Durham v. Sachs Electric Company

Background

William Durham brought this wage-and-hour class action against Sachs Electric Company and McCarthy Building Companies, Inc., alleging that workers at the California Flats Solar Project were not paid for certain work-related travel and break time. Employees allegedly had to travel from a security gate to parking lots and then use company buggies to reach their work locations. Durham also alleged unpaid meal and rest-break time, wage-statement and record-keeping violations, unpaid termination wages, and failure to reimburse vehicle expenses. He asserted claims under the California Labor Code, California’s Unfair Competition Law, and the California Private Attorney General Act.

During the case, the court dismissed Durham’s claims against McCarthy. The court had previously granted or partially granted some defense motions, denied Sachs’s request for judgment on the pleadings concerning Drive Time, denied Sachs’s summary-judgment request concerning Buggy Time, and certified several classes. The court also considered related litigation involving the same solar project, including rulings that Drive Time was not compensable.

The parties later reached a settlement. The settlement class consisted of all non-exempt Sachs employees who worked at the California Flats Solar Project from July 25, 2014, through the date of preliminary approval. The gross settlement amount was $775,000. The agreement provided for deductions of $5,000 for Durham’s service award, $258,333 in attorneys’ fees, up to $25,000 in attorneys’ costs, $22,500 for a payment under the Private Attorney General Act to the California Labor and Workforce Development Agency, and $11,000 for the settlement administrator. The costs ultimately requested and approved were $8,141.81, leaving $453,167 for distribution to class members.

Class Certification and Settlement Review

For settlement purposes, the court concluded that the class met Federal Rule of Civil Procedure 23. The class had more than 700 members, the legal and factual issues were common, Durham’s claims were typical of the class, and Durham and class counsel adequately represented the class. The court also found that common issues predominated and that a class action was a superior and more efficient method of resolving the dispute.

The court found that the notice process was adequate. The settlement administrator mailed notices to class members, maintained a toll-free telephone line and website, and located updated addresses for most returned notices. The court found that the settlement was fair, adequate, and reasonable and was not the result of collusion. In applying the Ninth Circuit’s settlement factors, the court considered the risks and expense of continued litigation, the parties’ discovery and motion practice, the strength and weaknesses of Durham’s claims, the settlement amount, counsel’s experience, and the class members’ response. No objections were filed, and one potential class member opted out.

Fees, Costs, and Service Award

The court approved $258,333 in attorneys’ fees, approximately 33 percent of the gross settlement. Although that percentage exceeded the Ninth Circuit’s 25-percent benchmark, the court found the higher award justified by the difficulty and risks of the litigation, the recovery obtained for the class, and the lack of objections. A lodestar cross-check—comparing the fee request with the attorneys’ reasonable hours multiplied by reasonable hourly rates—also supported the award. The court approved $8,141.81 in litigation costs after finding the expenses necessary.

The court approved Durham’s $5,000 service award, finding that he had gathered documents, communicated with class counsel, and undertaken financial risk in pursuing the case. It also approved the $11,000 settlement-administrator fee and the Justice Gap Fund as the recipient of settlement checks that remain uncashed after 180 days.

Order

Judge Beth Labson Freeman granted Durham’s final approval motion. The court certified the class for settlement purposes, appointed Durham as class representative, approved Lonnie C. Blanchard III and Peter R. Dion-Kindem as class counsel, approved Simpluris, Inc. as settlement administrator, approved the class notice and distribution method, approved the $775,000 settlement and listed deductions, and approved the Justice Gap Fund as the recipient of uncashed funds.