of the evidence, affirming the judgment [lines="358-362"].
OPINION
LUIS MENDOZA, Plaintiff and Respondent, v. WEST COAST QUARTZ CORPORATION, Defendant and Appellant.
A170409 (Alameda County Super. Ct. No. RG18927787)
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA FIRST APPELLATE DISTRICT DIVISION THREE
Filed 12/3/24
NOT TO BE PUBLISHED IN OFFICIAL REPORTS. California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.
FACTUAL AND PROCEDURAL BACKGROUND
WCQ manufactures and distributes silicon parts for the semiconductor industry. It has approximately 300 nonexempt employees.1
In November 2018, Mendoza filed a putative class action lawsuit against WCQ asserting claims under the
A. Class Certification
In November 2022, the trial court granted Mendoza’s motion to certify a class of all nonexempt, hourly employees of WCQ at its three California locations from four years prior to the filing of the original complaint to the date of certification. The court also certified six subclasses: (1) a meal period policy subclass for employees who worked at least one shift of five hours or more through September 28, 2020; (2) a meal break premium subclass of employees who worked at least one shift of more than five hours through September 28, 2020; (3) an on-premises rest break subclass for employees who worked at least one shift of more than 3.5 hours through September 28, 2020; (4) a wage statement meal premium subclass for class members who received at least one meal period premium payment from November 17, 2017 to the date of class certification; (5) a waiting time subclass from November 7, 2015 to the date of certification; and (6) a derivative wage statement subclass from November 17, 2017 to the date of certification.
For the meal period policy subclass, the trial court found that WCQ had a written meal policy stating “ ‘employees must take their first break within 6 hours of their start time.’ ” The court noted that WCQ employees were required to sign a “ ‘time keeping standard’ ” that included this same language, and that the policy remained in effect until September 28, 2020, when it “was changed in response to this lawsuit to state the break should be taken within the fifth hour.” The court rejected WCQ’s contention that the policy “was merely a guideline and that each supervisor set his own meal schedule,” concluding “[t]he evidence suggests the contrary.”
For the on-premises rest break subclass, the trial court relied on WCQ’s written policy, in effect from November 7, 2014 through September 28, 2020, which stated that employees must remain on the premises during their breaks. For the wage statement subclass, the court noted it was undisputed the class members’ wage statements did not separately list meal period premiums paid, but rather incorporated them into the total regular hours listed on the statement.
In granting certification, the trial court rejected WCQ’s claim of a conflict among class members because some of them “had supervisory duties as ‘People Leaders’ and as such created and enforced break schedules.” The court found WCQ provided no evidence that “nonexempt supervisors have any role in setting company policy or granting premiums or determining the
Following certification, class notice was provided to 319 employees, 14 of whom opted out, resulting in a class of 305 members, with Mendoza as the class representative.2
B. First Disqualification Motion
In October 2023, WCQ filed its first motion to disqualify Capstone, arguing the firm’s representation of both supervisory and nonsupervisory class members created a conflict of interest. In opposition, Mendoza argued that WCQ improperly sought reconsideration of the class certification ruling; WCQ lacked standing to assert this conflict; and even if WCQ had standing, the motion lacked merit because the class claims relied entirely on break policies created by WCQ management, not the decisions of supervisory class members.
The trial court denied the motion without prejudice for several reasons. First, the court reiterated its prior finding that “there is no ‘evidence that nonexempt supervisors have any role in setting company policy or granting premiums or determining the content of wage statements.’ [Citations.] [WCQ] cites the same evidence in this Motion as it did at certification.” The court further found that “ ‘[w]atching’ schedules and ‘making sure’ people take breaks on time is different from ‘creating’ ” the meal and rest break policies at issue in the case. The court concluded that WCQ’s “fill-in-the-blank” declarations of four class members (Eddy Lee, Jose Vargas, Parveen Pal, and Virgilio Presa) had “limited evidentiary value” and “[ran] counter to
C. Renewed Disqualification Motion
In April 2024, WCQ filed a renewed motion to disqualify Capstone. Incorporating the arguments from its prior motion, WCQ again argued there were “impossible opposing interests of supervisor class members” within the certified class. (Boldface and capitalization omitted.) This time, WCQ based its arguments on evidence that certain supervisory class members were opposed to the action, and that Capstone had “vicious[ly]” cross-examined some of them in deposition.
The supporting evidence included a handwritten letter by supervisory class member Presa opining that “[t]he case is [a] lie” and expressing concerns about the conduct of class counsel during Presa’s deposition. WCQ also submitted excerpts from deposition transcripts in which supervisory class members testified that Mendoza’s key allegations in his declaration were untrue. WCQ further maintained that a Capstone attorney had “exposed class member John Yasa’s questionable meal practices” during his deposition, causing Yasa to suffer “emotional trauma” and to file an ethics complaint with the state bar against the attorney.
The trial court denied the motion, finding “no disqualifying conflict.” The court explained, “[WCQ] argues that the supervisor’s job duties included enforcement of break policies, meaning that class counsel ‘would have to impeach’ the supervisor class members in order to provide the class claims. [Citation.] Not so.” [¶] “While [WCQ’s] defense appears to be that the ‘supervisor’ class members are responsible for break policies, the court certified the classes based on [WCQ’s] ‘express policy and statistical
Additionally, the trial court ruled that WCQ lacked standing to assert a breach of Capstone’s duty of loyalty to the class or to object to Capstone’s questioning of class members at deposition. Noting that WCQ’s claim of standing was based on its desire to “avoid[] a trial,” the court concluded this was insufficient to create standing and suggested the motion was being “used to gain tactical advantage.”
DISCUSSION
“Disqualification motions implicate several important interests, among them are the clients’ right to counsel of their choice, the attorney’s interest in representing a client, the financial burden of replacing a disqualified attorney, and tactical abuse that may underlie the motion. [Citation.] The ‘paramount’ concern in determining whether counsel should be disqualified is ‘the preservation of public trust in the scrupulous administration of justice and the integrity of the bar.’ ” (Roush v. Seagate Technology, LLC (2007) 150 Cal.App.4th 210, 218–219.) Disqualification motions are uniquely “ ‘prone to tactical abuse because disqualification imposes heavy burdens on both the clients and courts; clients are deprived of their chosen counsel, litigation costs inevitably increase and delays inevitably occur. As a result, these motions must be examined “carefully to ensure that literalism does not deny the
We review an order granting or denying a disqualification motion for abuse of discretion, and we will reverse the trial court’s decision “only when there is no reasonable basis” for it, accepting as correct the court’s express or implied findings that are supported by substantial evidence. (Costello v. Buckley (2016) 245 Cal.App.4th 748, 752–753.)
The challenge here is to representation by counsel that is concurrent, as opposed to successive. “The ‘primary value’ at issue in concurrent ‘or dual representation is the attorney’s duty—and the client’s legitimate expectation—of loyalty.’ [Citation.] ‘The most egregious conflict of interest is representation of clients whose interests are directly adverse in the same litigation. [Citation.] Such patently improper dual representation suggests to the clients—and to the public at large—that the attorney is completely indifferent to the duty of loyalty.’ ” (Walker v. Apple, Inc. (2016) 4 Cal.App.5th 1098, 1106 (Walker).)
WCQ maintains that Capstone’s concurrent representation of supervisory and nonsupervisory class members should not be countenanced because its loyalty is impermissibly divided between the interests of the two groups. Importantly however, in the context of class actions, the general rules of disqualification “ ‘cannot be applied [mechanically] so as to defeat the purpose of the class proceedings.’ [Citation.] ‘Rather, the circumstances of each case must be evaluated.’ ” (Walker, supra, 4 Cal.App.5th at p. 1107, citing Sharp, supra, 163 Cal.App.4th at p. 434; see also Radcliffe v. Hernandez (9th Cir. 2016) 818 F.3d 537, 547 [“California law does not require
In light of these authorities, and mindful of the potential for tactical abuse in defense motions to disqualify class counsel, we turn our attention to the particular circumstances of this case. We begin with the operative complaint, which alleges that both supervisory and nonsupervisory class members were nonexempt employees of WCQ subject to the same uniform policy regarding meal and rest breaks, and that they were denied legal meal and rest breaks, related premium payments, and legally compliant wage statements. As far as these claims are concerned, there is no adversity between the interests of the supervisory and nonsupervisory class members that would divide class counsel’s loyalty in seeking relief for WCQ’s alleged wage and hour violations.
That the class consists of nonexempt employees at different levels of authority does not, by itself, signal that Capstone’s loyalty is divided. In this regard, we observe federal courts have held that class counsel is not impermissibly conflicted due to the mere fact that “the class cuts across levels of authority in a company, with some class members supervising other class members.” (Blackwell v. Skywest Airlines (S.D. Cal. 2007) 245 F.R.D. 453, 464; see Moore v. Ulta Salon, Cosmetics & Fragrance, Inc. (C.D. Cal. 2015) 311 F.R.D. 590, 606 (Moore).) Like the federal courts, we decline to recognize a per se rule against including employees at different levels of an employment hierarchy in the same class. (See ibid.)3
WCQ still insists that Capstone is conflicted because it will likely have to cross-examine and attack the job performance of the supervisory class members due to their responsibility for scheduling the breaks of the nonsupervisory class members. In support, WCQ relies on Walker, which affirmed the disqualification of a law firm representing employees of Apple, Inc. (Apple) in two separate wage and hour class actions, one for meal and rest break violations, and the other for failure to provide final wage statements upon termination. (Walker, supra, 4 Cal.App.5th at pp. 1102–1103.)
In Walker, one of Apple’s employees (Meg Karn) was a class member in the first class action at the time of certification, but she had since been promoted to store manager and was responsible for the final wage statements of the named plaintiffs (Walkers) in the second class action. (Walker, supra, 4 Cal.App.5th at p. 1104.) In affirming the grant of Apple’s motion to disqualify class counsel in the second class action, the Court of Appeal concluded there was substantial evidence that under the particular circumstances of the case, the interests of the Walkers and Karn were adverse. (Id. at pp. 1104–1105, 1111.) Specifically, it was “not merely hypothetical or speculative that Karn will eventually testify in some capacity during this case,” which might put Karn’s employment prospects in jeopardy. (Id. at p. 1111.) As Walker explained, it was “unseemly” and violative of the
Critical to Walker’s holding were two specific rulings of the trial court. First, “[t]he court rejected the Walkers’ argument that ‘it is Apple’s company-wide policies and practices that form the basis of Plaintiff’s claims.’ ” (Walker, supra, 4 Cal.App.5th at p. 1105.) Second and relatedly, the court found it “undisputed” that store manager Karn was responsible for providing timely final wage statements to the Walkers. (Ibid.) In stark contrast, the trial court here found that the basis for Mendoza’s meal and rest break claims was WCQ’s uniform break policies, and that the supervisory class members played no part in creating these policies. These findings were supported by substantial evidence, which included the written policies themselves; the deposition testimony of WCQ’s director of human resources that he, with the assistance of counsel, created the applicable wage and hour policies for the company; the deposition testimony of supervisory class members that they simply adhered to the company’s break policies; and Dr. Fountain’s analysis of clock punch records that tended to show WCQ’s break policies more often than not resulted in untimely meal breaks.
Even if the evidence suggests supervisory class members helped to implement the challenged policies, we are not convinced the trial court abused its discretion in finding no disqualifying conflict. Liability against WCQ is still premised on the predominant effect of the company’s written policies on all the class members. (See, e.g., Moore, supra, 311 F.R.D. at p. 606 [no conflict among putative class of nonsupervisory and supervisory
We acknowledge the record reflects a degree of tension between class counsel and some supervisory class members, including instances in which the class members accused Capstone of fabricating the allegations of the lawsuit or expressed confusion about whether Capstone was representing them.5 But importantly, the salient question for disqualification purposes is whether the concurrently represented clients have “directly adverse
WCQ further submits that during the deposition of supervisory class member Yasa, Capstone attorney Daniel Jonathan caused Yasa to confess to “cheat[ing] the company by having taken meals on the clock in addition to taking unpaid meal breaks.” According to WCQ, this exchange illustrated direct adversity as described in comment 1 to Rule 1.7 of the Rules of Professional Conduct of the State Bar of California (Rule 1.7), which states that “direct adversity can arise when a lawyer cross-examines a non-party witness who is the lawyer’s client in another matter, if the examination is likely to harm or embarrass the witness.” We are not persuaded.
In any event, WCQ fails to persuade us that Capstone will likely have to examine Yasa at trial along these lines in order to prove WCQ’s liability for wage and hour violations based on its company-wide policies and practices.
WCQ next complains the trial court “entirely ignored” WCQ’s argument that a judgment in this case may not have preclusive effect on absent class members due to Capstone’s purported conflict of interest. (See Cal Pak Delivery, Inc. v. United Parcel Service, Inc. (1997) 52 Cal.App.4th 1, 12 (Cal Pak) [where there is reason to doubt loyalty of counsel, “serious questions arise concerning the preclusive effect of any resulting judgment”].) As part of this argument, WCQ accuses Capstone of failing to “vigorously and tenaciously” prosecute the action on behalf of the class because Capstone has not sued the supervisory class members as “person[s] acting on behalf of an employer” under
WCQ’s reliance on
At best, the evidence in this case was disputed as to whether the supervisory class members exercised the requisite level of independent authority and judgment to constitute persons acting on behalf of WCQ for
Finally, WCQ argues Capstone must be disqualified because its continuing representation of supervisory and nonsupervisory class members will have a “substantial continuing effect” on future proceedings. For example, WCQ argues that supervisory class members like Yasa and Presa may refuse to cooperate with Capstone going forward, and that WCQ will not be able to communicate internally with the supervisory class members now that they are now part of a certified class.
We find WCQ’s reliance on the “substantial continuing effect” rationale to be misguided. In City of San Diego v. Superior Court (2018) 30 Cal.App.5th 457, the court explained that because disqualification of counsel is a prophylactic remedy, it is not appropriate to disqualify an attorney as punishment for a “dereliction that will likely have no substantial continuing effect on future judicial proceedings”; conversely, disqualification is appropriate where there is a “ ‘reasonable probability’ or ‘genuine likelihood’ ” that an attorney’s status or misconduct will “ ‘affect the outcome of the
DISPOSITION
The order denying WCQ’s renewed motion to disqualify class counsel is affirmed. Mendoza is entitled to his costs on appeal.
Fujisaki, Acting P.J.
WE CONCUR:
Rodríguez, J.
Burns, J. *
Mendoza v. West Coast Quartz Corporation (A170409)
* Associate Justice of the Court of Appeal, First Appellate District, Division Five, assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.
