Clayborne v. Chevron Corporation

Background

Shawn Clayborne filed the action against Chevron and Newtron. The operative complaint alleged that Chevron was liable as a joint employer and as a client-employer under California Labor Code section 2810.3. The wage-and-hour claims concerned alleged failures to pay covered workers for time spent traveling to and from jobsites and putting on personal protective equipment.

The parties negotiated a class and Private Attorneys General Act (PAGA) settlement after discovery, motion practice, and settlement conferences supervised by Magistrate Judge Spero. The $1,925,000 gross settlement fund included payments to class and PAGA group members, $115,000 in PAGA penalties as described in the settlement terms, up to $15,000 for a class-representative service award, up to $673,750 in attorneys’ fees, up to $45,000 in litigation costs, and settlement-administration expenses. The opinion also states that the PAGA allocation was $115,500, creating an unexplained inconsistency in the amounts stated in the opinion.

Final approval of settlement

The court approved the settlement class for settlement purposes. The class covered hourly workers employed by Newtron or third-party contractors who worked at Chevron’s El Segundo or Richmond refineries during the period beginning September 20, 2015, through preliminary approval. The PAGA group covered qualifying workers during the period beginning July 17, 2018, through preliminary approval.

The court found that the parties provided the best practicable notice under Federal Rule of Civil Procedure 23. One person requested exclusion, and no one objected by the final approval hearing. The court considered the disputed issues concerning Chevron’s potential employer liability, whether the claimed off-the-clock time was compensable, whether the class could be maintained, and how penalties should be calculated. It found that the settlement resulted from serious, non-collusive, arm’s-length negotiations and that the settlement amount and distribution were reasonable.

The court therefore granted the motion for final approval. It confirmed Clayborne as class representative and PAGA group representative and confirmed class counsel.

Fees, costs, administration, and service award

The court independently reviewed the requested attorneys’ fees. It found that an award of $673,750, equal to 35% of the common fund, was reasonable despite exceeding the Ninth Circuit’s general 25% benchmark. The court relied on the work performed, the contingent nature of the case, the result achieved, and a lodestar cross-check—a comparison to the attorneys’ time multiplied by their hourly rates. The court granted the request and awarded $673,750 in attorneys’ fees.

The court granted the request for litigation costs in the reduced amount of $39,898.45, rather than the requested amount of up to $45,000. It also granted approval for payment of no more than $90,000 to the settlement administrator.

Clayborne requested a $15,000 incentive payment. The court found that his participation did not justify that amount because he spent approximately 45 to 50 hours assisting counsel, was not required to sit for a deposition, and did not state that he feared for his professional or personal reputation. Still, the court found that he played an important role and faced at least some personal and professional risk. It therefore granted in part the service-award request and awarded him $10,000.

Judgment and disposition

The court ordered final approval of the settlement, made the release effective, directed the parties to comply with the agreement, and retained continuing authority over the settlement’s administration, completion, enforcement, and interpretation. The claims against Newtron and Chevron were dismissed with prejudice, and judgment was entered. The Clerk was directed to close the file.