Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_04-cv-05516/USCOURTS-caed-1_04-cv-05516-3/pdf.json

Nature of Suit Code: 791
Nature of Suit: Employee Retirement Income Security Act (ERISA)
Cause of Action: 29:1145 E.R.I.S.A.

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ORDER GRANTING FINAL APPROVAL AND ATTORNEYS’ FEES AND COSTS

[CASE NO.: CIV. F-04-5516 AWI SMS] PAGE 1

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

THOMAS COLESBERRY, EVA GUERRERO and

DAVID HUGH OLSON, On Behalf of Themselves

and All Others Similarly Situated, 

 

Plaintiffs,

vs.

RUIZ FOOD PRODUCTS, INC., THE PLAN

COMMITTEE of RUIZ FOOD PRODUCTS, INC.

EMPLOYEE STOCK OWNERSHIP PLAN,

FREDERICK R. RUIZ, KIMBERLEY RUIZ-BECK,

F. BRYCE RUIZ, RUIZ GENERATION 3, LLC, and

CONSULTING FIDUCIARIES, INC.

Defendants.

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Case No.: CIV. F-04-5516 AWI SMS

ORDER GRANTING FINAL

APPROVAL OF CLASS ACTION

SETTLEMENT AND AWARD OF

ATTORNEYS’ FEES AND COSTS

This matter is before the Court on the motion of Plaintiffs Thomas Colesberry, Eva

Guerrero, and David Hugh Olson for final approval of the class action settlement reached in this

action, award of attorneys’ fees and costs, and award of service payments to the class

representatives.

The Court, having entered an Order on July 3, 2006, preliminarily approving the

Settlement Agreement and conditionally certifying the following class:

All persons who were participants or beneficiaries entitled to benefits under the Plan as of

Case 1:04-cv-05516-AWI -SMS Document 51 Filed 11/14/06 Page 1 of 5
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ORDER GRANTING FINAL APPROVAL AND ATTORNEYS’ FEES AND COSTS

[CASE NO.: CIV. F-04-5516 AWI SMS] PAGE 2

September 10, 2001, or April 5, 2002. Excluded from the class are: Fred Ruiz, Kim

Beck, and Bryce Ruiz;

having directed that Notice be given to all Class Members of the proposed Settlement and of a

hearing (the “Final Approval Hearing”) scheduled to determine whether the proposed Settlement

should be finally approved as fair, adequate, and reasonable, and to hear any objections to any of

these matters; having considered Plaintiffs’ motion for final approval of the Settlement and

documents in support thereof; having considered the Settlement Agreement and all exhibits

attached thereto; and having considered all of the submissions and arguments with regard to

Plaintiffs’ motion for final approval; and having held the Final Approval Hearing and considered

the submissions and arguments made in connection therewith;

THE COURT HEREBY FINDS AS FOLLOWS:

1. To the extent defined in the Settlement Agreement and incorporated herein by

reference, the terms in this Order shall have the meanings set forth therein or in the Order of July

3, 2006, preliminarily approving the Settlement.

2. The Court has subject matter jurisdiction over this action and personal jurisdiction

over the parties.

3. Without affecting the finality of this Order and Judgment, the Court retains

jurisdiction over the interpretation, administration, and consummation of the Settlement

Agreement and its Orders.

4. Notice to the Class Members has been given in an adequate and sufficient manner,

and the notice given constitutes the best notice practicable, complying in all respects with federal

law and the requirements of due process. Notice given to Class Members was reasonably

calculated under the circumstances to apprise Class Members of the pendency of this action, of

all material elements of the proposed Settlement, and of their opportunity to object to or

comment on the Settlement and to appear at the Final Approval Hearing. Full opportunity has

been afforded to Class Members to participate in the Final Approval Hearing. Accordingly, the

Court finds that all Class Members are bound by this Order.

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ORDER GRANTING FINAL APPROVAL AND ATTORNEYS’ FEES AND COSTS

[CASE NO.: CIV. F-04-5516 AWI SMS] PAGE 3

5. The Order of July 3, 2006, of this Court certifying the class defined above

pursuant to Fed. R. Civ. P. Rule 23(a) and 23(b)(1)(B) is confirmed.

6. Because the Court certified the settlement class under Rule 23(b)(1)(B), class

members may not opt out of the mandatory Class.

7. The Court set a deadline of October 6, 2006, for Class Members to file objections

to the Settlement. No objections have been filed. The Court has held a hearing to consider the

fairness, reasonableness, and adequacy of the proposed settlement. 

8. The Settlement Agreement was made in good faith. Arm’s length negotiations

took place between Class Counsel and defense counsel, under the supervision of the mediator,

Judge (Ret.) Charles Renfrew, that resulted in the proposed Settlement.

9. The proposed Settlement – being in all respects fair, reasonable, adequate, proper,

and in the best interests of the Class Members given the benefits of the settlement and the risks,

complexity, expenses, and probable duration of further litigation between Class Members and

Defendants – is accordingly finally approved. 

10. In accordance with the terms of the Settlement Agreement, which are hereby

incorporated by reference as though fully set forth herein, it is hereby ordered, adjudged, and

decreed as follows: the Ruiz Defendants are ordered to provide statements of the number of RFP

shares in each Class Member’s account on the transaction dates, and the Settlement Amount to

be paid to the Plan and allocated to each Class Member’s account, no later than the Effective

Date, as required by Paragraph II.B.2.g.ii of the Settlement Agreement. Defendants are further

ordered to ensure that the Plan provides the Statement of Settlement Amount required by

Paragraph II.B.2.g.iii to each Class Member within fourteen (14) days of the Effective Date, for

which the Ruiz Defendants shall bear the costs. Also in accordance with the Settlement

Agreement, Defendants are ordered to transfer the Settlement Amount in the Escrow Account,

minus attorneys’ fees and costs of $355,000 as described in Paragraph 18 below, and less any

escrow fees and/or applicable taxes, to the ESOP trust to be held on behalf of the Class

Members. This transfer must take place within fourteen (14) days of the Effective Date. 

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ORDER GRANTING FINAL APPROVAL AND ATTORNEYS’ FEES AND COSTS

[CASE NO.: CIV. F-04-5516 AWI SMS] PAGE 4

11. Also in accordance with the Settlement Agreement, Defendants are ordered to

allocate the Settlement Amount among Class Members (or their Plan accounts, as appropriate),

in accordance with Paragraphs II.B.2.e and II.B.2.g.i within 60 days of the Effective Date. 

Defendants are discharged and released from the Released Claims as defined in Sections II.A.5

and II.B.1.c of the Settlement Agreement. Nothing in this Order shall be construed to affect any

claims not released under the terms of the Settlement Agreement.

12. Named Plaintiffs and the Class Members, as well as their fiduciaries, trustees,

heirs, executors, administrators, beneficiaries, representatives, predecessors, agents, attorneys,

successors, and assigns, are barred and enjoined from instituting, maintaining, prosecuting or

enforcing, in any capacity, the Released Claims against the Released Persons, except to the

extent that this Court retains jurisdiction to enforce the Settlement and effectuate the terms of the

Settlement.

13. Nothing in the Settlement Agreement, or this Order is an admission by any

Defendant of any liability or wrongdoing.

14. The Court has examined Plaintiffs’ request for award of attorney’s fees, costs, and

class representative payments. The Court finds that Class Counsel has devoted substantial time

to this litigation for the benefit of the Class, represented the Class on a contingent fee basis, and

obtained an excellent result for the Class. The Court further finds that Plaintiffs’ requested

award of $525,000 for attorneys’ fees and costs, of which $170,000 is to be paid by the Ruiz

Defendants and $355,000 from the Settlement Amount, is reasonable in light of the factors listed

above and of the fact that the fees requested represent less than ten (10) percent of the monetary

value of the Settlement, and the Class’s portion represents only 6.5 percent of the Settlement

Amount, which is substantially less than the 25 percent “benchmark” in the Ninth Circuit. Six

Mexican Workers v. Arizona Citrus Growers, 904 F.2d 1301, 1311 (9th Cir. 1990); Paul,

Johnson, Altson & Hunt v. Graulty, 886 F.2d 268 (9th Cir. 1989); Torrisi v. Tucson Electric

Power Co., 8 F. 3d 1370, 1376-77 (9th Cir. 1993). 

15. The Court further finds that Plaintiffs’ request for award of costs for out-of-pocket

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ORDER GRANTING FINAL APPROVAL AND ATTORNEYS’ FEES AND COSTS

[CASE NO.: CIV. F-04-5516 AWI SMS] PAGE 5

expenses incurred by Class Counsel in the litigation is reasonable. The Court finds that the costs

requested to be reimbursed were reasonably incurred for the benefit of the Class. The Court

finds the request particularly reasonable in light of the fact that the reimbursement of costs will

not increase the amount that the Class pays to Class Counsel.

16. Therefore, in accordance with the terms of the Settlement, the Ruiz Defendants

are ordered to pay to Class Counsel, within fourteen (14) business days of the Effective Date,

$170,000 for attorneys’ fees and costs. The parties are further ordered to cause $355,000 for

attorneys’ fees and costs to be paid to Class Counsel from the Settlement Amount at that time.

17. The Court further finds that the Class Representatives played a significant role in

developing the factual background for this litigation and in settlement negotiations. Plaintiffs’

requested service payments of $4,000 each for the Class Representatives are modest in

comparison to service payments awarded to class representatives in other cases, and are

reasonable in light of the Class Representatives’ contributions to the litigation. Therefore

Plaintiffs’ request for service payments of $4,000 each to Thomas Colesberry, Eva Guerrero, and

David Hugh Olson by the Ruiz Defendants is approved. Ruiz Defendants are ordered to deliver

checks for the service payments to Class Counsel within fourteen (14) business days of the

Effective Date.

IT IS SO ORDERED.

Dated: November 13, 2006 /s/ Anthony W. Ishii 

0m8i78 UNITED STATES DISTRICT JUDGE

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