Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_16-cv-02471/USCOURTS-casd-3_16-cv-02471-0/pdf.json

Nature of Suit Code: 790
Nature of Suit: Other Labor Litigation
Cause of Action: 28:1332lr Diversity - Labor

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16-CV-2471-WQH-BLM

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

HAYES, Judge:

Plaintiffs Ricardo Martin and Nick Morgan (“Plaintiffs”), on behalf of themselves 

and the proposed Settlement Class, have filed an unopposed motion asking the Court to: 

(a) grant preliminary approval of the Stipulation and Agreement of Compromise and 

Class Settlement (“Settlement” or “Settlement Agreement”) entered into by and between 

Plaintiffs and Defendants Legacy Supply Chain Services II, Inc. and PrimePath, LLC 

(“Defendants”); (b) requesting the Court set a deadline for Plaintiffs to file their Motion 

for Approval of Class Counsel’s Attorneys’ Fees and Costs, and Class Representative 

Enhancement Payments; and (c) requesting the Court set a final approval hearing to 

determine the fairness of the Settlement. 

RICARDO MARTIN, an 

individual; and NICK MORGAN, 

an individual; on behalf of 

themselves and all others 

similarly situated,

 Plaintiffs,

v. 

LEGACY SUPPLY CHAIN 

SERVICES II, INC., an Indiana 

Corporation; PrimePath, LLC, a 

Florida Corporation; and DOES 1 

through 100, inclusive,

 Defendants.

Case No. 3:16-cv-02471-WQH-BLM

CLASS ACTION

 ORDER 

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The Court has considered the Parties’ Settlement Agreement, along with Plaintiffs’ 

unopposed Motion for Preliminary Approval of the Settlement Agreement and the 

Memorandum of Points and Authorities, Declaration of Christopher A. Olsen, 

Declaration of Ricardo Martin, Declaration of Nick Morgan, and other documents filed 

in support thereof, and finds good cause for issuing an Order preliminarily approving the 

Parties’ Settlement.

NOW THEREFORE, IT IS HEREBY ORDERED:

1. The Court GRANTS the request for Preliminary Approval of the Class Action 

Settlement. All defined terms contained herein shall have the same meanings as set forth 

in the Settlement.

2. Pursuant to Rule 23(e) of the Federal Rules of Civil Procedure, the Court GRANTS 

the Parties’ request for certification of the following Rule 23 Settlement Class for the sole 

and limited purpose of implementing the terms of the Settlement Agreement, subject to 

this Court’s final approval:

All persons, or each of them, currently or formerly employed by 

Defendants, or Defendants’ predecessors, in the State of California as 

hourly, non-exempt employees during the time frame of October 3, 2012 

through the date the Court grants preliminary approval of this Settlement 

Agreement. 

3. The Court recognizes that certification under this Order is for settlement purposes

only, and shall not constitute or be construed as an admission by Defendants that this 

action is appropriate for class treatment for litigation purposes. Entry of this Order is 

without prejudice to the rights of Defendants to oppose certification of a class in this 

action should the proposed settlement not be granted final approval.

4. The Court appoints and designates: (a) Plaintiffs Ricardo Martin and Nick Morgan 

as the Class Representatives, and (b) the firm of Olsen Law Offices, APC as Class 

Counsel for the Class. Class Counsel is authorized to act on behalf of the Class with 

respect to all acts or consents required by, or which may be given, pursuant to the 

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Settlement, and such other acts necessary to finalize the Settlement Agreement and its 

terms. Any Settlement Class Member may opt out of the Settlement and enter an 

appearance through his or his own counsel at such Class Member’s own expense. Any

Settlement Class Member who does not opt out will be represented by Class Counsel.

5. The Court hereby approves the terms provided for in the Settlement, finding them 

to be fair, adequate, and reasonable and in the best interests of the Settlement Class 

Members.

6. The Court hereby preliminarily approves the Settlement and the Maximum 

Settlement Amount of $625,000.00, with the Net Settlement Amount being calculated by 

subtracting the following from the Maximum Settlement Amount: (1) Class Counsel’s 

attorneys’ fees (not to exceed 33.33% of the Maximum Settlement Amount or 

$206,250.00); (2) Class Counsel’s Costs (not to exceed $10,000.00); (3) Class 

Representative Enhancement Payments to be paid to Representatives Ricardo Martin and 

Nick Morgan (not to exceed $5,000 per class representative); (4) $10,000.00 to be 

allocated to claimed PAGA penalties with 75% (or $7,500.00) to be paid to the California 

LWDA and with 25% (or $2,500.00) going into the Net Settlement Amount; and (5) the 

Claims Administration Costs to the Claims Administrator, Phoenix Settlement 

Administrators, Inc., not to exceed $20,000.00. The Net Settlement Amount remaining 

for paying Individual Settlement Payments to the Participating Class Members is 

anticipated to be approximately $371,250.00. The Court further preliminarily approves 

the formulas provided in the Settlement for calculating Individual Settlement Payments, 

and the Opt-Out Deadline of May 11, 2018. Additionally, Defendants’ employer share 

of payroll taxes (e.g. UI, ETT, Social Security and Medicare taxes) on Individual 

Settlement Payments paid to the Participating Class Members will be deducted from the 

Net Settlement Amount.

7. The Court finds on a preliminary basis that the Settlement, including the Class 

Representative Enhancement Payment, Class Counsel Fees and Costs, the Claims 

Administration Costs and the proposed allocation of Individual Settlement Payments to 

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Participating Class Members, appears to be within the range of reasonableness of a 

settlement that could ultimately be given final approval by this Court. It appears to the 

Court on a preliminary basis that the Settlement is fair, adequate and reasonable as to all 

potential Settlement Class Members when balanced against the probable outcome of 

further litigation relating to certification, liability and damages issues. It also appears that 

extensive investigation, research and Court proceedings have been conducted so that 

counsels for the Parties have been able to reasonably evaluate their respective positions. 

It appears to the Court that settlement at this time will avoid substantial additional costs 

by all Parties, as well as avoid the delay and risks that would be presented by the further 

prosecution of this Action. It also appears that settlement has been reached because of 

intensive, serious, and non-collusive arms-length negotiations, including a full-day 

mediation with a third-party neutral.

8. A final approval hearing shall be held before this Court on July 13, 2018 in 

Courtroom 14B of the United States District Court, Southern District of California, at 

10:00 a.m. to determine all necessary matters concerning the Settlement, including 

whether the proposed Settlement of the Action on the terms and conditions provided for 

in the Settlement are fair, adequate and reasonable and should be finally approved by the 

Court and whether a Judgment should be entered herein. At that time, a hearing on Class 

Counsel’s Motion for Attorneys’ Fees and Costs and the Class Representative’s 

Enhancement Payment shall also be held.

9. The Court hereby approves, as to form and content, the Notice of Class Action 

Settlement (“Notice Packet”) to be sent to Settlement Class Members, which is attached 

as Exhibits A to the Settlement Agreement. The Court finds that distribution of the Notice 

Packets to the Settlement Class Members substantially in the manner and form set forth 

in the Settlement is the best notice practicable under the circumstances and meets the 

requirements of due process, and shall constitute due and sufficient notice to all parties 

entitled thereto. The documents to be sent to all Settlement Class Members in the Notice 

Packet are deemed sufficient to inform Settlement Class Members of the terms of the

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Settlement, their rights under the Settlement, their rights to object to or comment on the 

settlement, their right to receive an Individual Settlement Payment without having to take 

any action, their right to exclude themselves and not participate in the Settlement, and the 

processes for doing so, and the date and location of the Final Approval Hearing, and the 

Notice Packet documents are therefore approved.

10. The Court appoints and designates Phoenix Settlement Administrators as the thirdparty Claims Administrator. The Court hereby directs the Claims Administrator to

provide the approved Notice Packet documents to Settlement Class Members and

administer the Settlement in accordance with the procedures set forth in the Settlement 

herein, including in conformance with the schedule set forth below.

11. Any Settlement Class Member may choose to opt out of and be excluded from the 

Settlement as provided in the Settlement and Notice of Class Action Settlement and by 

following the instructions for requesting exclusion. Any person who timely and properly 

excludes themselves from the Settlement will not be bound by it or have any right to 

object, appeal or comment thereon. Any Request for Exclusion must be signed by each 

such Settlement Class Member and comply with the requirements for exclusion set forth 

in the Settlement. Settlement Class Members who have not timely submitted a Requested 

for Exclusion shall be bound by all determinations of the Court, the Settlement and the 

Judgment. If both an opt-out and an objection are received from the same Settlement Class 

Member, the Class Member will be deemed to have opted out.

12. Pursuant to Federal Rule of Civil Procedure 23(e) (5), members of the Settlement 

Class may object to the terms of the settlement. Settlement Class Members who object to 

the proposed Settlement may appear and present such objections at the Final Approval 

Hearing in person or by counsel, provided that any objecting Settlement Class Member 

submit a written statement containing the basis of that person’s objections, together with 

a notice of the intention to appear, if appropriate, which must be sent to the Claims 

Administrator and postmarked no later than forty-five (45) calendar days from the date 

on which the Notices are first sent out by the Claims Administrator. No person shall be 

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heard at the Final Approval Hearing, and no briefs or papers shall be received or 

considered, unless the foregoing documents have been filed and served as provided in this 

Order, except as this Court may permit for good cause shown.

13. The motion for final approval of the Settlement and Awarding Administration 

Costs shall be filed by May 25, 2018. Class Counsel shall also file by May 25, 2018 the 

Final Approval Hearing its Motion for Attorneys’ Fees and Costs and Class 

Representative Enhancement Payment, to be heard concurrently with the Final Approval 

Hearing.

14. Upon Final Approval and completion of the Claims Administration process, all 

Class Members who have not submitted timely Requests for Exclusion and the Class 

Representatives will be deemed to have forever released and discharged the Released 

Claims applicable to them and waived their rights under California Civil Code § 1542 for 

the applicable Released Claims, as set forth and defined in the preliminarily approved 

Settlement Agreement.

15. The Court reserves the right to change or otherwise continue or advance the date 

of the Final Approval Hearing and all dates provided for in the Settlement without further 

notice to the Class, and retains jurisdiction to consider further applications concerning the 

Stipulation.

16. The Court orders the following schedule of dates and administration milestones 

for the specified actions and further proceedings in this matter as agreed under the terms 

of the Settlement:

Event Date

Last day for Defendants to provide Claims Administrator the 

Class List

March 9, 2018

Notice-last day for Claims Administrator to mail the Notice 

Packet to Class Members

March 23, 2018

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Last day for Settlement Class to submit a timely signed Request 

for Exclusion

May 11, 2018

Last day for Settlement Class to timely submit Objections May 11, 2018

Last day to file Motion for Approval of Class Counsel’s 

Attorneys’ Fees and Costs, and Class Representative 

Enhancement Payment

April 27, 2018

Last day to file Motion for Final Approval of Class Action 

Settlement

May 25, 2018

Final Approval Hearing July 13, 2018 at 

10:00 a.m.

IT IS SO ORDERED.

Dated: February 12, 2018

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