Maria Z. Stearns

Stearns is the chair of Rutan’s employment law department. She said she not only litigates cases but offers practical counsel on measures employers can take to proactively mitigate risk, in part because she thinks like a business person and because she has developed a positive rapport with the plaintiffs’ bar.

She’s on Rutan’s finance committee, and she’s the only female member of the compensation committee. She’s also the employment counsel for her own firm.

“I get to practice what I preach to clients,” she said. “I like people issues, and in particular I like practicing in California because it is so complicated for employers to comply with the myriad rules and laws. I enjoy helping navigate that.

“And then Covid added this additional layer of complexity. A lot of the rules probably sounded great in theory to people sitting around in some government office.”

The new rules weren’t Stearns’ only challenge. In at least two cases, she had to step in and re-negotiate for her clients cases that were well underway when the pandemic imposed new hurdles.

One case involved a Southern California nine-restaurant group that in 2019 had settled a wage and hour class action covering about 1,600 employees for $1 million. Vanegas v. Simmzys LLC, BC694817 (L.A. Super. Ct., filed Feb. 21, 2018).

Covid struck while the deal awaited final court approval, leaving the defendant unable to fund the settlement. Although she said she met a lot of resistance from opposing counsel, Stearns reopened talks to lower the price.

“The initial reaction was, ‘You have PPP money, so what are you crying about,’” she said. “I had to talk them through how that didn’t mean everything was roses and rainbows. We had at least five conversations. I said, ‘What do I need to show you?’ I produced financials, and they said they’d have their experts review them. I said, ‘Go ahead, and if you find a pot of money, let me know.’”

Ultimately, she bargained for a $500,000 revised settlement with the possibility of an additional $25,000 for each restaurant that is still open 12 months after the initial payment date. “So far, two of the restaurants have closed permanently. The founders are not the type to file for bankruptcy—and no one wins that way. Of course, opposing counsel were going to have to take less in fees. Still, they recognized the dire straits we all were in.”

The other case involved wage and hour and PAGA claims against a small Laguna Beach restaurant. A class certification hearing was set for a week after all such establishments were ordered to close. Stearns persuaded the other side to postpone the hearing; the matter ultimately settled on an individual basis with payments to be in installments. Nelson v. Broadway By Amar Santana, 30-2016-00888538 (Orange Co. Super. Ct., filed Nov. 21, 2016).

“There’s not a plaintiff bone in my body, but I treat opposing counsel with respect, and I have to commend both sets of attorneys. I’m proud I could help these companies stay alive.”

— John Roemer