Cody Parker vs The Clary Group LLC et al

Case Number

22CV00417

Case Type

Hearing Date / Time

Mon, 10/06/2025 - 10:00

Nature of Proceedings

Hearing re Final Approval of Class Action Settlement

Tentative Ruling

Cody Parker v. The Clary Group, L.L.C., et al.                 

Case No. 22CV00417

           

Hearing Date: October 6, 2025                                                           

HEARING:              Final Approval Of Class Action Settlement

ATTORNEYS:        For Plaintiff Cody Parker: Jonathan Melmed, Kyle D. Smith, Melmed Law Group P.C.

For Defendant The Clary Group, L.L.C.: Douglas J. Farmer, Allison J. Fernandez, Ogletree, Deakins, Nash, Smoak & Stewart, P.C.

For Defendant JBS Energy Solutions California LLC: David D. Cardone, Bradley A. Lebow, Adam J. Yarbrough, Dunn DeSantis Walt & Kendrick

TENTATIVE RULING:

The final approval hearing is continued to January 26, 2025. On or before January 16, 2025, plaintiff shall file and serve a supplemental report, which may be submitted in the form of a declaration by an authorized representative of settlement administrator ILYM Group, Inc., regarding the status of efforts to finalize the settlement at issue.

Background:

On October 28, 2022, plaintiff Cody Parker filed his operative second amended complaint (the SAC) against defendants The Clary Group, L.L.C. (Clary Group), and JBS Energy Solutions California LLC (JBS) (collectively, defendants), alleging ten causes of action: (1) failure to provide rest periods and pay missed rest period premiums; (2) failure to provide meal periods and pay missed meal period premiums; (3) failure to pay all wages earned and unpaid at separation; (4) failure to indemnify all necessary business expenditures; (5) failure to furnish accurate itemized wage statements; (6) violations of California’s Unfair Competition Law; (7) violations of Labor Code section 970; (8) wrongful termination; (9) whistleblower retaliation; and (10) penalties pursuant to Labor Code section 2698 et seq. (the Private Attorneys General Act of 2004 or PAGA). As alleged in the SAC:

Plaintiff brings this action on behalf of himself and a class of individuals who are or were employed by defendants as non-exempt employees from four years prior to the filing of the action. (SAC, ¶¶ 2-4 & 14.) Plaintiff also alleges a claim under PAGA on behalf of aggrieved individuals who are or were employed by defendants from February 1, 2021, to the present. (Id. at ¶¶ 5-7 & 16.)

Clary Group is a labor contracting company that placed plaintiff to work running an excavator and other construction equipment at JBS. (SAC, ¶ 17, 25, 27.) Though Clary Group is listed on plaintiff’s paystubs, plaintiff was employed by both Clary Group and by JBS. (Id. at ¶¶ 18, 19.) During the time periods alleged in the complaint, defendants failed to provide rest and meal periods, to pay wages earned and unpaid at separation, to indemnify employees for necessary business expenditures, to furnish itemized wage statements, and violated Business and Professions Code section 17200 et seq. (Id. at ¶ 4.)

On November 29, 2022, JBS answered the SAC by generally denying its allegations and asserting twenty-nine affirmative defenses, and filed a cross-complaint for indemnity and contribution against Clary Group.

On March 6, 2023, Clary Group filed an answer to the SAC generally denying its allegations and asserting thirty-eight affirmative defenses.

On March 11, 2024, after a hearing, the Court granted plaintiff’s motion for preliminary approval of a class action settlement (the Settlement), and preliminarily approved a non-reversionary gross settlement amount of $177,500 (the gross settlement amount) to settle and release all claims asserted by plaintiff on behalf of a class of individuals employed by defendants as non-exempt employees from February 1, 2018, through October 18, 2023, and with respect to the PAGA claims, individuals employed by defendants from February 1, 2021, through October 18, 2023. The court also appointed ILYM Group, Inc. (ILYM) as the settlement administrator, and approved the notice to be provided and distributed to the class members.

The Court set a hearing for final approval of the class action settlement on August 5, 2024, which was continued to October 7, 2024, pursuant to a stipulation of the parties.

On September 13, 2024, plaintiff filed an unopposed motion (the final approval motion) for an order finally and for purposes of settlement: certifying the settlement class as defined in the settlement agreement; approving plaintiff (Cody Parker) as class representative; appointing Jonathan Melmed (Melmed) and Kyle D. Smith (Smith) of Melmed Law Group P.C. (the Melmed Group) as class counsel; finding that the notice of the settlement was properly provided to the class members in accordance with the Court’s preliminary order; approving the settlement as fair, adequate, and reasonable, based upon the terms set forth in the settlement agreement including the payment by defendants of the gross settlement amount plus the employer’s portion of applicable payroll taxes; and approving the allocation for attorneys’ fees of one-third of the gross settlement amount ($59,166.67), plus necessary litigation costs of $7,164.52.

Pursuant to a minute order entered on October 7, 2024, (the October Order), the Court granted, in part, the final approval motion. For reasons further discussed in the October Order, the Court continued the final approval motion as to plaintiff’s request for an award of attorney’s fees and costs to December 16, 2024, and directed plaintiff to, on or before December 2, 2024, file and serve a supplemental brief addressing the overall reasonableness of the attorney’s fees sought by plaintiff in light of the issues, questions, and concerns raised by the Court in the October Order.

On December 2, 2024, plaintiff filed a supplemental declaration of Smith.

On December 16, 2024, after the continued hearing described above, the court entered a minute order (the December Order), granting the final approval motion as to plaintiff’s request for an award of attorney's fees in the amount of $59,166.67, and costs in the amount of $7,164.52. Pursuant to the December Order, the Court set a hearing re final approval for October 6, 2025.

On September 12, 2025, plaintiff filed a declaration of Nick Castro, who is the Case Manager for ILYM. (Castro Decl., ¶ 1.) Castro states that the total amount received pursuant to the Settlement is $180,791.88, which includes the gross settlement amount of $177,500 and Clary Group’s share of applicable payroll taxes in the amount of $3,291.88. (Castro Decl., ¶ 3.)

Castro provides the following breakdown of payments to be made from the amount received as described above: (1) the amount of $82,918.81 for individual settlement awards to 159 participating class members; (2) the amount of $2,500.00 for payment of 25 percent of civil penalties under PAGA to 131 PAGA members; (3) the amount of $59,166.67 for payment of attorney fees; (4) the amount of $7,164.52 for payment of expenses; (5) the amount of $10,000 to plaintiff as a class representative payment; (6) the amount of $8,250 for administration fees to ILYM; (7) the amount of $7,500 to the California Labor & Workforce Development Agency (the LWDA), for its 75 percent share of civil penalties under PAGA; and (8) the amount of $3,291.88 for the payment of the employer’s portion of applicable payroll taxes on the “wages” portion of the individual settlement awards. (Castro Decl., ¶ 3.)

Information appearing in the Castro declaration shows that payment of amounts approved by the court for attorney’s fees, litigation expenses, administration expenses to ILYM, the LWDA’s share of civil penalties under PAGA, plaintiff’s class representative service award, and applicable federal and state payroll taxes, has been completed. (Castro Decl., ¶¶ 4-8 & 10-11.)

Castro further states that on June 2, 2025, ILYM issued and mailed settlement award checks to participating class and PAGA members, with the net amount totaling $79,208.19, and $6,210.62 having been withheld for the employees’ share of the applicable payroll taxes. (Castro Decl., ¶ 9.) Of the settlement checks issued, 49 remain uncashed, in the total amount of $22,463.98. (Castro Decl., ¶ 13.) The deadline for participating class and PAGA members to cash the settlement checks is November 29, 2025. (Castro Decl., ¶ 12.)

Analysis:

For all reasons discussed above, the present record reflects that the deadline for the participating settlement class members to cash the settlement checks that were issued on June 2, 2025, has not passed. Therefore, the court will continue the hearing regarding final approval of the Settlement to January 26, 2025. On or before January 16, 2025, plaintiff shall file and serve a supplemental report, which may be submitted in the form of a declaration, regarding the status of ILYM’s efforts to finalize the Settlement.