Facts

Defendants Hansa Stars Inc., Hansa Stars Logistic Inc., and Hansa Stars C.F.S. Inc. operate a logistics, warehousing, and transportation company in Los Angeles. On February 4, 2009, plaintiffs Isileli T. Aholelei and Anthony D. Freeman, two current employees, and Bobby S. Abdon and Torr Andrews, two former employees, filed a class action lawsuit against defendants Hansa Stars Inc. and Hansa Stars Logistic Inc. alleging that defendants failed to pay wages for all hours worked, failed to pay overtime wages, failed to pay wage premiums for missed meal and rest breaks, failed to pay all vested vacation pay, failed to provide accurate wage statements, and failed to timely provide all former employees final wages after separation of employment. Plaintiffs sought civil penalties associated with their allegations of Labor Code violations. On July 17, 2008, plaintiffs dismissed their class action allegations, choosing to proceed to trial as individuals.

On Aug. 8, 2008, less than one week after an unsuccessful mediation, defendants informed plaintiffs Aholelei and Freeman that they were laid off because defendants were ceasing their business operations. Subsequent to that date, defendants' employees confirmed to plaintiffs that plaintiffs Aholelei and Freeman were the only employees laid off and that defendants' business had continued without any interruption.

On Oct. 16, 2008, the plaintiffs amended their complaint to allege a cause of action for wrongful termination in violation of the public policy on behalf of plaintiffs Aholelei and Freeman. Plaintiffs also amended their complaint to add defendant Hansa Stars C.F.S. Inc. as a joint employer of plaintiffs who shared common employees and common management with defendants Hansa Stars Inc. and Hansa Stars Logistic Inc.

PLAINTIFF'S CONTENTIONS:
All plaintiffs claimed defendants failed to pay overtime and double wages, to pay proper wages upon conclusion of employment, to provide proper wage statements, to pay vested vacation pay, or to allow meal or rest periods.

Plaintiffs Andrews and Aholelei also claimed defendants terminated their employment because of the filing of their wage and hour lawsuit in violation of the public policy prohibiting discharge of an employee who institutes a proceeding to enforce his or her rights under the Labor Code.

Plaintiffs also claimed that defendants Hansa Stars Inc., Hansa Stars Logistic Inc., and Hansa Stars C.F.S. Inc. operated as joint employers of plaintiffs and as an integrated enterprise that shared common employees, a common location, and common management and control. Plaintiffs claimed that all defendants were jointly and severally liable for all claims.

DEFENDANTS' CONTENTIONS:
Defendants contended that they complied with all California wage and hour laws and that they laid off plaintiffs Andrews and Aholelei. Defendants also contended that they were three separate companies operating separate divisions of a logistics, warehousing, and transportation company in Los Angeles. Defendants contended that plaintiffs were only employed by Hansa Stars Inc.

Settlement Discussions

The parties participated in an early neutral evaluation and a party pay panel mediation through the Alternative Dispute Resolution department of the Los Angeles Superior Court. Prior to the termination of plaintiffs Andrews and Aholelei, Defendants offered $10,000 to settle the wage and hour claims of all four plaintiffs. Plaintiffs demanded $85,000 inclusive of their attorney fees and costs. Subsequent to the termination of plaintiffs Andrews and Aholelei, the parties did not discuss settlement.

Damages

Plaintiffs sought unpaid wages, back pay, front pay, statutory and civil penalties, punitive damages and damages for emotional distress.

Result

The court held in favor of plaintiffs and awarded a total of $3,234,434 against defendants Hansa Stars Inc., Hansa Stars Logistic Inc., and Hansa Stars C.F.S. Inc., jointly and severally. Andrews received a total award of $20,904; Abdon received $22,702, Freeman received $1,417,604, Aholelei received $1,684,049. Civil penalties totaling $89,175 was granted to the Labor Workforce Development Agency against defendants.

Other Information

Months prior to trial, defendants stopped participating in litigation. Defendants failed to provide discovery responses, failed to appear at noticed depositions, and violated the trial court's order for them to provide responses and appear at deposition. Because of defendants' refusal to participate in litigation or communicate with their own counsel, defendants' counsel filed a motion to be relieved as counsel, which the court granted only weeks before the trial. Defendants were neither represented nor present at trial. POST-TRIAL MOTIONS: Plaintiffs were awarded costs in the amount of $3,915 and attorney fees in the amount of $79,525. FILING DATE: Feb. 4, 2008.