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Chavez v. Texas De Brazil (Fresno), 1:19-CV-0502 AWI BAM. (2019)

Court: District Court, E.D. California Number: infdco20191101f61 Visitors: 9
Filed: Oct. 29, 2019
Latest Update: Oct. 29, 2019
Summary: ORDER FOR ADDITIONAL INFORMATION REGARDING STIPULATED DISMISSAL ANTHONY W. ISHII , Senior District Judge . On October 28, 2019, the parties filed a stipulation for dismissal of Plaintiff's individual and class claims and for the filing of Second Amended Complaint that pursued a state law Private Attorneys General Act ("PAGA") claim. See Doc. No. 18. The dismissal of the individual and class claims is based on an arbitration agreement that Plaintiff signed in connection with her employment
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ORDER FOR ADDITIONAL INFORMATION REGARDING STIPULATED DISMISSAL

On October 28, 2019, the parties filed a stipulation for dismissal of Plaintiff's individual and class claims and for the filing of Second Amended Complaint that pursued a state law Private Attorneys General Act ("PAGA") claim. See Doc. No. 18. The dismissal of the individual and class claims is based on an arbitration agreement that Plaintiff signed in connection with her employment with Defendants. See id. This case is in its early stages and no class has been certified and no motion for class certification has been filed.

Federal Rule of Civil Procedure 23(e) requires courts to approve the proposed voluntary dismiss of a class claim even before the class has been certified. See Choo v. Wellnx Life Scis., Inc., 2019 U.S. Dist. LEXIS 181959, *2 (E.D. Cal. Oct. 18, 2019); Madrid v. TeleNetwork Partners, Ltd., 2019 U.S. Dist. LEXIS 123653, *21 (N.D. Cal. July 23, 2019). Therefore, when parties seek to voluntarily dismiss class claims, the Court must be aware of prejudice to a class and consider three factors before authorizing a dismissal: "(1) class members' possible reliance on the filing of the action if they are likely to know of it either because of publicity or other circumstances, (2) lack of adequate time for class members to file other actions, because of a rapidly approaching statute of limitations, (3) any settlement or concession of class interests made by the class representative or counsel in order to further their own interests." Diaz v. Trust Territory of Pac. Islands, 876 F.2d 1401, 1408 (9th Cir. 1989); Choo, 2019 U.S. Dist. LEXIS 181959 at *2-*3; Madrid, 2019 U.S. Dist. LEXIS 123653 at *21.

Here, the stipulation indicates that the dismissal of the class claims is to be without prejudice. See Doc. No. 18 at ¶¶ 9, 13. Because the dismissal is without prejudice, other class members will be able to pursue claims against Defendants. For purposes of the third Diaz factor, the interests of the class are not adversely affected.

With respect to the first Diaz factor, the stipulation states that no putative class members have been given "written notice" of the class claims or the lawsuit and Plaintiff's counsel is "unaware of any putative class member who refrained from bringing similar class action allegations in reliance on the existence of this class action." Id. at ¶ 13. The Court is concerned with the limitations found in this paragraph. While the Court suspects that there is little reliance on this case by putative class members, the Court would like additional information from Plaintiff's counsel. In further submissions, Plaintiff's counsel should address any publicity regarding the putative class action/claims, whether it is known if putative class members received something other than a "formal written notice" of the class action, whether it is known if putative class members have foregone pursuing individual claims in light of the putative class action, and any other information that may be relevance to the issue of reliance.

With respect to the second Diaz factor, the stipulation does not address any statute of limitations related issues. Plaintiff's counsel is directed to do so.

Once the additional information is received, the Court will act on the parties' stipulation.1

ORDER

Accordingly, IT IS HEREBY ORDERED that, within ten (10) days of service of this order, Plaintiff's counsel shall provide the additional information requested regarding the first and second Diaz factors.

IT IS SO ORDERED.

FootNotes


1. The Court notes that the proposed Second Amended Complaint omits jurisdictional allegations. If the Court grants the parties' stipulation, Plaintiff's counsel will be ordered to include jurisdictional allegations as part of any amended complaint.
Source:  Leagle

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