NOTICE TO CLASS OF PROPOSED SETTLEMENT
A Superior Court of the State of California, County of Orange has authorized this notice. This is not a solicitation.
If You Were An Employee of WALZ ENTERPRISES, INC., dba LA-Z-BOY FURNITURE GALLERIES, You May Receive Money From A Class Action Settlement
This is not a lawsuit against you and you are not being sued. However, your legal rights are affected whether you act or don’ act. t PLEASE READ THIS NOTICE CAREFULLY. WHAT THIS NOTICE CONTAINS 1. What is the purpose of this notice?… … … … … … … … … … … … … … … … … … … … … … … … … .. 2. Why was this motion made?… … … … … … … … … … … … … … … … … … … … … … … … … … … … 3. Why did WALZ ENTERPRISES, INC., dba LA-Z-BOY FURNITURE GALLERIES join in this motion?… … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … . 4. Why did I get this notice?… … … … … … … … ..… … … … … … … … … … … … … … … … … … … … .. 5. Who are the parties in the class action?… … … … … … ..… … … … … … … … … … … … … … … … … . 6. Who are the attorneys representing the parties?… … … … … … … … … … … … … … … … … … … … .. Page 2 Page 2
Page 2 Page 2 Page 2 Page 2
7. Is there a trial date set for this class action?… … … … … … … … … … … … … … … … … … … … … … . Page 3 8. What are my rights with regard to this matter?… … … … … … … … … … … … … … … … … … … … … 9. How much can I expect to receive? Are there any other benefits to the settlement? … … .… … … … 10. How will attorneys for the case be paid? Will there be any other deductions from the settlement fund? … .. 11. What if I need more information? … … … … … … … … … … … … … … … … … … … … … … … … … . Page 3 Page 3 Page 4 Page 4
What is the purpose of this notice?
The purpose of this notice is to let you know that there is a class action lawsuit pending in Superior Court of the State of California, County of Orange, and you may be a member of the class. Plaintiff Dorrie Berkowitz brought a lawsuit, individually and on behalf of others similarly situated. Ms. Berkowitz alleged that her employer WALZ ENTERPRISES,
Page 1 of 4
Questions? Call toll-free 1-800-542-0900
INC., dba LA-Z-BOY FURNITURE GALLERIES in California (hereinafter “WALZ”) did not pay overtime and failed to provide all required rest breaks and meal periods and related claims. There was a hearing on November 22, 2004 at 10:30 a.m. in the Superior Court of California, in the County of Orange. The parties to the lawsuit jointly made a motion to the Court for an order that does the following: 1.) Temporarily and conditionally certifies the Class Action for settlement purposes only; 2.) Grants preliminary court approval of the proposed settlement; 3.) Grants court approval of Notice To Class of Proposed Settlement. This includes setting a schedule and procedure for filing “opt-outs” and Claim Forms; 4.) Schedules a Fairness Determination Hearing for final Court approval of the Settlement. Furthermore, the Court will hold a Final Fairness Hearing concerning the proposed settlement on February 22, 2005 at 10:30 a.m., in Dept. CX-103 of the Orange County Superior Court located at 751 W. Santa Ana Blvd., Santa Ana, California 92701. This notice tells you of your options to share in the settlement.
Why was this motion made?
The parties filed this joint motion because they have reached a proposed Settlement that they believe to be fair, reasonable and adequate and in the best interests of all parties. The motion is based on this notice and joint motion, the points and authorities in support of the joint motion, stipulation of settlement, notices, and declaration of Michael Singer and any other documents or evidence which the Court may consider at the hearing of this motion.
Why did WALZ Furniture Galleries join in this motion?
WALZ joined in this motion only as a compromise. The company is not admitting to the allegations in the case and is not giving up its right to object to any allegation for any reason. WALZ denies that it owes money for unpaid overtime or failed to provide rest breaks or meal periods and related claims. WALZ reserves the right to object to any claim if the settlement fails for any reason. The Court file has the settlement documents with more information on the lawsuit.
Why did I get this notice?
You received this notice because you may be a member of the settlement class. You may submit a claim form to get money from this settlement if you worked for Walz Enterprises, Inc., dba La-Z-Boy Furniture Galleries in California during the time period from April 22, 1999 through August 30, 2003. .
Who are the parties in this class action?
Dorrie Berkowitz is the plaintiff in this class action, acting on her own behalf as well as on the behalf of other WALZ employees who are similarly situated. The Defendant is Walz Enterprises, Inc., doing business in California as La-Z-Boy Furniture Galleries.
Who are the attorneys representing the parties?
Page 2 of 4
Questions? Call toll-free 1-800-542-0900
Attorneys for the Plaintiffs
Timothy D. Cohelan, Esquire Isam C. Khoury, Esquire Michael D. Singer, Esquire Diana M. Khoury, Esquire COHELAN & KHOURY 605 C Street, Suite 200 San Diego, CA 92101-5305 Phone: 619-595-3001 Fax: 619-595-3000
Attorneys for the Defendants
Joey P. Moore, Esquire LAW OFFICES OF JOEY P. MOORE, APC 575 Anton Boulevard, Suite 710 Costa Mesa, California 92626
Phone: 714-438-7210 Fax: 714-438-0160
Is there a trial date set for this class action?
No trial date has been set at this time. What are my rights? To get money from the settlement you must complete the Claim Form and return it to the Claims Administrator, CPT GROUP, INC., post-marked no later than January 20, 2005. Class Counsel, appointed and approved by the Court for settlement only, will represent you. You need to complete the Claim Form and promptly return it to the Class Action Claims Administrator. The Claims Administrator will process the Claim Form and distribute money at a later date. If you fail to timely return a completed Claim Form, you will not receive any money from the settlement and you will not be permitted to assert any claims based on the allegations in the class action. If you do not wish to participate in the settlement, you must send to the Court and Class Action Claims Administrator a “Request for Exclusion from the Class Action Settlement” post-marked no later than January 3, 2005, and received by the Claim Administrator no later than January 5, 2005. If you request exclusion, you will receive no money from the settlement. The request must state: “I wish to be excluded from the settlement class in Superior Court of California, County of Orange, Case No. 03CC00147. I understand I will not receive money from the settlement.” Send the request directly to the Superior Court of State of California, County of Orange, Department CX 103, 751 W. Santa Ana Blvd., Santa Ana, California , 92701 and to the Berkowitz v. Walz Enterprises, Inc., Claims Administrator, c/o CPT Group, Inc., 16630 Aston Street, Irvine, California 92606 The judgment will bind all Class Members who do not request exclusion. Any Class Member who does not request exclusion may, if the member so desires, enter an appearance through his/her own lawyer.
How much can I expect to receive? Are there any other benefits to the settlement?
WALZ will pay $250,000 to cover claims by class members, attorneys’ fees, litigation and claims administration expenses, and the class representative enhancement. The actual amount that you will receive will vary based on the number of claims filed and the final cost of administering the settlement.
After the payment of the above-referenced items, the Net Settlement Amount will be split equally for distribution between two settlement groups referenced below for any time worked during the Class Period defined as from and including April 22, 1999 to through and including August 30, 2003: 1) One-half distributed to all non-exempt salaried/commissioned sales persons employed by WALZ in California [estimated to be approximately 209 employees] who worked at any time during the Class Period (“Total Employee Group”) to cover claims for missed rest and meal periods; and 2) Other one-half distributed to a subgroup consisting of 163 [of the total employee group of 209] nonexempt salaried/commissioned sales persons employed by WALZ in California who did not earn at least one and one-half times minimum wage and did not earn over 50% of their weekly income from commissions during the Class Period (“Overtime Group”). Page 3 of 4
Questions? Call toll-free 1-800-542-0900
The Total Employee Group Claimant’ payment will be based on the total number of workweeks the Claimant s was employed as a qualifying non-exempt salaried/commissioned sales person during the Class Period. Qualified Total Employee Group Claimants will receive a share of the Net Settlement Amount allocated to the Total Employee Group equal to the percentage that his or her workweeks of employment as a qualifying nonexempt salaried/commissioned WALZ sales person bears to the total number of workweeks worked by the qualified Claimants who present timely claims. A Total Employee Group Claimant’ weekly pay rate is estimated to s
be about $ 7.85.
The Overtime Group Claimant’ payment will be based on the number of weeks the Claimant was employed s during the Class Period and earned less than one and one-half times minimum wage and earned less than 50% of their total weekly income from commissions (“Overtime Weeks”). Qualified Overtime Group Claimants will receive a share of the Net Settlement Amount allocated to the Overtime Group equal to the percentage that his or her qualifying Overtime Weeks bear to the total number of Overtime Weeks worked by the qualified Claimants who present timely claims. An Overtime Group Claimant’ weekly rate is estimated to be about $56.59. s An Overtime Group Claimant may also submit a claim to receive his/her proportionate share of the Total Employee Group settlement fund as set forth above.
To calculate the Total Employee Group Claimant’ settlement amount, multiply $7.85 by the number of weeks worked as s listed in Section No. 1 of the Proof of Claim Form; to calculate the Overtime Group Claimant’ settlement amount, s multiply $56.59 by the number of weeks worked listed in Section No. 4 of the Proof of Claim Form. Applicable taxes will also be withheld. Please note that you will only get money from the settlement if you submit a valid Claim Form. How will attorneys for the case be paid? Will there be any other deductions from the settlement fund?
The attorneys for this case will be paid from the Settlement Amount of $250,000.00 and may ask for fees of up to 25% of the settlement and request reimbursement of their litigation expenses. The costs of administering the claims by the Claims Administrator will also be deducted from the settlement. If approved by the Court, an enhancement award of $10,000.00 will be paid to the named class representative, Dorrie Berkowitz, from the settlement amount for her services. What remains of the settlement fund, estimated to be approximately ($167,500.00) is the Net Settlement Amount from which all qualified claims will be paid to the Class Member. What if I need more information? If you have any questions, call the Berkowitz v. Walz Enterprises, Inc. Claims Administrator at 1-800-542-0900, toll free. Ask about the WALZ Class Settlement. WALZ Claims Administration c/o CPT Group, Inc. 16630 Aston Street Irvine, California 92606 PLEASE DO NOT CALL THE COURT. Dated: ___________________________________________ Honorable Ronald L. Bauer Judge of the Superior Court of the State of California Page 4 of 4
Questions? Call toll-free 1-800-542-0900