Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_05-cv-01678/USCOURTS-casd-3_05-cv-01678-1/pdf.json

Nature of Suit Code: 790
Nature of Suit: Other Labor Litigation
Cause of Action: 28:1441 Petition for Removal- Labor/Mgmnt. Relations

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28 Order Granting Award of Attorneys’ Fees,

Costs, Class Representative Enhancements, etc., Case No. 05-CV-1678 WQH (JMA)

 

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

MICHAEL CLARK, and LUCINDA

PROUTY, on behalf of themselves and

all others similarly situated,

Plaintiffs,

v.

MICHAELS STORES, INC., a Delaware

Corporation; and DOES 1 through 100, Inclusive

Defendants.

 

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Case No. 05-CV-1678 WQH (JMA)

CLASS ACTION

ORDER GRANTING AWARD OF 

ATTORNEYS’ FEES, COSTS,

CLASS REPRESENTATIVES

ENHANCEMENT, AND CLAIMS 

ADMINISTRATION EXPENSES

Case 3:05-cv-01678-WQH-JMA Document 61 Filed 11/15/07 Page 1 of 6
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 Order Granting Award of Attorneys’ Fees,

Costs, Class Representative Enhancements, etc., Case No. 05-CV-1678 WQH (JMA)

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HAYES, Judge:

Pending before the Court is the parties’ joint motion for an Award of

Attorney’s Fees, Costs, Class Representative Enhancements, and Claims

Administration Fees. (Doc. # 58).

BACKGROUND

On August 25, 2005, Defendant Michaels Stores removed Plaintiffs’ Class

Action Complaint to this Court from the California State Superior Court. (Doc. #

1). Thereafter, the Court resolved certain discovery disputes and the parties

appeared at a number of conferences before the Honorable Jan M. Adler, United

States Magistrate Judge. (Docs. # 8-29). On or before October 24, 2006, the

parties settled the case. (Doc. # 30).

On March 13, 2007, the parties filed a joint motion for Preliminary

Approval of the Class Action Settlement. (Doc. # 38). On April 23, 2007, the

parties appeared before the Honorable William Q. Hayes, United States District

Judge, to argue in support of their motion for Preliminary Approval of the Class

Action Settlement. (Doc. # 46). Thereafter, on April 24, 2007, the Court ordered

the parties to submit additional briefing with respect to class certification (Doc. #

48), and on May 2, 2007, the parties filed the requested supplemental briefing and

additional supporting declarations. (Docs. # 49, 50). On May 23, 2007, and after

reviewing the relevant case law and the parties’ moving papers and supporting

declarations, the Court granted the parties motion for Preliminary Approval of the

Class Action Settlement and conditionally certified the case as a class action. 

(Doc. # 54).

On October 3, 2007, the parties filed the presently pending motion for an

Award of Attorney’s Fees, Costs, Class Representative Enhancements, and Claims

Administration Fees. (Doc. # 58). In support of the motion, the parties submitted

substantial briefing, exhibits, and declarations. (Docs. # 57-58).

/

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 Order Granting Award of Attorneys’ Fees,

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STANDARD OF REVIEW

“Attorneys’ fees provisions included in proposed class action settlement

agreements are, like every other aspect of such agreements, subject to the

determination whether the settlement is ‘fundamentally fair, adequate, and

reasonable.’” Staton v. Boeing Co., 327 F.3d 938, 963 (9th Cir. 2003) (citing FED.

R. CIV. P. 23(e)). Accordingly, “to avoid abdicating its responsibility to review

the agreement for the protection of the class, a district court must carefully assess

the reasonableness of a fee amount spelled out in a class action settlement

agreement.” Id.

ORDER

This matter was heard by the Court on October 18, 2007, at 3:00 pm., in

Department 4 of the United States District Court for the Southern District before

the Honorable William Q. Hayes pursuant to the noticed Motion for Award of

Attorneys’ Fees, Costs, Class Representative Enhancements, and Claims

Administration Expenses. (Doc. # 58).

The Court having considered the documents filed by the Parties in

connection with the class action settlement, the oral arguments of counsel, as well

as the comments and materials received from Parties interested in the Settlement,

finds as follows:

1. The Court finds that Class Counsel, having conferred a benefit on

absent Class Members and having expended efforts to secure a benefit to the

Class, is entitled to a fee and accordingly, the Court approves the application of

Class Counsel, Law Offices of Cohelan & Khoury and Backstrom & Heinrichs, 

for $1,290,000.00 for their attorneys’ fees and $23,176.45 for their litigation

expenses. 

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1

 “Final Approval” defined in the Settlement Agreement at Paragraph 1.4, 

means “the date when this Stipulation of Settlement has been approved by the

District Court and the period for appeal has expired, or in the event of an appeal,

the appeal has been finally resolved to uphold the District Court’s approval of the

Stipulation of Settlement.”

 Order Granting Award of Attorneys’ Fees,

Costs, Class Representative Enhancements, etc., Case No. 05-CV-1678 WQH (JMA)

 -3-

2. The Court further approves a payment of an enhancement to each of

the two Class Representatives, Plaintiff MICHAEL CLARK and Plaintiff

LUCINDA PROUTY in the amount of $5,000.00 for the initiation of this action,

work performed, and the risks undertaken for the payment of attorneys’ fees and

costs as set forth in the moving papers. 

3. The Court also hereby approves payment of the fees and costs of 

Rust Consulting, Inc., the appointed claims administrator, of $202,648.88 for

services rendered and to be rendered in connection with the completion of its

duties pursuant to the settlement.

4. Any separate appeal from the portion of the Judgment regarding the

attorneys’ fees and litigation costs awards or the Class Representative

enhancement awards shall not operate to terminate or cancel the Settlement

Agreement or otherwise affect the finality of this Judgment. 

5. Defendant shall deliver, within five (5) days after the effective date1

of settlement, to Rust Consulting, Inc., the appointed claims administrator, all

sums necessary to pay the Court-awarded attorneys’ fees, costs, class

representative enhancements, claims administration expenses, and the claims of all

members of the class who submitted valid and timely claims approved for

payment pursuant to terms of the Settlement Agreement.

 

6. The Court further approves and directs Rust Consulting, Inc., within

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 Order Granting Award of Attorneys’ Fees,

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fourteen (14) days after the effective date of settlement, to disburse to those

persons and entities referenced below, in the manner set forth, the following sums: 

A. Law Offices of Cohelan & Khoury, for Class Counsels’

attorneys’ fees: $1,290,000, by wire transfer;

B. Law Offices of Cohelan & Khoury, for their litigation costs:

$22,818.03, by wire transfer; 

C. Law Offices of Backstrom & Heinrichs, for their litigation

costs: $358.42,

D. Rust Consulting, Inc., the Claims Administrator, the sum of

$202,648.88 for services rendered in connection with its duties

and responsibilities to process claims and to disburse payments

pursuant to the terms of the settlement, prepare required tax

reporting for such payments, and respond to continuing

inquiries from the class and the Parties; 

E. Class Representative Enhancement Awards to: 

1) Plaintiff, Michael Clark

a) $5,000.00 to be paid from the Settlement Fund, by

check delivered to Class Counsel, Cohelan &

Khoury;

2) Plaintiff, Lucinda Prouty

a) $5,000.00 to be paid from the Settlement Fund, by

check delivered to Class Counsel, Cohelan &

Khoury;

F. Individual Settlement Payment checks in accordance with the

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 Order Granting Award of Attorneys’ Fees,

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Settlement Agreement to those members of the Class who

submitted valid Claim Forms, approved for payment, by U.S.

First Class Mail. 

8. The Court retains jurisdiction over the administration and

effectuation of the Settlement including, but not limited to, the ultimate disbursal

to the participating Class Members, payment of attorneys’ fees and costs, the

enhancement award to the Class Representatives, and the claims administration

expenses and other issues related to this Settlement. 

IT IS SO ORDERED.

DATED: November 15, 2007

WILLIAM Q. HAYES

United States District Judge

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