Jurimatic: Verdicts and Settlements

Gerardo Gutierrez filed a class action lawsuit against Fraiche Catering, Inc. in San Francisco Superior Court, alleging widespread violations of California labor laws. The complaint, filed on behalf of approximately 100 similarly situated employees, claimed the catering company misclassified workers as exempt to avoid paying overtime and minimum wages. Further allegations included the failure to provide mandated meal and rest periods, failure to reimburse employees for business expenses such as personal cell phone use, and the issuance of inaccurate wage statements. Fraiche Catering denied all allegations, asserting that employees were properly classified under California's Professional, Administrative, and Executive exemptions. The case concluded with a $175,000 settlement to resolve the claims.

In a decisive intellectual property ruling, a federal jury awarded Sonate Corporation (d/b/a Vegadelphia) approximately $39 million after finding Beyond Meat willfully infringed on its registered trademark. The dispute centered on Beyond Meat's "Great Taste Plant-Based" national advertising campaign, which the jury found to be confusingly similar to Vegadelphia's long-standing slogan "Where Great Taste is Plant-Based." The verdict included significant awards for both actual damages and the disgorgement of profits.

Eric Harrold sued Spartan Education Group, an aeronautics and technology college in Riverside, California, for widespread wage and hour violations. The class action alleged the company failed to pay minimum and overtime wages, denied meal and rest breaks, issued inaccurate pay statements, and refused to reimburse workers for using personal cell phones. The case settled for $400,000.

Daniel Matthews filed a class action lawsuit against Lusk Quality Machine Products alleging the California manufacturer violated state labor laws by failing to pay minimum wages, denying meal and rest breaks, requiring off-the-clock work, and providing inaccurate wage statements. The case settled for $365,000, compensating affected non-exempt employees for wage theft and labor code violations during their employment at the CNC machining facility.

Vernon Barnett filed a class action lawsuit against QW Insurance Solutions, LLC, LendingTree, Inc., and LendingTree, LLC in San Diego Superior Court, alleging systematic wage and hour violations affecting non-exempt employees. The complaint claimed the defendants failed to pay proper overtime by excluding commissions from rate calculations, denied compliant meal and rest breaks, issued inaccurate wage statements, and failed to reimburse work-from-home expenses. After intensive negotiations, the parties reached a $450,000 settlement that received preliminary court approval on March 22, 2024.

The Orange County Superior Court resolved the medical malpractice lawsuit of Tanisha R. Jackett and Kelvin Jackett v. The Regents of the University of California with a final, negotiated settlement of $550,000. The suit centered on the negligent care Mrs. Jackett received during a complex, nearly twenty-hour Deep Inferior Epigastric Perforator (DIEP) flap procedure at the University of California Irvine Medical Center in October 2020. The Plaintiffs alleged that the medical staff failed to meet the proper standard of care, arguing that improper positioning during the lengthy surgery caused serious, lasting injury. This negligence resulted in Mrs. Jackett suffering from severe headaches, eventually diagnosed as occipital neuralgia, along with hair loss and persistent swelling, injuries she continued to suffer from. Her husband, Kelvin Jackett, sought damages for loss of consortium, as his wife's injuries had severely disrupted their marital relationship. The Regents of the University of California denied the claims, raising defenses that invoked California's MICRA laws, which cap non-economic damages at $250,000 for medical negligence. Despite the strong defense, the parties ultimately negotiated the six-figure settlement, which the Court approved, bringing the high-stakes personal injury case to a conclusion before a jury trial.

The Sacramento County Superior Court finalized a significant labor and employment case, Naveen Prasad v. RCG Logistics LLC, with a total settlement of $552,795. The lawsuit, brought as a class action, centered on RCG Logistics' systematic failure to comply with California’s strict labor laws, specifically regarding pay calculation and workplace accommodation. The primary financial claims revolved around the company’s practice of paying employees incentive commission payments (ICPs) without incorporating them into the "regular rate of pay." This failure resulted in the underpayment of overtime, sick leave, and meal and rest period premiums for the entire class. The plaintiff further asserted the company denied workers proper meal and rest breaks, and failed to reimburse them for business-related cell phone expenses. Beyond the class claims, Mr. Prasad included individual claims of disability discrimination and retaliation under the Fair Employment and Housing Act (FEHA). He alleged that after he requested a reasonable accommodation for his Autism Spectrum Disorder (auditory sensitivity), a manager refused to maintain the necessary accommodation and the company terminated him shortly thereafter. Although RCG Logistics denied all wrongdoing, the parties ultimately negotiated the six-figure settlement, which the court approved, bringing the high-stakes litigation to a close.

The San Diego Superior Court concluded a major labor dispute, Natasha Le v. Independent Options, Inc., which centered on systematic violations of California's strict wage and hour laws. Plaintiff Natasha Le brought the lawsuit as a class action and a Private Attorneys General Act (PAGA) claim, asserting that the company had failed to provide legally mandated meal and rest periods to a large group of employees. The core claims alleged that Independent Options, Inc. had neglected to ensure employees received their full, uninterrupted 30-minute meal breaks and 10-minute rest periods, resulting in unpaid premium wages. Further allegations included the company's failure to provide accurate wage statements and its refusal to reimburse workers for necessary business expenses, such as the use of personal phones for work. The plaintiff's counsel, Capstone Law APC, contended that these practices constituted willful wage theft and unfair business practices. Independent Options, Inc. denied the allegations, asserting that it had complied with all applicable labor codes. However, before the case proceeded to trial, the parties reached a negotiated settlement. In August 2024, Judge Blake K. Bowman approved the final settlement agreement, which required the defendant to pay a total of $750,000 to resolve all claims from the class members and the state (for PAGA penalties). The final judgment represented a complete resolution to the high-stakes class action litigation.

Kim Marie Schlosser, an Inventory Associate, filed a representative action against Retail Services WIS Corp alleging the global inventory company violated California labor laws through systematic underpayment of overtime wages, failure to pay sick leave at proper rates, denial of meal and rest periods, and inaccurate wage statements. The company denied all allegations and raised 27 affirmative defenses. The parties settled for $893,754.

LaSalle Lofton, Jr., a Black supervisor at the City of Los Angeles Bureau of Sanitation, settled his racial discrimination and harassment lawsuit for $1,300,000. Lofton alleged that two Caucasian supervisors subjected him to repeated racial slurs, physical assault including choking, and retaliation after he reported their misconduct. The complaint detailed how Manager Elton Howerton allegedly used the n-word at least 10 to 15 times in the workplace and how Supervisor Peter German allegedly attacked Lofton while intoxicated, grabbing his throat with both hands. After Lofton reported these incidents, he claimed the City demoted him and interfered with his promotional opportunities. The case settled before the scheduled May 2022 trial date.

A San Diego construction defects case ended in a $1.4 million settlement after PB Ocean Condos, LLC sued general contractor KDTD, Inc. dba KD Development over widespread building failures at a 16-unit apartment complex. The property owner alleged the contractor failed to properly supervise construction work, resulting in flat roof drainage problems, excessive stucco cracking, balcony waterproofing failures, window and door leaks, corroded HVAC systems, and water intrusion throughout the structure. The lawsuit, filed in September 2024 in San Diego Superior Court, asserted claims for negligence, breach of express and implied warranties, and breach of contract stemming from a March 2018 construction agreement. The defendant denied all allegations and raised 44 affirmative defenses before the parties reached a settlement resolution.

Andrea Sosa, a former hourly employee of Bank of America, filed a class action lawsuit in Los Angeles Superior Court alleging the bank violated California labor laws. The complaint claimed remote workers completed lengthy VPN login procedures before clocking in without compensation. Sosa also alleged the bank rounded time punches to benefit the employer, failed to include bonus pay when calculating overtime rates, and did not reimburse employees for using personal internet and cell phones for work. Bank of America denied all allegations and raised 42 affirmative defenses. The parties reached a $4,400,000 settlement resolving claims on behalf of current and former hourly non-exempt employees throughout California.