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CONFIDENTIAL

Sep. 2, 2000

Employment Law
Overtime Compensation
Failure to Pay

Confidential

Settlement –  $9,750,000

Judge

J. Richard Haden

Court

San Diego Superior


Attorneys

Plaintiff

Harvey C. Berger
(Berger, Williams & Reynolds, LLP)

Steven G. Zieff

Patrice L. Goldman
(Law Offices of Patrice L. Goldman APC)

A. Mark Pope


Defendant

Judy A. Landry

Richard Lucal
(Brownlie Hansen LLP)

Phillip L. Kossy

Van A. Goodwin


Facts

The plaintiffs were messengers and delivery drivers for defendant Corporate Express Delivery Systems-West
Coast Inc. (later acquired by United Shipping and Technology Inc.). The plaintiffs complained that the employerÆs policy of paying class members by way of a commission based on a percentage of monies charged customers for deliveries resulted in violation of CaliforniaÆs minimum wage and overtime pay laws, as well as violations of Labor Code Section 2802, which requires employers to reimburse employees for necessarily incurred employment expenses, including expenses incurred in connection with their mileage and vehicle expenses. The plaintiffs also claimed violation of Business and Professions Code Section 17200 et seq.
The defendant denied violating the applicable Labor Code provisions and contended that the damages were not as high as sought by the plaintiffs.

Other Information

A mediation before J. Lawrence Irving, retired, resulted in a settlement of $9.75 million ($3.25 million to class counsel for attorney fees and costs; $15,000 to each plaintiff in addition to the distributions under the Plan of Distribution.). $6.35 million (net) to class members on a pro-rata formulaic basis after deduction of the cost of administration in accordance with the Plan of distribution.


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