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CONFIDENTIAL

Nov. 5, 2005

Employment Law
Class Action
Failure to Pay Compensation

Confidential

Settlement –  $22,000,000

Judge

John Cannon

Court

Orange Superior


Attorneys

Plaintiff

James M. Hansen

Larry N. Willis


Defendant

William S. Kannow

James DeRoche


Experts

Plaintiff

Kevin Taylor
(technical)

Philip Gorman
(technical)

Facts

Plaintiffs Ralph Olivas and Javier Gutierrez were class representatives for 12,000 to 13,000 current and former employees of defendant Smart & Final Inc. The defendant operates 238 non-membership warehouse stores carrying food and service supplies in various western states and northern Mexico.

Settlement Discussions

The parties settled the class action suit at mediation for $22 million, subject to the court's approval. Per a corporate press release by defendant, the settlement "specifically disclaims any liability or wrongdoing by the company" and defendant only "agreed to the proposed settlement to resolve all of the plaintiffs' claims and avoid the continuing distraction and expense, together with the risks, of protracted litigation." The defendant's counsel noted that the settlement had not been approved by the court yet.

Result

The parties settled the class action suit at mediation for $22 million, subject to the court's approval. Per a corporate press release by defendant, the settlement "specifically disclaims any liability or wrongdoing by the company" and defendant only "agreed to the proposed settlement to resolve all of the plaintiffs' claims and avoid the continuing distraction and expense, together with the risks, of protracted litigation." The defendant's counsel noted that the Court had not yet approved the settlement.


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