NOTICE OF PROPOSED CLASS ACTION SETTLEMENT. Berta Martin Del Campo v. Hometown Buffet, Inc., et al.

Transcription

1 NOTICE OF PROPOSED CLASS ACTION SETTLEMENT Berta Martin Del Campo v. Hometown Buffet, Inc., et al. United States District Court, Central District of California Case No. 2:14-cv (RGk) SHx THIS NOTICE MAY AFFECT YOUR LEGAL RIGHTS. PLEASE READ THIS NOTICE CAREFULLY. A court authorized this Notice. This is not a solicitation. This is not a lawsuit against you, and you are not being sued. However, your legal rights are affected whether you act or not. WHAT IS IN THIS NOTICE 1. Why should you read this Notice?... Page 1 2. What is the Lawsuit about?... Page 2 3. The Proposed Settlement... Page 2 4. What do I have to do in response to this Notice?... Page 3 5. How will my rights be affected?... Page 5 6. Who are the attorneys representing the Parties?... Page 6 7. How do I obtain additional information?... Page 6 1. Why should you read this notice? You received this Notice because your employment records indicate that you are eligible to receive a settlement payment as a Class Member under the proposed Settlement in the lawsuit titled Del Campo v. Hometown Buffet, Inc., et al., which is pending before the United States District Court for the Central District of California Court Case No. 2:14-cv (RGk) SHx (the Lawsuit ). Because your rights may be affected by the proposed Settlement whether you act or not, it is important that you carefully read this Notice. The Court in this Lawsuit ordered that this Notice be mailed to all Class Members to notify you of the proposed Settlement. This Notice does not express any opinion by the Court regarding the merits of any claims or defenses asserted by any party in the Lawsuit. Instead, this Notice was sent to you to inform you that this Lawsuit is pending and the terms of the proposed Settlement, so that you may make appropriate decisions. In the event that this Notice conflicts with the Settlement Agreement, the terms of the Settlement Agreement shall govern. The proposed Settlement will apply to all persons who meet the definition of the following Class: All current and former non-exempt, non-managerial employees employed by Hometown Buffet, Inc. and/or OCB Restaurant Company, LLC ( Defendants ) in California at any time between July 19, 2012 and March 31, 2015 (the Class Period ). According to the Defendants employment records, you are a member of the Class ( Class Member ) because you are or were employed by one or both of these companies as a non-exempt, non-managerial employee in California sometime between July 19, 2012 and March 31, Again, as a Class Member, you are eligible to receive a settlement payment under the proposed Settlement. Questions? Please Call: (866) Notice of Proposed Class Action Settlement 1

2 The parties have presented this Settlement to the Court for its review and approval. On September 15, 2015, the Court ordered that this Notice be provided to Class Members. The Court will decide whether to provide final approval to the Settlement at a court hearing scheduled for January 11, 2016 at 9:00 a.m., in Courtroom 850 of the United States District Court for the Central District of California, Western Division, which is located at the Edward R. Roybal Federal Building and United States Courthouse, 255 East Temple Street, Los Angeles, California, 90012, before the Honorable R. Gary Klausner (the Final Approval Hearing ). The Final Approval Hearing may be continued to another date, which will be posted on the Settlement Website at Notice of Final Approval and judgment will also be posted to the Settlement Website at 2. What is the Lawsuit about? The Lawsuit is a class action, meaning a lawsuit where the claims and rights of many people are decided in a single court proceeding. In this case, there is one named plaintiff, Ms. Berta Martin Del Campo ( Plaintiff ). The Plaintiff, individually and on behalf of all other similarly situated employees, filed a lawsuit against Defendants on March 11, 2014 in the Superior Court of California, County of Los Angeles, but the case was removed to the United States District Court for the Central District of California on June 1, 2015, where it was assigned to the Honorable R. Gary Klausner. The Lawsuit alleges that Defendants failed to provide employees with meal and rest breaks or pay them premium payments for missed meal and rest breaks, failed to reimburse employees for business expenses including mileage, failed to timely provide final wages upon resignation or termination, and failed to timely provide accurate itemized wage statements, in violation of the California Labor Code, the Industrial Welfare Commission s Wage Orders, California s Unfair Competition Law, and the California Private Attorney General Act ( PAGA ). Defendants deny these allegations and contend that they complied with the law. Despite their respective positions and arguments, the Parties recognize the risks of further litigation of the Lawsuit, which would be protracted and expensive for all Parties. Accordingly, the Parties have agreed to settle the Lawsuit, subject to Court approval, upon the terms set forth in the Joint Stipulation Re: Class Action Settlement and Release (the Stipulation or Settlement Agreement ). Defendants, by settling the Lawsuit, do not admit, concede or imply any fault, wrongdoing or liability. 3. The proposed Settlement In exchange for the release of claims against Defendants and final judgment in the Lawsuit, Defendants agreed to pay Two Million Dollars ($2,000,000) ( Maximum Settlement Fund ) plus employer-side payroll tax obligations. After payment of a Service Award to Plaintiff, a payment to the California Labor and Workforce Development Agency ( LDWA ), settlement administration costs, and attorney s fees and costs are deducted from the Maximum Settlement Fund, the remaining funds (the Net Settlement Fund ) will be distributed to Class Members who: (1) do not submit valid, timely Requests for Exclusion from the Settlement and (2) submit valid, timely Claim Forms (called Settlement Class Members ), as further explained below: A. Plaintiff s Service Award. The Class Counsel may ask the Court to authorize a Service Award of up to Five Thousand Dollars ($5,000) to Plaintiff for serving as a Class Representative. Plaintiff will also be entitled to receive her portion of the Settlement proceeds. B. Payment to the LDWA. Seven Thousand and Five Hundred Dollars ($7,500), will be paid to the LDWA. C. Settlement Administration Costs. The Settlement Administrator, CPT Group, will be paid no more than Fifty Six Thousand and Five Hundred Dollars ($56,500) for administering the proposed Settlement, which includes such tasks such as mailing and tracking this Notice, establishing and maintaining the Settlement Website, calculating Class Member individual settlement payments, mailing checks and tax forms, and reporting to the parties and the Court. Questions? Please Call: (866) Notice of Proposed Class Action Settlement 2

3 D. Class Counsel Attorney s Fees and Costs. You do not need to pay any portion of either Plaintiff s or Defendants attorney s fees and costs. Class Counsel will ask the Court to award attorney s fees up to Five Hundred Thousand Dollars ($500,000) or Twenty-Five percent (25%) of the Maximum Settlement Fund and a Cost Award of up to Twenty-Five Thousand Dollars ($25,000). E. Net Settlement Amount. The amounts described in Subparts A D, above, all will be paid from the Maximum Settlement Fund, and any amounts not approved by the Court will revert to the Net Settlement Fund for distribution to Settlement Class Members who timely submit valid claims. Subject to Court approval, distribution to Settlement Class Members will be as follows: Individual Settlement Payments to Settlement Class Members. The Settlement Administrator will determine the portion of the Net Settlement Fund to be paid to each Settlement Class Member by dividing the number of Compensable Workweeks for each Class Member by the total number of Compensable Workweeks for all Class Members during the Class Period ( Payment Ratio ). The term Compensable Workweeks simply means the number of weeks in which you worked for Defendants and were present for at least one shift during the Class Period, according to Defendant s payroll records. Each Settlement Class Member who submits a timely valid Claim Form will receive an Individual Settlement Payment equal to the Payment Ratio multiplied by the Net Settlement Fund, less all applicable taxes except employer-side payroll taxes to be paid by Defendants. Based on Defendants payroll records, there were approximately 513,318 Compensable Workweeks available at the time of the Notice mailing to be claimed by approximately 12,291 Class Members. An estimate of your Compensable Workweeks during the Class Period (between July 19, 2012 and March 31, 2015 ) and your estimated settlement amount, less all applicable taxes, can be found on your enclosed Claim Form. If you dispute this information, then you must mail in your dispute and supporting documentation to the Settlement Administrator by December 14, If you fail to timely dispute this information or timely submit supporting documentation, then your settlement payment will be based on Defendants records, which are presumed to be correct. The Individual Settlement Payment will be allocated as follows: thirty-three and one third percent (33.3%) as penalties; thirty-three and one third percent (33.3%) as interest; and thirty-three and one third percent (33.3%) as wages. This amount may increase or decrease depending on the Court s Orders and the number of Class Members who timely request exclusion from the Settlement. The check for your Individual Settlement Payment will be mailed by U.S. Mail at your last known mailing address within fourteen (14) days after twenty-nine (29) days of the Effective Date of the Settlement and will remain valid and negotiable for ninety (90) days from the date of issuance. After that time, any unclaimed checks will revert back to Defendants. 4. What do I have to do in response to this Notice? To participate in this Settlement and receive your share of the Net Settlement Fund, you must sign and return the enclosed Claim Form to the Settlement Administrator. You also have a right to request to be excluded from the Settlement completely, and the right to object to the Settlement. The option you choose affects whether you receive a settlement payment and whether you give up certain rights. The option you choose will in no way affect your employment with Defendants. Your options are listed below: Questions? Please Call: (866) Notice of Proposed Class Action Settlement 3

4 A. Participate in the Settlement. To participate in this Settlement and receive your share of the Net Settlement Fund, you must sign and return the Enclosed Claim Form to the Settlement Administrator either (1) by First Class or certified U.S. Mail post-marked no later than December 14, 2015, or (2) by facsimile or by no later than December 14, 2015 to: Tel: (866) / Fax: (949) / HometownBuffetSettlement@cptgroup.com B. If you submit a Claim Form, please retain proof of mailing or fax or , or call the Settlement Administrator to make sure your Claim Form was received. If you need another Claim Form, please contact the Settlement Administrator. C. Object to the Settlement. If you wish to object to the proposed Settlement Agreement, Class Counsel s requested attorney s fees and costs, and/or Plaintiff s requested service award, then you must return a written statement of objection ( Notice of Objection ) to the Settlement Administrator either (1) by First Class or certified U.S. Mail post-marked no later than December 14, 2015, or (2) by facsimile or by no later than December 14, 2015 to: Tel: (866) / Fax: (949) / HometownBuffetSettlement@cptgroup.com To be valid, a Notice of Objection must be postmarked or ed/faxed on or before December 14, 2015 and must contain: (1) the full name, address, telephone number and the last four digits of the Social Security number of the Class Member objecting to the Settlement; (2) his or her dates of employment; (3) his or her job title(s) and job location(s); (4) a statement of objections; (5) a statement advising if the objecting Class Member plans to address the Court at the Final Approval Hearing, and any legal briefs, papers or memoranda that the objecting Class Member proposes to submit to the Court. The date of the postmark on the return mailing envelope, or the date of the fax or transmission to the Settlement Administrator shall be the exclusive means used to determine whether an objection was timely submitted. If you fail to make objections in the manner specified above then you will be deemed to have waived any objections and will be foreclosed from making any objection (whether by appeal or otherwise) to the Settlement. If you have submitted a valid and timely Notice of Objection, then you have the right to address the Court at the Final Approval Hearing scheduled for January 11, 2016 at 9:00 a.m., in Courtroom 850 of the United States District Court for the Central District of California, Western Division, which is located at the Edward R. Roybal Federal Building and United States Courthouse, 255 East Temple Street, Los Angeles, California, 90012, before the Honorable R. Gary Klausner. Class Members who object to the Settlement do not need to attend the Final Approval hearing in order for their objections to be considered by the Court. However, only members of the Class who have submitted valid and timely Notices of Objection will be entitled to be heard at the Final Approval Hearing, unless the Court orders otherwise. You have the right to retain your own attorney, at your own expense, to submit an objection or appear on your behalf at the Final Approval Hearing. You may both object to the Settlement and participate in it. Filing an objection will not exclude you from the Settlement. If you wish to be excluded from the Settlement, then you must follow the procedure below. D. Exclude yourself from the Settlement. If you wish to exclude yourself from this proposed Settlement, you must submit a written request to the Settlement Administrator to be excluded from the Settlement Questions? Please Call: (866) Notice of Proposed Class Action Settlement 4

5 either (1) by First Class or certified U.S. Mail post-marked no later than December 14, 2015, or (2) by facsimile or by no later than December 14, 2015 to: Tel: (866) / Fax: (949) / HometownBuffetSettlement@cptgroup.com To be valid, a request for exclusion must: (1) contain the name, address, telephone number and the last four digits of the Social Security number of the Class Member requesting exclusion; (2) be signed by the Class Member requesting exclusion; and (3) be postmarked or on or before the December 14, The date of the postmark on the return mailing envelope, or the date of the fax or transmission to the Settlement Administrator, shall be the exclusive means used to determine whether a request for exclusion has been timely submitted. Any Class Member who requests an exclusion from the Class will not be entitled to any recovery under the Settlement and will not be bound by the Settlement or have any right to object to or appeal the Settlement. Unless you timely request to be excluded from the Settlement, you will be bound by the judgment upon final approval of the Settlement, including the Release described in this Notice. 5. How will my rights be affected? If the proposed Settlement is approved by the Court, Plaintiffs and every member of the Class who does not timely opt out by timely submitting a valid Request for Exclusion to the Settlement Administrator under the procedures set forth above ( Settlement Class Member ) will release Defendants and their past, present and/or future, direct and/or indirect, parent companies, subsidiaries, affiliates, divisions, officers, directors, managers, members, heirs, employees, agents, representatives, attorneys, insurers, partners, investors, shareholders, predecessors, successors, and/or assigns from the Released Claims, which include any and all claims asserted in the Action against the Released Parties, or that could have been asserted against the Released Parties based upon the facts alleged in the First Amended Class Action Complaint filed in the Action by Plaintiff or any Settlement Class Member from July 19, 2012 to March 31, The Released Claims include, but are not limited to, any and all claims for (i) alleged failure to provide meal and rest breaks in violation of California Labor Code 226.7, 516, and 558, (ii) alleged failure to reimburse employees for necessary business expenditures in violation of California Labor Section 2802 and 2804, (iii) alleged violations of California Labor Code including, but not limited to, failure to pay final wages timely, or pay penalties for untimely final wages; (iv) alleged violations of California Labor Code 226(a) for failure to provide accurate wage statements; (v) alleged violation of California Business and Professions Code et seq. based on underlying violations of the California Labor Code identified herein at (i) through (iv), and (v) alleged violations of California Labor Code 2698 et seq. based on derivative violations of the Labor Code including, but not limited to, Labor Code 201, 202, 203, 204, 226, 226.7, 512, 2802, and The Released Claims also include all claims for interest and/or penalties of any kind or nature arising out of or relating to the Released Claims and further extends to and includes claims for damages, civil penalties, restitution, injunctive relief, declaratory relief, punitive damages, and any other form of relief or remedy. The Released Claims also include all claims Plaintiff and Settlement Class Members may have against the Released Parties relating to (i) the payment and allocation of attorneys fees and costs to Class Counsel pursuant to this Agreement and (ii) the payment of the Class Representative Enhancement Award pursuant to this Agreement. It is the intent of the Parties that the judgment entered by the Court upon final approval of the Settlement shall have res judicata effect and be final and binding upon Plaintiff and all Settlement Class Members regarding all of the Released Claims, whether or not the Settlement Class Members submit Claim Forms. For the sake of clarity, the Released Claims include only those claims that meet the definition of Released Claims. As such, for example, Released Claims do not include claims for wrongful termination, unlawful harassment, or Worker s Compensation. Nor does this release constitute a blanket waiver of all claims, potential or actual, known or unknown for violations of California s Labor Code and Wage Orders by current and former employees of Defendants. Questions? Please Call: (866) Notice of Proposed Class Action Settlement 5

6 The Released Claims include any claims as discussed herein that the Plaintiff and Settlement Class Members do not know or suspect to exist in their favor at the time of the release that do arise, or could have arisen, out of the claims alleged in the Lawsuit, which, if known by them, might have affected their settlement with, and release of, the Released Parties or might have affected their decision not to object to this Settlement. 6. Who are the attorneys representing the parties? Attorneys for Plaintiff & the Class Are:: Raymond P. Boucher, Esq. Shehnaz M. Bhujwala, Esq. Brandon K. Brouillette, Esq. BOUCHER LLP Oxnard Street, Suite 600 Woodland Hills, CA Tel: (818) / Fax: (818) s: ray@boucher.la; bhujwala@boucher.la; brouillette@boucher.la Attorneys for Defendants Are: Allison C. Eckstrom, Esq. OGLETREE, DEAKINS, NASH, SMOAK & STEWART, P.C. 695 Town Center Drive, Suite 1500 Costa Mesa, CA Telephone: Facsimile: allison.eckstrom@ogletreedeakins.com Sahag Majarian II, Esq. LAW OFFICES OF SAHAG MAJARIAN II Ventura Boulevard Tarzana, CA Tel.: (818) / Fax: (818) SahagII@aol.com 7. How do I obtain additional information? This Notice only summarizes the class action lawsuits, the Settlement and related matters. For more information, you may inspect the relevant Court files on the Settlement Website at: You may also call Class Counsel Brandon Brouillette ( ) or him at brouillette@boucher.la. You may also contact the Settlement Administrator and ask about the Hometown Buffet, Inc. Settlement: Tel: (866) / Fax: (949) / HometownBuffetSettlement@cptgroup.com PLEASE DO NOT TELEPHONE THE COURT FOR INFORMATION ABOUT THIS SETTLEMENT. PLEASE DO NOT CONTACT DEFENDANTS CORPORATE OFFICE, MANAGERS, OR ATTORNEYS FOR INFORMATION ABOUT THIS SETTLEMENT. Dated: October 14, 2015 Questions? Please Call: (866) Notice of Proposed Class Action Settlement 6