THOMAS O. MYERS, Esq. (CBN 120674)
Myers & Jones, LLP
601 S. Figueroa Street, 37th Floor
Los Angeles, CA 90017
| Filed Clerk, U.S. District Court Dec 27, 2000 Central District of California |
Phone: (213) 488-6551
Fax: (231) 622-6055
JEFFREY L. RHODES, Esq.
RAYMOND J. LAJEUNESSE, JR., Esq.
Pro Hac Vice Applications Pending
National Right to Work Legal
Defense Foundation, Inc.
8001 Braddock Road, Suite 600
Springfield, Virginia 2160
Phone: (703) 321-8510
Fax: (703) 321-9319
Attorneys for Plaintiffs
IN THE UNITED STATES DISTRICT COURT
FOR THE CENTRAL DISTRICT OF CALIFORNIA
Western Division
Steve Adler, David Fajardo, Patricia Galbreath, George Gerber, Maureen Shotts, and Patricia Tarp
On behalf of themselves and other persons similarly situated,
Plaintiffs,
v.
California School Employees Association; George Bloch, in his official capacity as Superintendent, Chino Valley Unified School District; Chino Chapter 102, CSEA; Donald Ingwerson, in his official capacity as Superintendent, Los Angeles County Office of Education; Los Angeles Chapter 500, CSEA; Loraine Garcy, in her official capacity as Superintendent, Board of Education, Livermore Valley Joint School District; Livermore Chapter 334, CSEA; Edward Brand, Sweetwater Union High School District; Sweetwater Chapter 258, CSEA,
Defendants.
Civil Action No. CV-00-10442 CBM (SHx)
U.S. District Judge Consuelo B. Marshall
STIPULATION FOR SETTLEMENT AGREEMENT
This Agreement is entered into by and between Plaintiffs Steve Adler, David Fajardo, Patricia Galbreath, George Gerber, Maureen Shotts, and Patricia Tarp and Defendants California School Employees Association (“CSEA”) and CSEA Chino Chapter 102, CSEA Los Angeles Chapter 500, CSEA Livermore Chapter 334, and CSEA Sweetwater Chapter 258 (the “Defendant Chapters “). The aforementioned Plaintiffs and Defendants are collectively referred to in this Agreement as “the parties.”
WHEREAS, the Plaintiffs have filed Adler v. California School Employees Association, currently pending before the United States District Court for the Central District of California, Civil Action No. CV-00-10442 CBM (SHx) (hereafter “Adler“); and
WHEREAS, the Alder litigation raises various challenges to CSEA and the Defendant Chapters’ service fee objection notice and procedures and to activities that are described as chargeable therein; and
WHEREAS, CSEA and the Defendant Chapters deny that they have acted in any manner illegally or improperly as asserted in Adler; and
WHEREAS, the parties wish to resolve fully and finally the issues raised in Adler;
NOW, THEREFORE, for and in consideration of Plaintiffs entering into this comprehensive Agreement, which is intended to fully and finally settle that litigation, the parties agree as follows:
1. CSEA, its chapters, officers, employees, agents, and all other persons who act in concert with them, shall immediately request that all school districts cease collecting from the wages and salaries of Plaintiffs and all other CSEA nonmembers the local chapters’ portion of the service fee for the remainder of the current school year unless or until Plaintiffs and other CSEA nonmembers are provided with independently verified financial information which substantiates the pertinent chapter’s chargeable service fee, a thirty (30) day opportunity to object, and a rebate of the pertinent chapter’s nonchargeable portion of the service fee for the current school year within sixty (60) days after receipt of the objection by CSEA or its chapters. For purposes of this paragraph, the nonchargeable portion of chapter service fees shall be computed as the state organization’s nonchargeable portion. The state organization’s nonchargeable portion for purposes of this paragraph shall include that portion of the service fee attributable to CSEA expenditures for defending against the decertification of existing bargaining units.
2. Beginning with the 2001-2002 school year and for subsequent school years, CSEA, its chapters, officers, employees, agents, and all other persons who act in concert with them, shall either: (1) provide independently verified financial information which substantiates the pertinent chapter’s chargeable service fee to Plaintiffs and other CSEA nonmembers on or before October 20 of every school year in which a service fee is assessed, followed by a thirty (30) day opportunity to object, and a rebate of the pertinent chapter’s nonchargeable portion of the service fee for the current school year within sixty (60) days after receipt of the objection by CSEA or its chapters, and shall place in an independently-managed escrow account all service fees collected for pertinent chapters until the time period for filing objections and challenges closes, after which the reasonably disputed portion of the fee will remain in an independently-managed escrow account for fee challengers until their challenges are resolved; or (2) not collect or require payment of a chapter service fee for that school year and forthwith shall provide Plaintiffs and other CSEA nonmembers a rebate from an independently-managed escrow account of all service fees collected for the pertinent chapter up to and including October 20.
3. If not already repaid to Plaintiffs and other fee objectors for the 2000-2001 school year, within fifty (50) days of its signature on this agreement, CSEA or its chapters shall repay Plaintiffs and other fee objectors for chapter service fees collected up to the date of this agreement as follows: Adler and Fajardo shall receive the amount of the local chapter’s nonchargeable portion of service fees deducted from their wages from December 9, 1999; Shotts shall receive the amount of the local chapter’s nonchargeable portion of service fees deducted from her wages from January 1, 2000; Gerber shall receive the amount of the local chapter’s nonchargeable portion of service fees deducted from his wages from September 1, 2000; all remaining Plaintiffs and other fee objectors for the 2000-2001 school year shall receive the amount of the local chapter’s nonchargeable portion of service fees deducted from their wages from September 28, 1999. For purposes of this paragraph, the nonchargeable portion of chapter service fees shall be computed as the state organization’s nonchargeable portion. The state organization’s nonchargeable portion for purposes of this paragraph shall include that portion of the service fee attributable to CSEA expenditures for defending against the decertification of existing bargaining units.
4. Beginning with the 2001-2002 school year and for subsequent school years, CSEA, its officers, employees, agents, and all other persons who act in concert with them, shall either: (1) provide independently verified financial information which substantiates the state organization’s chargeable service fee to Plaintiffs and other CSEA nonmembers on or before October 20 of every school year in which a service fee is assessed, followed by a thirty (30) day opportunity to object, and a rebate of the state organization’s nonchargeable portion of the service fee for the current school year within sixty (60) days after receipt of the objection by CSEA, and shall place in an independently-managed escrow account all service fees collected for the state organization until the time period for filing objections and challenges closes, after which the reasonably disputed portion of the fee will remain in an independently-managed escrow account for fee challengers until their challenges are resolved; or (2) not collect or require payment of the state organization’s service fee for that school year and forthwith shall provide Plaintiffs and other CSEA nonmembers a rebate from an independently-managed escrow account of all service fees collected for the state organization up to and including October 20.
5. Where practicable, the CSEA will include on its October 20 notification list employees whose agency fee obligation commences or is reinstated during the course of any school year. Where such inclusion is not practicable, such employees may be provided notice after October 20, but must receive such notice as soon as is practicable following the initial payroll deduction of agency fees and be given the same opportunity to object under the same procedures specified in paragraphs 2 and 4 above. In the event notice is not provided within sixty (60) days of commencement or reinstatement of an agency fee obligation, the fee payer will be paid forthwith all fees collected, with interest, through the date of the later-provided notice.
6. If not already repaid to Plaintiffs and other objectors for the 2000-2001 school year, within fifty (50) days of its signature on this agreement, CSEA shall repay Plaintiffs and other fee objectors the amount of the state organization’s nonchargeable portion of the fees deducted from their wages as follows: Adler and Fajardo shall receive the amount of the state organization’s nonchargeable portion of the fees deducted from their wages from December 9, 1999 up to and including the date of its signature on this agreement; Shotts shall receive the amount of the state organization’s nonchargeable portion of the fees deducted from her wages from January 1, 2000 up to and including the date of its signature on this agreement; Gerber shall receive the amount of the state organization’s nonchargeable portion of the fees deducted from his wages from September 1, 2000 up to and including the date of its signature on this agreement; all remaining Plaintiffs and other fee objectors for the 2000-2001 school year shall receive the amount of the state organization’s nonchargeable portion of the fees deducted from their wages from September 28, 1999 up to and including the date of its signature on this agreement. The state organization’s nonchargeable portion for purposes of this paragraph shall include that portion of the service fee attributable to CSEA expenditures for defending against the decertification of existing bargaining units.
7. The parties agree that for employees who do not allow their home addresses to be provided to CSEA and its chapters, all notices and other information may be sent to the main office of the school district employer.
8. From the date of its signature on this agreement forward, CSEA and its chapters shall not collect or require payment from Plaintiffs and objecting nonmembers of that portion of the service fee attributable to expenditures for defending against the decertification of existing units and shall not represent in any of their independently verified financial disclosures that any expenditures for organizing, defending against decertification of existing units, and for lobbying and other legislative activities other than for ratification of, or fiscal appropriations for, the collective bargaining agreement are chargeable to objecting nonmembers. CSEA and its chapters shall submit to Plaintiffs proof that it is not currently charging nonmembers for organizing, defending against decertification of existing units, and for lobbying and other legislative activities other than for ratification of, or fiscal appropriations for, the collective bargaining agreement on or before December 8, 2000.
9. Within thirty (30) days of its signature on this agreement, CSEA shall pay Plaintiffs $1 each as nominal damages.
10. CSEA and the Defendant Chapters agree that Plaintiffs are prevailing parties for purposes of 42 U.S.C. § 1988. CSEA shall pay reasonable attorneys’ fees and costs for the litigation activities related to this lawsuit as follows: (1) $14,000 to the National Right to Work Legal Defense and Education Foundation, Inc., 8001 Braddock Road, Suite 600, Springfield, Virginia 22160, and (2) $708 to Myers & Jones, LLP, 601 South Figueroa Street, Thirty-Seventh Floor, Los Angeles, California 90017.
11. Within forty-five (45) days of final approval of the settlement after a fairness hearing by the Court, if any, Plaintiffs will file with the Court a Notice of Dismissal of Adler, with prejudice, pursuant to Fed. R. Civ. P. 41(a)(1)(ii).
12. The parties intend this Agreement to comply with the continuing development of the law on agency fees. To the extent that the law on agency fees in California state courts, federal District Courts in California, the Ninth Circuit, or the United States Supreme Court changes, it is the intent of the parties that the Agreement be modified to reflect those changes. If either party believes that the law described above has changed, that party shall notify the opposing party or parties and the parties shall attempt to modify the Agreement. If the parties cannot agree on modifications to the Agreement, any party may commence litigation to modify the settlement to comply with the law on agency fees. In the event of such litigation, this Agreement shall not be used by any party as reason not to modify the Agreement.
13. For purposes of this Agreement, independently verified financial information shall include copies of the independent auditor’s report and opinion and accompanying table(s) verifying the allocation of the union’s chargeable and non-chargeable audited expenditures for the preceding year.
14. No Inference of Liability; Limited Scope of Agreement.
a. The parties expressly recognize that they are entering into this agreement as a compromise of disputed claims, solely in order to avoid the considerable expense that would be entailed in pursuing this litigation to completion, and to minimize the possibility of future litigation. In particular, the parties agree that the execution and implementation of this agreement shall not give rise to any inference whatever that defendants have violated any constitutional or other right of plaintiffs, or that the changes defendants have agreed to make were constitutionally required.
b. The parties do not intend that any of the terms of this agreement are to be followed in jurisdictions or bargaining units not covered by this agreement. Nor are such terms to serve as an acknowledgment in any respect, express or implied, that in other jurisdictions or units such terms are to be followed by the parties, their counsel, affiliates, parents, or related organizations. This agreement does not constitute an acknowledgment by the parties or their counsel that the provisions agreed to herein either comply with or are required by the United States Constitution.
15. Rule 23 Approval. The parties will take the following measures to obtain class certification and final Court approval of the settlement outlined in this Agreement:
a. On or about January 31, 2000, the parties will jointly request the Court to: (i) certify a class consisting of all individuals who are or were, at any time during the period beginning September 28, 1999 through December 31, 2000, fee-paying non-union classified public school employees and represented for collective bargaining purposes by the CSEA; (ii) preliminarily approve the terms of this Agreement; (iii) approve a Notice of Proposed Settlement of Class Action Lawsuit, which the parties will jointly submit, advising class members of the terms of this proposed settlement and of the procedures through which they may, within thirty (30) days of the date of mailing, file objections to the proposed settlement; (iv) order that the Notice be mailed, within fifteen (15) days of the Court’s order, to the last known addresses of all members of the class certified by the Court; and (v) schedule a fairness hearing to consider any objections filed by class members, at least fifteen (15) days after the deadline for filing such objections.
b. CSEA shall be responsible for printing the Notice of Proposed Settlement, and for mailing it to members of the class.
c. No later than seven (7) days before the date set for the hearing described in subparagraph 15(a)(v), counsel for plaintiffs and counsel for defendants shall prepare and jointly submit to the Court a request that the Court finally approve the settlement set forth in this Agreement. On or before the same date, the CSEA shall file affidavits or declarations showing that they have mailed the Notice of Proposed Settlement by first-class mail, the date of mailing, the names of class members to whom the notice was mailed, the number returned by the post office, the attempts made to obtain new addresses for the returned notices, and the number of notices that remain undelivered.
16. The individuals signing below warrant that they are fully authorized to execute this Agreement for their respective parties.
Date: December 6, 2000
Jeffrey L. Rhodes, Esq.
Raymond J. LaJeunesse, Esq.
c/o National Right to Work Legal Defense Foundation, Inc.
By:_________________________________
Jeffrey L. Rhodes
Attorneys for Plaintiffs Steve Adler, David Fajardo, Patricia Galbreath, George Gerber, Maureen Shotts, and Patricia Tarp
Date: December 15, 2000
Glenn Rothner, Esq.
Rothner, Segall, & Greenstone
Madalyn J. Frazzini
California School Employees Association
By:_________________________________
Glenn Rothner
Attorney for Defendant California School Employees Association and Defendants Chino Chapter 102, CSEA, Los Angeles Chapter 500, CSEA, Livermore Chapter 334, CSEA, and Sweetwater Chapter 258, CSEA
