Nurses Call for Approval for $40M+ Settlement in Putative Class Action

In a putative consolidated class action alleging St. Joseph’s Healthcare System acted in violation of the federal Employee Retirement Income Security Act, counsel for the plaintiffs called for approval on a settlement in excess of $40 million. Counsel noted that a related high court ruling set their case back. When seeking preliminary approval, plaintiffs stated that St. Joseph’s already put $45 million towards an employee pension plan as a part of the proposed deal. This is $2.5 million more than is required by according to tentative agreements between parties.

The plaintiffs’ motion for preliminary approval is unopposed and the completed payment represents half of the agreed upon funding. The plan is designed to offer relief to the class members and remove the uncertainty of litigation while addressing the original concern of improving the retirement security for plan participants/class members.

Plaintiffs in the case allege that St. Joseph’s denied ERISA protections to plan participants and beneficiaries of their pension plan and that they did so by incorrectly claiming the plan was exempt under ERISA due to claims that it was actually a church plan. Central to plaintiff arguments against this line of reasoning is that a church plan must be established by a church in order to legally qualify for this level of exemption.

On June 5th, a Supreme Court opinion extended ERISA’s religious exemption to include benefit plans that are maintained by church affiliates. This decision overturned a number of federal circuit court rulings maintaining that this particular exemption could only be applicable when the benefit plan was established by the church itself. The decision also effectively negated the plaintiffs’ main argument that only a church established plan can qualify as a “church plan” for ERISA.

The plaintiff case included additional arguments, but it cannot be argued that the June 5th Supreme Court opinion negatively affected the decision on the case. Due to this, the settlement is particularly favorable for the proposed class. The ruling was handed down after parties in the St. Joseph’s case had already negotiated settlement terms and memorialized key terms of the proposed agreement.

According to the Proposed Settlement Terms:

·       Accrued benefits will be paid over a seven-year period.

·       Summary plan descriptions will be provided.

·       Pension benefit statements will be provided.

·       Other certain protections similar to ERISA provisions will be included.

If you need to discuss an ERISA violation, please get in touch with one of the experienced California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.
 

ERISA Fee Class Action Does Not Look Favorably on Edison International

Edison International was recently round liable for breaching its fiduciary obligations in accordance with the Employee Retirement Income Security Act (ERISA) after a suit from works alleged the energy utility company used unnecessarily expensive retirement plans. Damages come close to $8 million.

Edison International was found liable for the actual loss due to excessive fees paid in a suit from a class of Midwest Generation LLC employees. The company is an LLC of Edison International unit Edison Mission Group Inc. Workers alleged that the company chose 17 different mutual funds in connection with the workers’ 401(k) plan, but that all of them were more expensive “retail class” fund shares instead of the wholesale “institutional class” shares that come at a significantly lower cost to investors.

The judge found that any prudent fiduciary should have invested in wholesale “institutional class” shares instead of the more expensive “retail class” fund shares. Edison argued that they had the right to choose the higher cost shares offering revenue sharing – which helps to significantly offset administration fees paid by the company – because the company provided notification to the plan participants of the availability of revenue sharing.

The judge did not find the company’s argument viable, stating that no prudent fiduciary would purposefully choose to invest in more expensive retail shares based on speculative fear that higher administrative costs may be reallocated to plan participants.

The decision in the case followed 10 years of litigation. On the 10th anniversary of the lawsuit’s filing, the court ruled in favor of the plaintiffs, allowing them to receive damages in accordance with the suggested formula.

If you need to discuss ERISA and how it applies to your retirement income, please get in touch with one of the experienced California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

Colgate Retirees Alleging Benefit Denial Receive Class Certification

A class of former Colgate-Palmolive Co. brought denial of benefits claims in an ERISA action. Their suit was filed in June 2016 following an earlier ERISA case that included allegations that Colgate miscalculated retirement benefits. The June 2016 suit resulted in a $45.9 million settlement.

In July 2017, a New York federal judge approved class certification. The certification of the class of former workers essentially shut down the company’s arguments stating that a former employee is not an adequate representative for a class that is seeking resolution on an additional benefits case.

Allegedly, Colgate miscalculated pension benefits for retirees under their “residual annuity amendment” the standard retirement plan/policy. The amendment was generated to correct an error that failed to provide beneficiaries with specific benefits when lump sum payments were taken out. The complaint alleges that Colgate didn’t address those payments until it was included in a previous Employee Retirement Income Security Act action.

The judge’s 15-page decision stated that the plaintiffs met all the requirements for certification (in accordance with Rule 23(a)). Colgate’s challenge to the putative class was based on typicality and adequacy requirements. No arguments were made regarding numerosity or commonality. Colgate specifically claims that plaintiff Rebecca McCutcheon is not an adequate representative because she defers to legal counsel. The judge did not find the argument persuasive enough due to the highly technical nature of the case at hand. McCutcheon, who is not a lawyer, would obviously have difficulty providing answers to questions about claims in the case. She exhibited a general understanding of the case and a general desire to be a “watchdog” for the proposed class in seeking corrections to calculations. The judge felt this was sufficient in fulfilling the adequacy requirements.

Colgate also stated that McCutcheon was atypical of the class and that claims being made were barred by the 180-day contractual limitations period as defined in the retirement plan. The judge disagreed. He found that the limitations period was unenforceable due to the omission from a denial latter Colgate issued in 2014 in reference to an administrative claim for benefits and the letter’s explicit statement that she had a year to file suit regarding the matter. As the judge found that the limitations period does not apply in regard to McCutcheon’s claim, the argument does not currently define McCutcheon as atypical.

The judge granted class certification and appointed McCutcheon class representative as well as naming counsel. The proposed class includes approximately 1,200 members and applies to specific subcategories of retirees that received lump sum payments from their retirement plan and who are still due additional benefits from the company.

According to the suit, Colgate agreed to provide a residual annuity benefit in 2005 that would provide a residual annuity benefit to workers for close to a decade. When the company started to pay the benefit out, they distributed it to some plan participants and not others. They also failed to provide the benefit to certain plan participants (like McCutcheon) who had already received lump sum payments of their benefits – even when they requested payment.

If you need to discuss alleged retirement benefit denial or if you are due retirement benefits you are not receiving, please get in touch with one of the experienced California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

Peet’s Coffee Allegedly Violates California’s Automatic Renewal Law

In July 2017, a San Francisco judge rejected Peet’s Coffee’s attempt to put an end to a putative class action. The California class action alleges that Peet’s violated California’s Automatic Renewal Law due to improper notification of customers regarding the automatic renewal of coffee and tea subscriptions. The judge rejected Peet’s Coffee’s findings that the class members could not provide evidence of an injury.

It was argued that allegations against Peet’s Coffee could not stand due to the inclusion of legally required disclosures on the company’s website and due to the class’s failure to state an injury in accordance with the Unfair Competition Law claim requirements. After hearing the arguments, Judge Karnow found both to be factually disputed. He stated that the ARL claim was pled sufficiently and that the class’s injury was the fact that a lack of proper disclosure left plaintiffs that had not consented to pay for services. Without consent for payment, the coffee may be considered a gift and the “price” charged for it is the injury.

Due to the facts of the case, the judge found that motion for summary judgment or a quick bench trial would be the best way to handle the case.

The class includes California Peet’s Coffee customers who purchased subscriptions after February 2013. Allegations state that Peet’s did not comply with California state law because they did not provide “clear and conspicuous” disclosures and did not provide notification prior to every additional charge. Allegedly, the checkout page for the Peet’s subscription service did not include the appropriate notifications regarding automatic renewal.

Class members seek recovery of the money paid for recurring products because they can be defined as “unconditional gifts” under California state law.

Legal counsel for Peet’s Coffee argues that the plaintiffs’ allegations are full of conclusory allegations regarding conspicuous disclosure and that the complaint itself stated that Eduardo Leon Castillo, plaintiff, selected a different coffee blend, then cancelled the subscription service. There is no mention in the complaint that the subscription was difficult to cancel, only that the plaintiff cancelled when he wanted to cancel and made purchases according to his own wishes. Peet’s attorney pointed out that Castillo’s ordering of the coffee was proof that it wasn’t “unsolicited.”

The judge responded that if the info presented was accurate, then Peet’s would come out the victor, but that it didn’t warrant an argument that the members didn’t have standing to bring the case to court.

Castillo’s attorney responded to Peet’s arguments by stating that according to California state law, Eduardo’s state of mind is not relevant to the case. According to the law, it doesn’t matter if the plaintiff knew or not – it matters if the disclosure requirements were met.

If you have questions or concerns about California’s Automatic Renewal Law, please get in touch with one of the experienced California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

Shell Oil Faces Sexual Harassment Claims

Ciara Newton worked at Shell as a refinery process operator. She was hired in January 2016. As an employee at Shell Oil’s refinery in Martinez, she alleges that she experienced sex-based harassment, sex discrimination and a failure on the company’s part to take appropriate action to prevent both discrimination and harassment.

In the complaint, the former Shell employee alleges that she experienced all of the above at the hands of both supervisors and co-workers on the job – all because of her gender.

In the lawsuit, Newton describes a male-dominated work setting where co-workers made negative and disparaging comments about women in the workplace and in which supervisors undermined Newton instead of supporting her. In fact, Newton alleges that supervisors on the job at Shell Oil actively complained about women in the workplace.

Some instances of sex-based discrimination and harassment that Newton allegedly suffered include:

• Finding a sticker on her desk that read, “If your (vagina) hurts, just stay home.”
• A supervisor stating that women do not last long in “his department.”
• A failure to receive a response after reporting the situation/s to Human Resources.

Newton is also suing Shell for wrongful termination. She alleges that the company retaliated against her because she complained about the sexual harassment and discrimination on the job. She feels the retaliation may have also been partly in response to her desire to properly document and contain a sulfuric acid spill at the refinery. When she attempted to do so, a supervisor told her to stop so he and others would not get “in trouble” for not reporting it.

In September 2015, Shell terminated Newton stating that she had unsatisfactory performance during her probationary period. This was only six days after a supervisor gave her a positive progress report and encouraged her to continue forward in her job at the company.

If you have experienced sexual harassment or discrimination in the workplace, please get in touch with one of the experienced California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

After Winning an Emmy, Anchor Karla Amezola Prepares for Wrongful Termination Suit Battle

Karla Amezola recently won her 1st Emmy award for the special series, “Atrapados en la frontera.” The series is about the plight of Haitian refugees trapped in Tijuana on their way to seek asylum in the United States. The refugees left their own country after the 2010 earthquake to work in Brazil for the Olympics and World Cup. Later they made their way through Mexico towards the United States where they planned to seek asylum. Amezola was up against 5 other nominees from Univision, KTLA and NBC.

Amezola sees the Emmy as an excellent reminder of how much she loves journalism. And it couldn’t have come at a better time because she is having a very difficult moment in her career. While an anchor at LBI Media’s Estrella TV, Amezola filed a sexual harassment complaint with Human Resources in 2016 against her boss at the time, Andres Angulo, VP of News. This led to her filing a lawsuit alleging that the company did nothing to curb the illegal behavior. Only months after filing the lawsuit, she was fired.

Amezola has been driving for Uber and Lyft since June to make a living, although she has also been actively applying for jobs in her chosen field. Se hopes that her lawsuit against Angulo and Estrella TV can move forward. There have been a number of delays that her legal counsel suggests are company stalling tactics. Amezola’s attorney feels that the company probably hopes the delays will result in the public forgetting about the allegations and that the plaintiff’s resolve will falter.

The original complaint was for sexual harassment, but it has since been refilled to add wrongful termination and seeks $15 million in damages.

If you feel you have experienced wrongful termination, please get in touch with the experienced California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

Petaluma Poultry Facing Lawsuit

The Petaluma Poultry lawsuit seeks class action status. The lawsuit was filed against Petaluma Poultry and its parent company based on allegations the company violated a number of different wage and labor laws throughout the previous four years of their business practices.

The original complaint was filed June 9, 2017 in Sonoma County Superior Court on behalf of employees, both former and current, asserting that they were not paid overtime wages. Plaintiffs assert that the company, Petaluma Poultry, failed to pay overtime and compensate their workforce for the time they spent changing out of protective gear when their shifts were completed. Additional claims allege that the poultry company did not provide their employees with the required 30-minute meal breaks. They also claim that when required meal breaks were missed (or not provided) that the company did not provide the employees with compensation.

Each individual violation can be considered “small” on its own. But when taken as a whole and applied across the entire population of Petaluma Poultry workers, they had a significant effect over time. Plaintiffs’ legal counsel notes that this is the exact situation that is well suited for class action procedure.

The original complaint was filed on behalf of Angelica Gutierrez. Gutierrez worked in Petaluma’s production department at the processing plant from 2011 through 2016. During that time, 200 or more workers may have been impacted by the alleged violations.

The lawsuit seeks unpaid compensation on behalf of employees who worked overtime and missed meal breaks, etc. It also seeks penalties, damages and attorneys’ fees as is standard. The plaintiff brought the suit against the poultry company in order to protect her rights as an employee as well as to protect the rights of her co-workers in accordance with the California labor code.

In addition to Petaluma Poultry, the lawsuit also names Delaware-based Coleman Natural Foods and Maryland-based Perdue Foods, owner of both Petaluma and Coleman. The spokesman for the companies declined to comment, as litigation is pending. Although the spokesman did reference Perdue Foods’ statement on wages and working conditions posted on the company website.

The statement posted on the company’s website reads, “We continue to comply with all applicable wage and hour laws and regulations, including those related to minimum wage, overtime compensation, piece rates, and any/all legally mandated benefits. Further we ensure all associates work within the limits of regular and overtime hours. Where overtime is required, those associates are normally granted at least one day off in every seven-day period.”

There are 563 workers employed by Petaluma Poultry. The majority of the workers are hourly and unionized.

If you have trouble obtaining your overtime compensation or if you work overtime without receiving overtime compensation, please get in touch with one of the experienced California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.