Dahlheimer v. Oberg

Background

The court considered the parties’ joint motion to certify a class and preliminarily approve a settlement. The plaintiffs were Rosalee Dahlheimer, Jessica Onu, and Jessica Garcia, individually and on behalf of others similarly situated. The defendants were Massage Retreat & Spa, Inc. and Lee Oberg.

Settlement Class

For settlement purposes only, the court certified a class consisting of all current and former Skin Therapists, Lead Skin Therapists, Massage Therapists, and Lead Massage Therapists employed by Massage Retreat & Spa, Inc. between June 8, 2015, and May 13, 2018.

The court found that the estimated 300 class members met the numerosity requirement under Federal Rule of Civil Procedure 23(a)(1). It also found important legal questions common to the class, that the named plaintiffs’ claims were typical and did not conflict with other class members’ claims, and that the named plaintiffs and their counsel could adequately represent the class. The court further found that common questions predominated and that a class action was preferable to individual litigation of nearly 1,000 cases.

The certification was limited to settlement purposes. If the settlement did not become effective, the certification order would be vacated and the parties would return to their prior positions. The order stated that it was not an admission, concession, or presumption by or against any party.

Rulings

The court granted the joint motion to certify the class and for preliminary approval of the settlement. It approved the proposed settlement notice, opt-out form, and claim form and directed the parties to mail them by July 9, 2019.

After a preliminary review of the proposed settlement’s distribution process, notice and payment procedures, anticipated recovery, and attorney-fee provisions, the court preliminarily found the settlement fair, reasonable, and adequate. The court stated that it would consider these issues further at a final approval hearing. It also found that the proposed notice procedure met due-process requirements and was the best notice practicable under the circumstances.

The court appointed Joshua Williams and the Law Office of Joshua R. Williams as class counsel. Magistrate Judge Menendez scheduled a final approval hearing for September 30, 2019, to consider final approval of the settlement, whether non-objecting class members would be bound by the proposed release when cashing their checks, and whether to approve the proposed class-representative award and class counsel’s fees and expenses.

Class members could object or request exclusion according to the procedures in the order. Objections and requests for exclusion were due to class counsel by September 16, 2019, and class counsel had to submit them to the court and defense counsel by September 23, 2019. The order provided that only class members who did not opt out would be eligible for settlement benefits. It also stated that, upon entry of final judgment, the named plaintiffs and non-excluded class members would be barred from asserting and would release the claims described in the settlement agreement.