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CONFIDENTIAL

Feb. 20, 1999

Business Law
Code Enforcement
Class Action

Confidential

Settlement –  $700,000

Judge

Loren E. McMaster

Court

Sacramento Superior


Attorneys

Plaintiff

Cathleen A. Williams

Gary M. Messing
(Messing, Adam & Jasmine LLP)


Defendant

Thomas E. Hill
(Holland & Knight LLP)

Remy J. Kessler
(Constangy Brooks Smith and Prophete LLP)


Facts

The plaintiffs in this class action were sales associates at defendant department store statewide. Plaintiffs had their gross sales, upon which commissions were calculated, reduced because of the returns of the merchandise. The customer returns were incorrectly attributed to sales that the defendant stated that sales associates (plaintiffs) had made. The plaintiffs brought this action against the defendant based on violation of Labor Code º221 (unfair business practices) and violation of Business and Profession Code º17200.

Settlement Discussions

The plaintiff made a C.C.P. º998 settlement demand for $5 million. The defendant made a C.C.P. º998 offer of compromise for $200,000.

Damages

Reduction of earned income.

Other Information

The settlement was reached approximately two years and four months after the case was filed. A settlement conference was held on Nov. 5, 1997, before Loren McMaster, a pro-tem judge in the Sacramento Superior Court, resulting in the reported settlement.


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