Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_13-cv-03016/USCOURTS-cand-3_13-cv-03016-6/pdf.json

Nature of Suit Code: 710
Nature of Suit: Fair Labor Standards Act
Cause of Action: 29:201 Fair Labor Standards Act

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STIPULATION OF DISMISSAL 

C 12-05109; C 13-03016; C 14-01449

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TIMOTHY J. LONG, CSBN 137591

tjlong@orrick.com

ORRICK, HERRINGTON & SUTCLIFFE LLP 

400 Capitol Mall 

Suite 3000 

Sacramento, California 95814 

Telephone: 916.329.7919 

Facsimile: 916.329.4900 

Attorneys for Defendants 

ALLEN RYAN VAUGHT, Pro Hac Vice

avaught@baronbudd.com 

BARON & BUDD, P.C. 

15910 Ventura Boulevard 

Encino Plaza, Suite 1600 

Encino, CA 91436 

Telephone: 818.839.2333 

Facsimile: 818.986.9798 

JAHAN C. SAGAFI, CSBN 224887 

jsagafi@outtengolden.com 

CHRISTOPHER M. MCNERNEY 

cmcnerney@outtengolden.com 

OUTTEN & GOLDEN LLP 

One Embarcadero Center, 35th Floor 

San Francisco, CA 94111 

Telephone: 415.638.8800 

Facsimile: 415.638.8810 

KELLY M. DERMODY, CSBN 171716 

kdermody@lchb.com 

DANIEL M. HUTCHINSON, CSBN 

 239458 

dhutchinson@lchb.com

LIEFF, CABRASER, HEIMANN & 

BERNSTEIN, LLP 

Embarcadero Center West 

285 Battery Street, 29th Floor 

San Francisco, CA 94111-3339 

Telephone: 415.956.1000 

Facsimile: 415.956.1008 

LEWIS LYNN ELLSWORTH, CSBN 

 79998 

lellsworth@gth-law.com 

WARREN EVANS MARTIN, WSBN 

17235

wmartin@gth-law.com 

GORDON THOMAS HONEYWELL 

P.O. Box 1157 

Tacoma, WA 98401-1157 

Telephone: 253.620-6505 

Facsimile: 253-620-6565 

RICHARD H. WOOSTER, WSBN 13752 

rich@kjwmlaw.com 

KRAM & WOOSTER 

1901 South “I” Street 

Tacoma, WA 98405 

Telephone: 253.572.4161 

Facsimile: 253.572.4167 

Attorneys for Plaintiffs 

Case 3:13-cv-03016-SI Document 111 Filed 04/18/16 Page 1 of 7
- 2 - STIPULATION OF DISMISSAL

C 12-05109; C 13-03016; C 14-01449

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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

Zaborowski et al., 

Plaintiffs,

v.

MHN Government Services, Inc. et al., 

Defendants.

Case No. C 12-05109 SI 

STIPULATION FOR DISMISSAL WITH 

PREJUDICE PURSUANT TO FED. R. CIV. 

P. 41(a)(1)(A)(ii) AND N.D. CIV. L.R. 77-

2(c)

Hiett et al., 

Plaintiffs,

v.

MHN Government Services, Inc. et al., 

Defendants.

Case No. C 13-03016 SI 

Brown et al., 

Plaintiffs,

v.

MHN Government Services, Inc. et al., 

Defendants.

Case No. C 14-01449 RS 

SI

Case 3:13-cv-03016-SI Document 111 Filed 04/18/16 Page 2 of 7
STIPULATION OF DISMISSAL 

C 12-05109; C 13-03016; C 14-01449

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IT IS HEREBY STIPULATED AND AGREED, by and between the undersigned 

attorneys of record for Plaintiffs and Defendants MHN Government Services Inc., Health Net 

Inc., MHN Services, MHN Services Corporation, Managed Health Network, Inc. (“Defendants”) 

that Zaborowski, et al., v. MHN Government Services, Inc., et al., USDC, Northern District of 

California Case No. 12-05109, Hiett, et al., v. MHN Government Services, Inc., et al., USDC, 

Northern District of California Case No. 13-03016, and Brown, et al., v. MHN Government 

Services, Inc., et al., USDC, Northern District of California Case No. 14-01149, shall be 

dismissed with prejudice pursuant to Federal Rule of Civil Procedure 41(a)(2). 

I. BACKGROUND

On or about June 14, 2011, a lawsuit, Brown, et al. v. MHN Government Services, Inc., et 

al., Wash. Sup. Ct., Case No. 11-2-10229-2, was filed in Pierce County Superior Court in 

Washington State, in which plaintiffs asserted various violations of Washington state wage and 

hour laws (“Brown”). That lawsuit was later removed to the United States District Court for the 

Western District of Washington on February 27, 2015, and then transferred to this Court on 

March 25, 2015. On or about May 15, 2002, a lawsuit, Hiett, et al. v. MHN Government Services, 

Inc., et al., N.D. Cal. No. 3:13-cv-03016-SI, was filed in United States District Court for the 

Western District of Washington, alleging various violations of the FLSA (“Hiett”). That lawsuit 

was transferred to this Court on July 1, 2013. On or about July 22, 2014, a lawsuit, Zaborowski,

et al., v. MHN Government Services, Inc., et al., N.D. Cal. Case No. 3:12-cv-05109-SI, was filed 

in this Court, alleging various violations of the FLSA and California state wage and hour laws 

(“Zaborowski”). Zaborowski was later amended to assert various violations of other states’ wage 

and hour laws. Hiett was related to Zaborowski on or about September 9, 2013. Brown, Hiett

and Zaborowski are referred to collectively as the “Cases.” 

Case 3:13-cv-03016-SI Document 111 Filed 04/18/16 Page 3 of 7
- 4 - STIPULATION OF DISMISSAL

C 12-05109; C 13-03016; C 14-01449

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On or about November 1, 2012, Defendant filed a motion to compel arbitration in 

Zaborowski. This motion was denied by this Court and thereafter appealed by Defendant to the 

Ninth Circuit Court of Appeals, which affirmed this Court’s decision. Defendant thereafter filed 

a petition for certiorari with the United States Supreme Court (“SCOTUS”), which granted that 

petition on or about October 1, 2015. Hiett and Brown have been stayed pending the appeal in 

Zaborowski.

The Parties attended and participated in two private mediation sessions before Mark Rudy 

on January 20, 2014 and June 18, 2015. Following extensive additional negotiations under Mr. 

Rudy’s supervision, the Parties signed a Settlement Agreement. 

Pursuant to the terms of that Settlement Agreement, Plaintiffs in the Cases filed a claim in 

arbitration with JAMS on behalf of themselves and all allegedly similarly situated individuals (as 

also alleged in the Cases), to include all Covered Class Members (the “Action”). The Action 

sought adjudication of all the claims asserted in the Cases on behalf of all individuals covered by 

the Cases (i.e., the named Plaintiffs and all Opt-Ins) and all individuals potentially covered by the 

Cases (i.e., the members of the asserted but uncertified Rule 23 classes). The Parties stipulated to 

the appointment of the Honorable William J. Cahill (Ret.) of JAMS, who acted as the Arbitrator 

of the Action. On December 29, 2015, Plaintiffs filed a motion for preliminary approval of the 

settlement, which Judge Cahill heard on December 31, 2015. On January 4, 2016, Judge Cahill 

granted Plaintiffs’ motion for preliminary approval of the settlement, certifying a class for 

settlement purposes, which included all members of the putative classes alleged in the Cases. 

Judge Cahill then oversaw a scrupulous and conscientious settlement administration 

procedure utilized by the Parties to ensure a full and fair opportunity for all settlement class 

members to participate, object to or exclude themselves from the settlement. The Parties 

provided notice via U.S. mail and email of the settlement to all settlement class members through 

Case 3:13-cv-03016-SI Document 111 Filed 04/18/16 Page 4 of 7
- 5 - STIPULATION OF DISMISSAL

C 12-05109; C 13-03016; C 14-01449

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a third party settlement administrator and maintained a website through which settlement class 

members could file claims online and get information about the settlement. Settlement class 

members were given 30 days to object or opt out and 45 days to file claims. The settlement 

administration process also included reminders to all settlement class members who had not yet 

responded. The Parties worked collaboratively and diligently through each step in the settlement 

process in an effort to provide class members ample opportunity to participate in the settlement. 

These efforts results in a strongly positive response rate from participating class members. 

Class notices were sent to all 2,910 Covered Class Members. Of those, approximately 1,900 filed 

valid claim forms.1

 Notably, only nine Class Members opted out and not a single person 

submitted any objection (timely or untimely). On April 7, 2016, Judge Cahill granted Plaintiffs’ 

motions for final approval of the settlement. Judge Cahill noted at the final approval hearing that 

he is happy to answer any questions that the Court may have regarding the settlement process and 

substance.

Pursuant to the terms of the Settlement Agreement, the parties then dismissed the appeal 

(without prejudice) pending before SCOTUS, requesting that SCOTUS remand Zaborowski to 

this Court in light of the Parties’ settlement for dismissal with prejudice along with Hiett and 

Brown.

II. STIPULATION OF DISMISSAL WITH PREJUDICE 

The Parties have stipulated and agreed that the Cases against Defendants should be 

dismissed with prejudice and respectfully submit this Stipulation for approval by the Court for 

dismissal of the Cases with prejudice. 

If and when this Court dismisses the Cases with prejudice, the remaining steps of the 

settlement will be implemented. 

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 The deadline for 79 Class Members to submit claims forms will be April 18, 2016. 

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C 12-05109; C 13-03016; C 14-01449

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IT IS SO STIPULATED.

DATED: April 15, 2016 /s/ Allen R. Vaught 

Allen R. Vaught 

BARON & BUDD LLP 

Attorney for Plaintiffs 

DATED: April 15, 2016 /s/ Jahan C. Sagafi 

Jahan C. Sagafi 

OUTTEN & GOLDEN LLP 

Attorney for Plaintiffs 

DATED: April 15, 2016 /s/ Daniel M. Hutchinson

Daniel M. Hutchinson 

Lieff, Cabraser, Heimann & Bernstein LLP 

Attorney for Plaintiffs 

DATED: April 15, 2016 /s/ Warren Martin 

Warren Martin 

GORDON THOMAS HONEYWELL 

Attorney for Plaintiffs 

DATED: April 15, 2016 /s/ Richard Wooster 

Richard Wooster 

KRAM & WOOSTER LLP 

Attorney for Plaintiffs 

DATED: April 15, 2016 /s/ Timothy J. Long 

Timothy J. Long 

ORRICK, HERRINGTON & SUTCLIFFE 

LLP

Attorney for Defendants 

Case 3:13-cv-03016-SI Document 111 Filed 04/18/16 Page 6 of 7
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PURSUANT TO THE STIPULATION BETWEEN THE PARTIES, THE COURT HERBY 

DISMISSES Zaborowski, et al., v. MHN Government Services, Inc., et al., USDC, Northern 

District of California Case No. 12-05109, Hiett, et al., v. MHN Government Services, Inc., et 

al., USDC, Northern District of California Case No. 13-03016, and Brown, et al., v. MHN 

Government Services, Inc., et al., USDC, Northern District of California Case No. 14-01149 

WITH PREJUDICE. 

DATED: April __, 2016

HON. SUSAN ILLSTON 

UNITED STATES DISTRICT COURT 

JUDGE 

ATTESTATION

 I hereby attest that I have on file all holographic signatures corresponding to any 

signatures indicated by a conformed signature (/s/) within this e-filed document. 

/s/ Jahan C. Sagafi 

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Case 3:13-cv-03016-SI Document 111 Filed 04/18/16 Page 7 of 7