Mendoza v. Pacer Cartage, Inc., Settlement

Welcome to the Mendoza v. Pacer Cartage, Inc. Settlement Website

If you are a current or former driver who resided in the State of California and worked for Pacer Cartage, Inc. as Independent Contractor Truck Driver between August 19, 2009 and February 26, 2016, you May Be Eligible for a Payment from a Class Action Settlement.

A proposed settlement (the "Settlement") has been reached regarding the claims that have been brought in this class action lawsuit (the "Action").  The Notice you received and this website describes the case and will inform you of your rights and options in connection with the Settlement.

A hearing will be held before the Hon. Larry Alan Burns on June 27, 2016 at 12:00 p.m. in Courtroom 14A of the United States District Court, located at 333 West Broadway, San Diego, CA 92010, to determine whether the Settlement should be approved.

DO NOT CALL THE COURT OR THE CLERK OF THE COURT FOR INFORMATION ABOUT THIS LAWSUIT.


WHAT IS THIS CASE ABOUT? 

In the Second Amended Complaint (“Complaint”), Plaintiff, as the Class Representative, alleges the following claims (“Claims”) that Pacer: (1) misclassified drivers as independent contractors; (2) failed to provide meal or premium pay in lieu thereof; (3) failed to provide rest breaks or premium pay in lieu thereof; (4) failed to pay overtime; (5) failed to pay the California minimum wage for all hours worked; (6) failed to timely pay all wages owed upon separation; (7) failed to furnish timely and accurate wage statements; (8) failed to pay all wages owed every pay period; (9) failed to fully reimburse business expenses; and (10) engaged in unlawful, unfair, and deceptive business practices. Pacer denies Plaintiff’s claims and contends that Plaintiff and the Class Members were properly classified as independent contractors and that the Action is not suitable for class certification.

The Settlement is a compromise and settlement of disputed claims and is not an admission of liability on the part of Pacer. The Settlement is the result of good faith, arm’s length negotiations between the Class Representative and Pacer, through their respective attorneys. Both sides agree that, in light of the risks and expenses associated with continued litigation, the Settlement is fair and appropriate under the circumstances and in the best interests of the Class Members. The Court has not ruled on the merits of Plaintiff’s claims or Pacer’s defenses.

WHAT ARE THE SETTLEMENT TERMS? 

Gross Settlement Amount: Subject to final Court approval, Pacer will pay a total of $4,250,000 (“Gross Settlement Amount”) for the payment of: (a) the claims; (b) the Court-approved Incentive Award to Plaintiff, as the Class Representative, if any; and (c) the Court-approved attorney fee award and expense award.

Class Members’ Claims. After deductions from the Gross Settlement Amount for Court-approved Incentive Award to Plaintiff, if any, the Court-approved award to Class Counsel for attorney fees and expenses, and the costs of administering the Settlement, the Settlement Administrator will make a settlement payment to each Class Member who does not request exclusion from the Settlement from the remaining amount (the “Net Settlement Amount”). Each Class Member will receive a pro rata share of the Net Settlement Amount based on the number of “weeks worked” credited to that person during the Settlement Class Period. Each class member’s “weeks worked” credit is based on Pacer’s records of weeks contracted as an independent contractor truck driver for Pacer during the Settlement Class Period.

Class Counsel Attorneys Fees and Expenses, and Administrative Costs. Class Counsel will ask the Court to award attorney fees and litigation expenses up to $1,275,00 (30% of the Gross Settlement Amount). The Class Representative will also be entitled to receive his portion of the Net Settlement Amount. The cost of administrating the Settlement will be paid out of the Gross Settlement Amount.

WHAT ARE MY OPTIONS IN THIS MATTER? 

You have three options under the Settlement: 

OPTION A: Participate In The Settlement. In order to participate in the Settlement and receive a cash payment, you do not have to do anything. As long as you do not exclude yourself from the Settlement, you will receive a cash payment following final approval of the Settlement. 

OPTION B: If You Do Not Want To Be Bound By The Settlement. If you do not want to be part of the Settlement, you must submit a signed written request asking to be excluded from the Settlement (“Opt-Out Request”) to the Settlement Administrator: 

Mendoza v. Pacer Cartage Settlement Administrator

P.O. Box 40007

College Station, TX  77842-4007 

Your Opt-Out Request must include: (1) your full name, (2) your current address, and (3) a statement that you wish to be excluded from the Settlement. To be valid, your Opt-Out Request must be postmarked on or before June 13, 2016. If you do not timely submit an Opt-Out Request (as evidenced by the postmark), your Opt-Out Request will be rejected, you will be deemed a member of the Settlement Class, and you will be bound by the release of Released Claims as described in the “What claims are being released by the Settlement?” section on the Notice and all other Settlement terms. If the Opt-Out Request is sent from within the United States, it must be sent through the United States Postal Service by First-Class U.S. Mail. If you timely submit an Opt-Out Request, you will have no further role in the Action, and for all purposes, you will be regarded as if you never were a Class Member. You will not be entitled to any benefit as a result of this Action and will not be entitled to or permitted to assert an objection to the Settlement. 

If you send an Opt-Out Request to the Settlement Administrator by mistake or change your mind, you can still participate in the Settlement if you submit a Rescission of Opt-Out Request. Your Rescission of Opt-Out Request must include: (1) your full name, (2) your current address, and (3) a statement that you wish to rescind your request for exclusion from the Settlement. To be valid, your Rescission of Opt-Out Request must be postmarked on or before June 13, 2016. 

OPTION C: Objecting to the Settlement. If you believe the Settlement is unfair or inadequate in any respect, you may object to the Settlement, either personally or through an attorney (at your own expense), by filing a written objection with the U.S. District Court, Southern District of California, and serving a copy of your written objection to Class Counsel, Counsel for Pacer, and the Settlement Administrator at their respective addresses listed on the Notice. YOU CANNOT OBJECT TO THE SETTLEMENT IF YOU REQUEST EXCLUSION FROM THE SETTLEMENT.


For additional information, please visit the Frequently Asked Questions page of this website.