SUPERIOR COURT OF THE STATE OF WASHINGTON COUNTY OF SPOKANE
You may be entitled to benefits under a class action settlement if you have worked for DFS Freight Inc., Diamond Freight Systems, Inc., and/or Northwest Freight and Parcel LLC at any time from April 1, 2013, to March 15, 2019, while residing in the state of Washington.
- Three former employees, Jason Tschosik, Jurgen Thiede, and Amy Thomas (collectively referred to in this notice as “Plaintiffs” or “Class Representatives”) have sued Diamond Freight Systems, Inc., Northwest Freight and Parcel LLC, Parminder Thind, Rajiv Sauson, and Tony Mountaintes (collectively referred to in this notice as “Defendants”) based on alleged violations of Washington state wage and hour laws.
- Plaintiffs represent all current and former nonexempt employees of DFS Freight Inc., Diamond Freight Systems, Inc., and/or Northwest Freight and Parcel, LLC in the state of Washington from April 1, 2013, through March 15, 2019, who did not timely opt out following receipt of the class certification notice issued in January 2019. Those people are referred to as “the Class” or “Class Members.”
- The Court presiding over this case has issued a preliminary order approving a settlement that covers the Plaintiffs and Class Members in this case. The Court will decide whether the proposed settlement should be approved.
- Defendants have agreed to pay $385,000 to settle this action with the Class.
- As part of the proposed settlement, Defendants do not admit to any wrongdoing and continue to deny the allegations in Plaintiffs’ complaint.
- Your legal rights are affected whether you act or don’t act. Please read this notice carefully.
Basic Information
1. Why did I get this notice?
Defendants’ records show that you currently work or previously worked for DFS Freight, Inc., Diamond Freight Systems, Inc., and/or Northwest Freight and Parcel, LLC during the class period (from April 1, 2013 to March 15, 2019) while residing in the state of Washington.
2. What is this lawsuit about?
The Plaintiffs claim the Defendants violated certain Washington state wage and hour laws. Defendants deny the claims and deny that they have violated any Washington state laws.
3. Why is there a settlement?
The Court did not decide in any party’s favor. Instead, both sides agreed to a settlement. This allows the parties to avoid the cost of a trial, and the people affected will be entitled to compensation. The Class Representatives and their attorneys think the settlement is best for all Class Members under the circumstances. Defendants have not admitted fault or that they violated any laws, but they and their attorneys agree that a settlement is in all parties’ best interests.
4. What claims are resolved by the settlement?
The settlement will resolve all claims and allegations made on behalf of Class Members against Defendants in the last complaint filed against them in the lawsuit regarding Defendants’ alleged violation of Washington laws related to employee compensation, including the following claims:
- Failing to pay employees minimum wage for all hours worked;
- Failing to pay employees properly for overtime hours worked;
- Failing to compensate employees for the rest breaks to which they are entitled, whether the rest breaks were received or not;
- Failing to compensate employees for the meal breaks to which they are entitled, whether the meal breaks were received or not; and
- Failing to keep accurate records of time worked by employees.
The settlement will resolve alleged violations occurring from April 1, 2013, to March 15, 2019.
5. What are the basic terms of the settlement?
Subject to Court approval, the essential terms of the settlement are as follows:
Gross Settlement Fund: The settlement requires Defendants to pay a total of $385,000 to establish a Gross Settlement Fund. Under the settlement, at least $221,915 shall be distributed to the Settlement Class Members as compensation for releasing the claims resolved by the settlement as described above. This compensation is a substantial portion of the wages allegedly owed to Class Members as calculated by Class Counsel and their expert based on Defendants’ records.
Settlement Administrator: The settlement requires JND Legal Administration to act as and effectuate the duties of the Settlement Administrator in accordance with this Settlement Agreement. Plaintiffs will ask the Court to approve the payment of fees, costs, and other charges imposed by the Settlement Administrator from the Gross Settlement Fund in an amount not to exceed $11,000.
Class Representative Service Awards: Class Counsel will ask the Court to approve service awards to each Class Representative to compensate them for their time and effort. If approved, the Class Representatives will be paid up to a combined amount of $15,000 from the Gross Settlement Fund.
Attorneys’ Fees and Costs: Class Counsel have been working on this case for more than three years but have not received any fees or reimbursements for the costs of the lawsuit. Plaintiffs will ask the Court to approve payment from the Gross Settlement Fund to Class Counsel to reimburse them for out-of-pocket litigation costs and to compensate them for their reasonable attorneys’ fees. If approved, Class Counsel will be reimbursed for up to $11,200 in costs and up to $115,500 in attorneys’ fees.
Employer-Side Taxes: The Gross Settlement Fund includes coverage for any taxes that must be submitted to governing authorities on behalf of Defendants for the wage portion of the Settlement Class Member payments.
Distribution of the Settlement Fund: The Settlement Administrator, JND Legal Administration, will make payments directly to Class Members. If you have recently moved, plan to move within the next 90 days, or move before you have received all payments owed to you, please provide the Settlement Administrator with an updated address by contacting Class Counsel or the Settlement Administrator. Contact information is provided in Sections 11 and 12 below.
Tax Treatment of Claim Share Portion of Settlement Payments: Half (50%) of each Class Member’s settlement share will be treated and reported to government taxing authorities as wages and subject to normal employee-side payroll tax withholdings and payments. Half (50%) of each Class Member’s share will be treated and reported to government taxing authorities as non-wage damages and interest on which there will be no tax withholding, but which will still be considered taxable income.
Release of Claims: Upon final approval by the Court, Class Members will dismiss the lawsuit and release Defendants from all claims that were or could have been brought against them based on the allegations asserted in the last complaint filed in this lawsuit. This releases Defendants from liability related to any claims for unpaid wages, exemplary damages, interest, fees, costs, attorneys’ fees, and all other claims made in this lawsuit or that could have been made in this lawsuit for events occurring between April 1, 2013, and March 15, 2019.
For a full copy of the Settlement Agreement, please visit: http://www.terrellmarshall.com....
Dismissal of the Action: Upon final approval of the settlement, the Court will dismiss the lawsuit with prejudice but will retain jurisdiction to enforce the terms of the settlement.
6. How can I get a payment?
Each member of the Settlement Class who does not submit a valid and timely request for exclusion will automatically receive a settlement payment. Settlement payments will be proportional to the hours worked by each Settlement Class Member in relation to the hours worked by all Settlement Class Members, as calculated by Class Counsel and their expert based on Defendants’ records. Payments will be mailed to you at your address on record. If you move before you have received all payments owed to you, please provide the Settlement Administrator with an updated address by contacting Class Counsel or the Settlement Administrator. Contact information is provided in Sections 11 and 12 below.
Class Members who request to be excluded from the settlement will not receive payment.
7. When will I get my payment?
As part of the Settlement Agreement, Defendants have agreed to make one lump sum payment of $275,000 and twenty-four (24) monthly payments totaling $110,000 into the Settlement Fund. Because Defendants will be making payments over time, the parties have agreed that each Settlement Class Member will receive the money they are owed in two separate payments according to the timeline set forth below.
The Court will hold a hearing on August 30, 2019, to decide whether to approve the settlement. If the Court approves the settlement, the parties will then have to wait to see whether there is an appeal. This will take at least thirty (30) days and, if there is an appeal, can take up to a year or more to resolve. In the event of an appeal, information regarding the appeal’s progress will be posted at http://www.terrellmarshall.com....
If there is no appeal, Class Counsel expect the first payment to go out within sixty (60) days of the Court’s approval of the settlement.
Class Counsel expects the second payment to go out within thirty (30) days of the final monthly payment made by Defendants. If Defendants make all monthly payments according to the Settlement Agreement, this should be in or around April 2021. If Defendants do not make all monthly payments according to the Settlement Agreement, Class Counsel will have discretion to decide when to make the second and any additional partial payments to Settlement Class Members as settlement funds become available.
The amount of each payment made to Settlement Class Members will be determined by the percentage of the overall settlement amount Defendants have paid into the Gross Settlement Fund at the time payments are made to Settlement Class Members. For example, if Defendants have paid $300,000 into the Gross Settlement Fund at the time of the first payment to Settlement Class Members, Defendants will have paid 77.9% of the total Settlement Fund amount (300,000/385,000). Therefore, the first payment to each Settlement Class Member will be 77.9% of the total amount the Class Member is owed. If Defendants make all monthly payments according to the Settlement Agreement, each Settlement Class Member would then receive the remaining 22.1% of the total amount owed in the second payment.
The parties and their counsel believe that this arrangement is in the best interests of all parties and the Settlement Class Members and request your patience in this process.
8. Do I have a lawyer in this case?
The Court has decided that the Spokane, Washington law firm of Paukert & Troppmann, PLLC and the Seattle, Washington law firm of Terrell Marshall Law Group PLLC are qualified to represent you and all Class Members. Together, these lawyers are called “Class Counsel.” More information about Paukert & Troppmann, PLLC and Terrell Marshall Law Group PLLC, their practices, and their lawyers’ experience is available at http://paukertlawgroup.com/ and <a href=".
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9. What can I do if I don’t like the settlement?
If you don’t like the settlement, you have two options: you can choose to exclude yourself or you can choose to object.
How to Exclude Yourself:
If you exclude yourself, you will not be paid under the Settlement Agreement. If you exclude yourself, you may not object to the settlement.
To ask to be excluded, you must send a written letter to the Settlement Administrator at the address provided below. The letter must include your name, current address, and telephone number, as well as the following statement: “I want to be excluded from the proposed Settlement Class in Tschosik v. Diamond Freight Systems, Inc.” The letter must be signed by you and postmarked no later than July 15, 2019.
How to Object to the Settlement:
If you wish to object, you must send a written letter to the Settlement Administrator at the address provided below. The letter must include your name, current address, telephone number, and the name of the case, Tschosik v. Diamond Freight Systems, Inc., Case No. 16‐2‐01247‐1. It must also state the reasons why you think the Court should not approve the settlement and include any supporting documentation that you wish the Court to consider. The objection must be signed by you and postmarked no later than July 15, 2019. If the settlement is approved, you will still receive a payment under the settlement.
The Settlement Administrator is JND Legal Administration. Exclusion requests or objections must be mailed to:
Tschosik v. Diamond Freight Systems Settlement Administrator
c/o JND Legal Administration
PO Box 91209
Seattle, WA 98111
10. When and where will the Court decide whether to approve the settlement?
The Court will hold a Fairness Hearing at 1:30 p.m. on August 30, 2019, in the courtroom of:
The Honorable Maryann C. Moreno
Spokane County Superior Court, Department 7, Courtroom 401
1116 West Broadway Avenue
Spokane, WA 99260
At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. You do not have to come to the hearing.
11. How do I get more information?
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You" class="redactor-autoparser-object">More details and a full copy of the Settlement Agreement are available in the Important Documents section of this website: http://www.terrellmarshall.com/NW-Freight-Class-Action. You will also find certain filings made in the lawsuit, including Plaintiffs’ motion for final approval of the Settlement Agreement, which will be available on July 1, 2019. This motion will include Class Counsel’s request for attorneys’ fees and costs, settlement administration expenses, and service awards for the named Plaintiffs.
You may also get more information by calling Class Counsel at 1-855-349-7023 (toll free) or writing to:
Terrell Marshall Law Group PLLC
936 N. 34th Street, Suite 300
Seattle, WA 98103
The lawyers representing the Class are:
Andrew S. Biviano
Paukert & Troppman, PLLC
522 W. Riverside Avenue, Suite 560
Spokane, Washington 99201
Toby J. Marshall
Eric R. Nusser
Terrell Marshall Law Group PLLC
936 North 34th Street, Suite 300
Seattle, Washington 98103
12. What is the contact information for the Settlement Administrator?
Tschosik v. Diamond Freight Systems Settlement Administrator
c/o JND Legal Administration
PO Box 91209
Seattle, WA 98111