Fuapau v. LHOIST North America of Arizona, Inc.
- Virginia Demarchi
- 5:20-cv-04404
- U.S. District Court · Northern District of California
- 5
In Fuapau v. LHOIST, Judge Demarchi preliminarily approved a wage settlement, conditionally certified the class, and approved the proposed notice.
The named plaintiffs, the proposed class of current or former employees covered by the settlement, and Lhoist North America of Arizona, Inc.
What happened
In Fuapau v. LHOIST North America of Arizona, Inc., the plaintiffs brought a state wage-and-hour case for themselves and others against their employer. The parties reached a settlement, and the plaintiffs asked the court to approve it at the preliminary stage.
The court had previously denied that request without prejudice because it needed more information about class representation, the strength and risks of the claims, the settlement amount, notice, attorneys’ fees, and possible collusion. After reviewing the parties’ supplemental briefing, the court found those concerns adequately addressed. It found the settlement fair, reasonable, and adequate, and found the proposed notice and distribution plan adequate.
Judge Demarchi granted the motion for preliminary approval, conditionally certified the class, and approved the proposed notice. The court also found that Miguel Mendoza adequately represented the class. It stated that a separate order would address further proceedings.
The detailed version
- Fuapau v. LHOIST North America of Arizona, Inc. · No. 5:20-cv-04404
- Virginia Demarchi
- May 11, 2022
Background
The plaintiffs filed a state-law wage-and-hour action against Lhoist North America of Arizona, Inc., on behalf of themselves and others similarly situated. The parties agreed to settle the case. Lhoist did not oppose the plaintiffs’ motion for preliminary approval.
The court had denied the original motion without prejudice on March 21, 2022, because it had concerns about several aspects of the proposed settlement. The parties later submitted a joint supplemental brief addressing those concerns.
Court’s analysis
The court found that all named plaintiffs, including Miguel Mendoza, adequately represented the proposed class. Mendoza had separately settled his individual claims with Lhoist, but the court concluded after reviewing additional information that he could still adequately represent the class’s interests.
The supplemental briefing also explained the strengths and weaknesses of the plaintiffs’ wage-and-hour claims and the risks of continued litigation. Those risks included Lhoist’s defenses based on collective bargaining agreements, waivers, and releases. The court concluded that the proposed class faced substantial litigation risks, which supported preliminary approval.
The proposed settlement had a gross amount of $320,000 and a net amount of $167,083.33. The court had previously noted that those amounts represented 11.65% and 6.08%, respectively, of the estimated potential recovery. After considering the parties’ additional explanation about possible limitations on Labor Code claims, defenses related to collective bargaining agreements, and uncertainty surrounding claims under the Private Attorneys General Act, the court found the settlement fair, reasonable, and adequate.
The court also approved the proposed notice and distribution plan. Notice would generally be mailed to class members, with email notice used when mail was returned as undeliverable and no valid mailing address could be found. The court found that the notice adequately explained the consequences of remaining in the class, opting out, or objecting, including the release of specified claims and Private Attorneys General Act claims.
The parties represented that the plaintiffs would seek attorneys’ fees of no more than 25% of the gross settlement amount. The court also concluded that the supplemental information adequately addressed its concerns about possible collusion. The opinion did not award attorneys’ fees at this stage.
Disposition
The court granted the plaintiffs’ motion for preliminary approval of the settlement, conditionally certified the class, and approved the proposed form of notice. It also concluded that Mendoza was an adequate class representative. The court stated that it would issue a separate order concerning further proceedings.
Read the full 5-page opinion on CourtListener, the free public archive maintained by the Free Law Project.