Filed 7/2/15 Anaya v. QuickT rim CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS
California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). Thi s opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE
STATE OF CALIFORNIA

TERESA ANAYA et al ., Plaintiffs and Respondents,

v. QUICKTRIM, LLC et al ., Defendants and Respondents; SANDRA MONSALVE, Objector and Appellant. D067432

(Super. Ct. No. CIVVS1201177)

APPEAL from a judgment of the Superior Court of San Bernardino County, Bryan F. Foster, Judge. Affirmed. Bursor & Fisher, Scott A. Bursor, L. Timothy Fisher, Annick M. Persinger and Julia A. Luster, for Objector and Appellant Sandra Monsalve. Kabateck Brown Kellner, Brian S. Kabateck, Richard L. Kellner and Lina Melidonian for Plaintiffs and Respondents Teresa Anaya et al.2

Posner Law Corporation, Ashley D. Posner; Nagel Rice, Bruce Nagel and Diane E. Sammons for Defendants and Respondents Quicktrim, LLC et al.
INTRODUCTION Teresa Anaya filed a class action against QuickTrim, LLC and others (collectively QuickTrim), alleging QuickTrim ' s product label ing and packaging improperly claimed QuickTrim ' s products had weight loss benefits. The trial court subsequently approved a settlement agreement providing for injunctive relief and requiring QuickTrim to reimburse class members a portion of their purchase price or provide them with coupons redeemable for future product purchases. T he trial court also awarded class counsel $ 250,000 in attorney fees and costs

. Class member and objector Sandra Monsalve appeals, contending the tri al court abused its discretion in approving the settlement because the class did not receive
sufficient notice of or adequate relief from the settlement. 1 She additionally contends the trial court abused its discretion by awarding excessive attorney fees to class counsel

. We disagree with these contentions and affirm the judgment
BACKGROUND In December 2010 class counsel, while representing a different plaintiff, sent QuickTrim a letter alleging QuickTrim violated the California Consumer s Legal

1 Mon salve is also a class member in a competing federal class action. (See Cowan, et al. v. Windmill Health Products, LLC, et al. (S.D.N.Y. 2012, No. 1:12

- cv - 01541) ( Cowan action).)3

Remedie s Act (Civ. Code, § 1750 et seq.) (CLRA) . The letter demand ed QuickTrim provide refunds to the plaintiff and others like her for their product purchases. Upon receiving the letter, QuickTrim contacted class counsel and initiated settlement disc ussions. For more than a year, the parties engaged in informal discovery and ongoing, but unsuccessful , settlement negotiations. During this time, class counsel determined Anaya would be a more suitable class representative. In March 2012 Monsalve ' s counsel filed the Cowan action. (See fn. 1, ante .) Six days later Anaya filed the instant class action, alleging violation s of the CLRA , Unfair Competition L aw (Bus. & Prof. Code, § 17200 et seq. ), False Advertising Law (Bus. & Prof. Code, § 17500 , et seq. ) and other state law claims. The action was filed on behalf of all United States residents who purchased certain QuickTrim products for personal use during the preceding four years

. In May 2012 Anaya filed a first amended complaint adding a cause of action for vio lation of the federal Magnuson

- Moss Warranty Act (15 U.S.C., § 2301 et seq.) and broadening the class definition to include all United States residents who " purchased the QuickTrim Weight Loss System or any of its component products for personal use. " Mea nwhile, the parties continued their settlement efforts and, with the assistance of a respected, retired jurist serving as mediator, reached a preliminary settlement. In October 2012 after the parties finalized their settlement agreement, Ana y a filed

a mot ion seeking preliminary approval of the settlement

. (See Cal. Rules of Court, rule 3.769(c).) She concurrently sought approval to file a second amended complaint adding4

numerous defendants and claims. The settlement was intended to dispose of all claims nationwide , effectively extinguishing the Cowan action. The settlement provided that class members who purchase d QuickTrim products direct ly from QuickTrim would automatically receive refund s of 50 percent of the products ' purchase price or, at their e lection, coupon s redeemable for double the products ' purchase price. Class members who purchased Q uickTrim products from a retail store and who had proof of purchase would receive refund s of 50 percent of the products ' purchase price or coupon s redeemable for the products ' purchase price. Class members who purchased QuickTrim products from a retail store , but did not have proof of purchase , would receive refund s of 25 percent of the products ' purchase price up to the amount of two products or coupon s rede emable for up to 35 percent of the purchase price of two products, not to exceed $42. The settlement additionally required QuickTrim to redesign its labeling and packaging to restate the nature of its products and their benefits. The settlement f

urther r equired class counsel to apply for an award of attorney fees, not to exceed $250,000

. QuickTrim agreed not to oppose the application

. Monsalve objected to preliminary approval of the proposed settlement on multiple grounds , including the sufficiency of the plan for noticing class members of the settlement and the adequacy of the proposed settlement. After requiring improvements to the noticing plan, t he court granted preliminary approv al of the proposed settlement over Monsalve ' s objection s . Afte r receiving preliminary approval of the settlement, QuickTrim created a settlement Web site containing a list of frequently asked questions, a detailed class5

not ic e, a claim form, the settlement agreement, and the preliminary approval order. QuickTrim the n provide d notice of the settlement through multiple avenues directed at people with demographic profiles similar to likely class members

. The avenues included those used by QuickTrim to advertise its products. Specifically, QuickTrim sent a press releas e to 4,200 print and broadcast outlets and 5,500 online press outlets through the United States, including the Associated Press. It placed print ads in In Touch, Life & Style, US Weekly, National Enquirer, Globe, Shape, Star, and OK! Magazine , which had

a combined readership of 53,108,000 people. It placed television ads on several cable television networks, including Bravo, Food Network, Travel, Oxygen, BET, Oprah Winfrey Network, Soap, TBS, USA, and Women ' s Entertainment. It placed digital ads on Faceb ook , Google, Yahoo, Bing, and other s earch portals and Web sites, including its

own . Finally, it sent e

- mail ads to over 8 million people. QuickTrim ' s noticing efforts produced over 1.4 million hits to the settlement Web site and 15,895 class member cla ims. Of the 4,583 claimants who purchased directly from QuickTrim, 19 requested coupons and the remainder automatically received compensation. Of the 6 9 claimants who purchased from a retailer and had proof of purchase, one requested a coupon and the rem ainder requested compensation. Of the
11 , 243 claimants who purchased from a retailer and did not have proof of purchase, 1,159 requested coupons and the remainder requested compensation. The combined estimated value of the claims was $247,484.68.
In Jul y 2013 Anaya moved for final approval of the settlement agreement . She concurrently moved for an award of $250,000 in attorney fees and costs to class counsel.6

Monsalve o bjected to final approval of the settlement on essentially the same grounds she obje cted to preliminary approval of it

. She also argued the settlement release was overly broad and the settlement appeared to be the product of a reverse auction. She opposed the attorney fee s motion on the ground the requested fees were exce ssive.
Ove r Monsalve ' s objections, t he trial court granted final approval of the settlement , finding the settlement was reached through arm ' s length negotiations, the investigation was sufficient to evaluate the class claims, the settlement was adequate, class couns el had the requisite experience to represent the class, Monsalve was the only class member who objected to the settlement, and there were questions as to the strength and ability to prove the class claims . I n a later proceeding , after requiring further

su bstantiation of class counsel ' s work on the case, the trial court awarded class counsel $250,000 in combined attorney fees and costs.
DISCUSSION

" In general, questions whether a settlement was fair and reasonable, whether notice to the class was adequate, whether certification of the class was proper, and whether the attorney fee award was proper are matters addressed to the trial court ' s broad discretion. [Citation.] Our review is therefore limited to a determination whether the record shows ' a clear ab use of discretion. ' [Citation.] Our task is not to determine in the first instance whether the settlement was reasonable or whether certification was appropriate. We determine only whether the trial court acted within its discretion in making the ruling s that it did. " ( Wershba v. Apple Computer, Inc. (2001) 91 Cal.App.4th 224, 234

- 235 ( Wershba ) ; Cho v. Seagate Technology Holdings, Inc. (2009) 1777

Cal.App.4th 734, 743 ( Cho ) .) However, " [t] o the extent that it appears the trial court ' s decision was based on improper criteria or rests upon erroneous legal assumptions, these are questions of law war ranting our independent review. " ( Wershba , at p. 235.)
I Class Notice Monsalve contends the notice to the class members was insufficient because it failed to r each most of the class. As support for this contention, she notes only a small percentage of potential class members became claimants. She also asserts the noticing plan did not require individual notice to potential class members identifiable from retai ler records ; the noticing plan did not comply with Civil Code section 1781, subdivision (d) ; and the noticing plan did not fully comply with rule 3.766(d)(3)

- (5) of the California Rules of Court.
A
T rial court management of a class action is governed by California Rules of Court, rule 3.760 et seq. W hen a class action settles, these rules require that " notice of the final approval hearing must be given to the class members in the manner specified by the court. The notice must contain an explanation of the proposed settlement and procedures for class members to follow in filing written objections to it and in arranging to appear at the settlement hearing and state any objections to the proposed settlement. " (Cal. Rules of Court, rule 3.769(f).)

" The trial court ' " has virtually complete discretion as to the manner of giving notice to class members. " ' " ( Cellphone Termination Fee Cases (2010) 186 Cal.App.4th8

1380, 1390 ( Cellphone ) .) " In determining the manner of the notice, the court must consider: [¶] (1) The interests of the class; [¶] (2) The type of relief requested; [¶] (3) The stake of the individual class members; [¶] (4) The cost of notifying class members; [¶] (5) The resources of the parties; [¶] (6) The possible prejudice to class members who do not receive notice; and [¶] (7) The res judicata effect on class members. " (Cal. Rules of Court, rule 3.766(e).) We review the trial court ' s determination for abuse of discretion. ( Cellphone , supra , at p. 1390

. ) " The standard is whether the noti ce has ' a reasonable chance of reaching a substantial percentage of the class members. ' " ( Wershba , supra , 91 Cal.App.4th at p. 251.)
B
1 QuickTrim ' s claims administrator estimated there were several hundred thousand potential class members. As describe d above, QuickTrim utilized multiple means to reach these potential class members, including individual notice to direct purchasers as well as demographically targeted print ads, digital ads, social media ads, television ads, and e

- mails

. Based on QuickTr im ' s noticing plan and the claims administrator ' s past experience handling similar class actions , the claims administrator estimated it would receiv e 6,000 claims. QuickTrim ' s noticing plan produced results far in excess of these expectations and far in e xcess of the results produced in other similar class action s handled by the claims administrator. Although Monsalve is unsatisfied with the claims rate and regards it as proof of the noticing plan ' s insufficiency, she has not directly challenge d the claim s administrator ' s evidence or produce d any countervailing evidence9

of what would be a reasonabl e claims rate for this type of class action. She, therefore, has not established any inadequacy in the noticing plan based on the claims rate.
2 Monsalve addit ionally faults the court for not requiring QuickTrim to search
retailer records for potential class members to whom individual notice could be sent. However, the court was not obliged to do this. " If personal notification is unreasonably expensive or the stake of individual class members is insubstantial, or if it appears that all members of the class cannot be notified personally , the court may order a means of notice reasonably calculated to apprise the class members of the pendency of the action

 for

ex ample, publication in a newspaper or magazine; broadcasting on television, radio, or the Internet; or posting or distribution through a trade or professional association, union, or public interest group. " (Cal. Rules of Court, rule 3.766(f); see Cho , supr a , 177 Cal.App.4th at p. 746 [when it is unnecessary or infeasible to personally notify all potential class members of an action, the court may require notice by other means reasonably calculated to apprise the class members of the action ' s pendency].)
3 The court ' s failure to require newspaper publication under Civil Code section 1781, subdivision (d), also did not render the notice to the class members insufficient. This code section provides: " I f [a consumer action under the CLRA ] is permitted as a cl ass action, the court may direct either party to notify each member of the class of the action. The party required to serve notice may , with the consent of the court, if personal notification is unreasonably expensive or it appears that all members of the class cannot10

be notified personally, give notice as prescribed herein by publication in accordance with Section 6064 of the Government Code in a newspaper of general circulation in the county in which the transaction occurred. " ( Civ. Code, § 1781, subd. (d) , italics added .) On its face, this code section is permissive, rather than mandatory. It authorizes a court to permit publication notice in specified circumstances , but it does not require publication notice in those circumstances nor does it preclud e other forms of notice in those circumstances.
4 The fact QuickTrim ' s publication, retail, and e

- mail ads did not ful ly compl y with the California Rules of Court ' s content requirements also did not render notice to the class insufficient

. The California Rules of Court generally require cl ass notice to include

" [a] procedure for the member to follow in requesting exclusion from the class , " " [a] statement that the judgment, whether favorable or not, will bind all members who do not request exclusion, " and " [a] statement that any member who does not request exclusion may, if the member so desires, enter an appearance through counsel. " (Cal. Rules of Court, rule 3.766(d)(3)

- (5).) However, the trial court had the discretion to grant relief from compliance wi th these requirements. (Cal. Rules of Court, rule 3.760(b).) In addition, the publication, retail, and e

- mail ads referred potential class members to the
settlement Web site, which Monsalve acknowledges had a fully compliant notice. Appellate courts hav e previously sanctioned this two

- step process of using a summary notice to direct potential class members to a Web site containing a more detailed notice. (See Cellphone , supra , 186 Cal.App.4th at p p . 13 91

- 139 2; Chavez v. Netflix, Inc. (2008)11

162 Cal.Ap.4 th 43, 58.) Using the Internet ' s capability in this manner is a sensible and efficient way to provide class notice

. Moreover, " [w] e do not look for perfection. ' [A] large body of case law reflect[s] the view that " the whole concept of a large class

- acti on might easily be stultified by insistence upon perfection in actual notice to class

members

. " ' " ( Cellphone , supra , at p. 1392.) 5 Lastly, the absence of evidence the retailer s actually displayed the class notices they received d oes not , by itself, es tablish the class notice was insufficient. As described above, QuickTrim ' s notic ing pro gram was multifaceted and the record contains substantial evidence the program as a whole achieved its purpose . I I Class Settlement
A
1 Monsalve next contends the tria l court erred in approving the settlement because the court had insufficient evidence to independently assess the case ' s strengths and weaknesses and the settlement does not provide adequate relief to the class. " The trial court has broad discretion to de termine whether a class action settlement is fair. It should consider factors such as the strength of plaintiffs ' case; the risk, expense, complexity and likely duration of further litigation; the risk of maintaining class action status through trial; the amount offered in settlement; the extent of discovery completed and the stage of the proceedings; the experience and views of counsel; the presence of a governmental12

participant; and the reaction of the class members to the proposed settlement. [Citation s.] But the ' list of factors is not exclusive and the court is free to engage in a balancing and weighing of factors depending on the circumstances of each case. [Citation.] ' [Citation.] In sum, the trial court must determine that the settlement was no t the product of fraud, overreaching or collusion, and that the settlement is fair, reasonable and adequate to all concerned. [Citation.]

" The burden is on the proponent of the settlement to show that it is fair and reasonable. [Citation.] However, the re is a presumption of fairness when (1) the settlement is reached through arm ' s - length bargaining; (2) investigation and discovery are sufficient to allow counsel and the trial court to act intelligently; (3) counsel is experienced in similar litigation; and (4) the percentage of objectors is small. " ( Reed v. United Teachers Los Angeles (2012) 208 Cal.App.4th 322, 336

- 337.)
2
T he presumption of fairness applies in this case because the record shows the settlement was reached through arm ' s length barg aini ng with the assistance of a respected, retired jurist serving as mediator; class counsel has the requisite experience ; and the percentage of objectors was small. T he record also shows there was sufficient investigation and discovery to allow counsel and t he court to act intelligent ly

. At base, this case is about whether QuickTrim ' s labeling and packaging misrepresented its products ' efficacy for weight loss. The record before the court at the time it finally approved the settlement includ e d general inf ormation about the parties ' respective litigation positions, QuickTrim ' s products, thei r average cost , and the number13

of products sold during the class period. The record also includes examples of the challenged labeling and packaging

. Coupled with Anaya ' s second amended complain t , th i s information was sufficient to enable the court to balance the strength of the class claims against the settlement amount offered , and to satisfy itself the settlement amount

was " within the ' ballpark ' of reasonableness. " ( Kullar v. Foot Locker Retail, Inc. (2008) 168 Cal.App.4th 116, 130, 133.) The court was not required to conduct " ' the detailed and thorough investigation that it would undertake if it were actually trying the case

. ' " ( Id. at p. 130.) The court was on ly required to " receive and consider enough information about the nature and magnitude of the claims being settle d , as well as the impediments to recovery, to make an independent assessment of the reasonableness of the terms to which the parties have agree d. " ( Id . at p. 133.) Notwithstanding the presumption of fairness, Monsalve contends the settlement is inadequate because its cash value is less than $100,000 and its other components, coupons and injunctive relief, are worthless . Even if we accept her valuation of the settlement and its components , which Anaya and QuickTrim strongly contest , a settlement is not required to meet a minimum dollar or percentage threshold to be deemed adequate. Rather, the ade quacy of a settlement amount is evaluated in l ight of litigation uncertainties and class expectat ions. Both favor the adequacy of the settlement in this

case . L itigation of the case would be ris ky and expensive as QuickTrim had multiple viable defenses

. Conversely, the class members ' individual d amages w ould be small because of the products ' relatively low price points

. No class member opted out of the14

settl e ment and o nly one class member, Monsalve, objected to it , indicat ing the class as a whole is satisfied with it. In addition, t he record bel ies any assertion coupons formed an excessive part of the settlement as 90 percent of the claimants opted for cash, rather than
coupons. Accordingly , we cannot conclude the settlement is outside the ballpark of
reasonableness

. B Relying exclusively on Tr otsky v. Los Angeles Fed. Sav. & Loan Assn. (1975) 48 Cal.App.3d 134 ( Trotsky ), Monsalve also contends the court abused its discretion in approving the settlement because the settlement included an overly broad release intended to extinguish the Cowan acti on. (See fn. 1, ante .) Trotsky , however, is factually distinguishable.
In Trotsky , the appellate court reversed a judgment approving a class action settlement because the settlement encompassed a class claim not shared by the named plaintiffs n or asse rted in the operative class action complaint. ( Trotsky , supra , 48 Cal.App.3d at p p . 145, 153

- 154.) The apparent purpose of including the claim in the settlement was to foreclose another pending class action. ( Id. at p. 149.) The appellate court conclud ed the settlement was invalid as to the claim because the named plaintiffs

were not a ppropriate representatives for the claim. The appellate court additionally concluded a class action settlement may not release a claim beyond the scope of the class actio n complaint. ( Id. at pp. 146

- 147.) The appellate court was also concerned the trial court approved the settlement without full knowledge of the facts because the parties15

failed to inform the trial court of the other class action before the approval heari ng. ( Id. at pp. 149

- 150.) None of these circumstances is present in this case. The operative class complaint encompassed all of the released claims, Monsalve does not assert Anaya is an inadequate representative for the released claims, and the trial co urt was well

- aware of the Cowan action before finall y approv ing the settlement. Anaya disclosed the Cowan action in her case management statement, which she filed before the court heard her motion for preliminary approval of the settlement. In addition, the preliminary and final approval of the settlement were delayed while Monsalve attempted to remove this case and have it
transferred to the federal court handling the Cowan action. 2 As Trotsk y , supra , 48 Cal.App.3d 134 has no application here, Monsalve has not established the court abused its discretion by failing to follow Trotsky and disapprove the settlement as overly broad.
C Monsalve further contends the trial court abused its discretion in approving the settlement because it resulted from a revers e auction. A reverse auction occur s when the defendant in a series of class actions chooses to negotiate a settlement with the most ineffectual class lawyers in the hope the trial court will approve a weak settlement that preclude s other claims against th e defendant. ( Negrete v. Allianz Life Ins. Co. (9th Cir. 2008) 523 F.3d 1091, 1099.) The settlement of one class action during the pendency of

2 We grant QuickTrim's opposed motion for judicial notice of the federal c ourt records related to the attempted removal and transfer solely for procedural history purposes. (Evid. Code, §§ 452, subd. (c), 459, subd. (a).)16

another parallel class action is not a sufficient b asis for concluding a reverse auction took place. ( Id. at p p. 1099

- 1100.) Generally, there must be concrete evidence of collusion, such as a bidding war. ( Gallucci v. Gonzales (9th Cir. Feb. 24, 2015, No. 12

- 57081) 2015 U.S. App. LEXIS 2949; Rutter & Wilbanks Corp. v. Shell Oil Co. (10th Cir. 2002) 314 F.3d 1180 , 1189.) There is no concrete evidence of a bidding war or other forms of collusion in this case. To the contrary, the evidence shows the settlement was the product of lengthy negotiations aided by the efforts of a respected, retired jurist serving as a mediator. Accordingly, Monsalve has not established the trial court abused its discretion by failing to disapprove the settlement on this ground.
II I Attorney Fees Award Monsalve contends the trial court abused its discretion in award ing attorney fees

an d costs of $250,000 because the award is grossly disproportionate to the class ' s
recovery. " Because of the potential for fraud, collusion or unfairness, thorough judicial review of fee applications is required in all class action settlements and the fairn ess of the fees must be assessed independently of determining the fairness of the substantive settlement terms. " ( In re Consumer Privacy Cases (2009) 175 Cal.App.4th 545, 555.)

" [T]he ' " experienced trial judge is the best judge of the value of professio nal services rendered in his court, and while his judgment is of course subject to review, it will not be disturbed unless the appellate court is convinced that it is clearly wrong. " ' [Citations.] For this reason ' [o]ur review of the amount of attorney fees awarded is deferential. ' [Citations.] We apply an abuse of discretion standard. [Citation.] Fees approved by the17

trial court are presumed to be reasonable, and the objectors must show error in the award. " ( I

d. a p. 556.)

" ' " ' [T]he primary met hod for establishing the amount of " reasonable " attorney fees is the lodestar method. The lodestar (or touchstone) is produced by multiplying the number of hours reasonably expended by counsel by a reasonable hourly rate. Once the court has fixed the lod estar, it may increase or decrease that amount by applying a positive or negative " m ultiplier " to take into account a variety of other factors, including the quality of the representation, the novelty and complexity of the issues, the results obtained, and the contingent risk presented. ' [Citation.] ' The purpose of such adjustment is to fix a fee at the fair market value for the particular action. In effect, the court determines, retrospectively, whether the litigation involved a contingent risk or requi red extraordinary legal skill justifying augmentation of the unadorned lodestar in order to approximate the fair market rate for such services. ' " ' " ( Consumer Privacy Cases , supra , 175 Cal.App.4th at p. 556 .) In this case, Monsalve does not identify a ny particular flaw in the trial court ' s application of the lodestar method . Rather, Monsalve challenges the amount of the attorney fees award because she does not believe class counsel could have worked more than 500 hours on the case based on the results counsel achieved . Notwithstanding Monsalve ' s skepticism , the record includes declarations from class counsel detailing the time spent and tasks performed by each of counsel ' s staff members from the inception to the conclusion of the case in the trial cou rt. Monsalve does not point to any deficiencies18

in any of the declarations and, c ollectively, t he y provide s ubstantial evidence to support
the amount of the fee award. 3 Monsalve also challenges the fee award because it was the subject of a " ' clear sail ing ' " provision in the settlement agreement, under which QuickTrim agreed not to object to an attorney fees award up to $250,000. (See Cellphone , supra , 180 Cal.App.4th at p. 1120; Consumer Privacy Cases , supra , 175 Cal. A pp.4th at p. 552.) However, "

' c lear sailing ' " provisions are common in class action settlement agreements and are not im proper under California law. ( Consumer Privacy Cases , supra , at p. 553.) Thus, the existence of the " clear sailing " provision in the settlement agreement does not p rovide a sufficient basis for reversing the attorney fee s award. ( See Cho , supra , 177 Cal.App.4th at p. 744.)
DISPOSITION The judgment is affirmed. Respondents are awarded their appeal costs.

M C CONNELL, P. J.
WE CONCUR: BENKE, J. NARES, J.

3 We need not address Monsalve's alternative arguments regarding the percentage of the benefit method of c alculating attorney fees as there was no common fund in this case and the record does not show the trial court used this method.