Frequently Asked Questions




1. Why did I get this notice?

Desert Coach’s records show that it employed you as a driver in the state of Washington between February 24, 2020, and January 31, 2024, which may make you eligible to receive benefits under the settlement.

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2. What is this lawsuit about?

Plaintiff claims Desert Coach violated certain wage and hour laws under Washington’s Industrial Welfare Act, Minimum Wage Act, and Wage Rebate Act. Desert Coach denies the claims and denies that it has violated any laws or engaged in any wrongdoing.

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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 and risk of a trial, and the people affected will be entitled to compensation. The Class Representative and his attorneys think the settlement is best for all Class Members under the circumstances. Desert Coach has not admitted fault or that it violated any laws, or that this case met the standards for a class action, but the company believes that a settlement is in the best interest of all parties.

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4. What Claims are resolved by the settlement?

The settlement will resolve all claims and allegations occurring between February 24, 2020, and January 31, 2024, which Plaintiff made against Defendants on behalf of the Settlement Class Members, including the following claims:

  • Failure to provide drivers with the rest breaks to which they are entitled in violation of RCW 49.12.020 and WAC 296-126-092;
  • Failure to provide drivers with the meal breaks to which they are entitled in violation of RCW 49.12.020 and WAC 296-126-092;
  • Failure to pay all overtime wages to drivers when they work more than 40 hours in a workweek in violation of RCW 49.46.130;
  • Failure to pay all overtime wages to drivers when they work more than 40 hours in a workweek in violation of RCW 49.46.130;
  • Making unlawful deductions and rebates from the wages of drivers in violation of RCW 49.52.060 and WAC 296-126-028; and
  • Failure to provide paid sick leave to drivers in violation of RCW 49.46.210.

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5. What are the basic terms of the settlement?

Subject to Court approval, the essential terms of the settlement are as follows:

Settlement Fund: The settlement requires Desert Coach to pay up to $1,254,468 to establish a Settlement Fund. Under the settlement, a portion of this fund will be distributed to the Settlement Class Members as compensation for releasing the claims resolved by the settlement as described above.

Settlement Administrator: The settlement requires Simpluris, Inc. to act as and effectuate the duties of the Settlement Administrator in accordance with the Settlement Agreement. Plaintiff will ask the Court to approve the payment of fees, costs, and other charges imposed by the Settlement Administrator, which will be paid from the Settlement Fund.

Class Representative Service Award: Class Counsel will ask the Court to approve a Service Award of up to $10,000 to the Class Representative to compensate him for his time and effort in pursuing this case on behalf of the Settlement Class. The Class Representative Service Award will be paid from the Settlement Fund.

Attorneys’ Fees and Costs: Class Counsel have been working on this case for more than eighteen months but have not received any fees or reimbursements for the costs of the lawsuit. Plaintiff will ask the Court to approve a payment of $330,000 to Class Counsel to compensate them for their reasonable attorneys’ fees. Plaintiff will also ask the Court to reimburse Class Counsel for out-of-pocket litigation costs up to $40,000.

Distribution of the Settlement Fund: The Settlement Administrator will make payments directly to Settlement Class Members. If you have recently moved, plan to move within the next ninety (90) days, or move before you have received all payments owed to you, please contact the Settlement Administrator to provide an updated address.

Tax Treatment of Settlement Payments: Settlement payments made to each Settlement Class Member will be treated as 40% wages and 60% non-wages.

  • For the 40% wage portion of each settlement payment, the Settlement Administrator will withhold the appropriate payroll taxes and other tax withholding and will disburse those funds directly to the IRS or appropriate state agency. The Settlement Administrator will report the wage portion as taxable income on an IRS Form W-2.

  • For the 60% non-wage portion, the Settlement Administrator will not withhold any taxes, but this portion will still be considered taxable income. The Settlement Administrator will report the non-wage portion as taxable income on an IRS Form 1099.

Please consult with your accountant or tax advisor regarding potential tax consequences of the settlement payment.

Release of Claims: Upon final approval by the Court, Plaintiff and Settlement 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 complaint filed in this lawsuit. This releases Defendants as well as each of their respective past and present directors, officers, agents, shareholders, members, managers, employees, attorneys, insurers, successors, and assigns (“Released Parties”), 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 February 24, 2020, and January 31, 2024, including any claims based on: (1) an alleged failure to pay for all hours worked; (2) an alleged failure to pay overtime; (3) an alleged failure to pay all applicable minimum wages; (4) any alleged missed or non-compliant meal periods and/or rest breaks (and/or a failure to pay any wages to compensate for the same); (5) a failure to pay any tips, gratuities, service charges, automatic gratuities, or “driver gratuity” and/or any alleged act or failure to act on the part of the Released Parties that resulted in a lessening of any tips, gratuities, service charges, automatic gratuities, or “driver gratuity” being paid to the members of the Class; (6) an alleged failure to pay or provide reimbursement for any business expenses and/or any alleged “de facto” wage deductions arising from the same; and (7) an alleged failure to provide any required paid sick and safe leave.

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.

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6. How can I get a payment?

Each eligible Class Member who does not submit a valid and timely request for exclusion will automatically receive a settlement payment in an amount based on damages calculations made by Plaintiff’s damages expert. Payments will be mailed to you at your address on record. If you move before you receive any payment owed to you, please provide the Settlement Administrator with an updated address.

Class Members who ask to be excluded from the settlement will not receive payment.

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7. When will I get my payments?

The Court will hold a hearing on February 28, 2025, at 10:30 a.m., to decide whether to approve the settlement. If the Court approves the settlement, the parties will then have to wait to see if 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 on the website. If there is no appeal, Class Counsel expect the payment to go out within sixty-two (62) days of the Court’s final approval of the settlement.

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8. Do I have a lawyer in this case?

The Court has decided that lawyers from Terrell Marshall Law Group PLLC are qualified to represent you and all Class Members and has approved them to do so. These lawyers are called “Class Counsel.” You will not be separately charged for these lawyers; they will be compensated for their time and reimbursed for their costs in amounts approved by the Court. If you want your own lawyer, you may hire one at your own expense. If you hire your own lawyer, you may enter an appearance through that lawyer.

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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 mail 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 a statement clearly asking to be excluded (for example: “I want to be excluded from the settlement inMadden v. North American Car Service Corp.”). The letter must be signed by you and postmarked no later than February 18, 2025.

How to Object to the Settlement:

If you wish to object, you must submit a written letter to the Settlement Administrator by mail. The letter must include (1) your name, address, and telephone number; (2) the name of the case, Madden v. North American Car Service Corp. d/b/a Desert Coach, et al., Case No. 23-2-03503-8 KNT; (3) the reasons why you think the Court should not approve the settlement; (4) any supporting documentation you wish the Court to consider; (5) a request to appear at the Final Approval Hearing if you or your attorney wish to appear; and (6) your signature. The letter must be postmarked no later than February 18, 2025.

If the settlement is approved, you will still receive a payment under the settlement.

The Settlement Administrator is Simpluris, Inc. You can mail exclusion requests or objections to Simpluris, Inc. at the following address:

Madden v. North American Car Service
Corp. d/b/a Desert Coach
c/o Settlement Administrator
P.O. Box 26170
Santa Ana, CA 92799

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10. When and where will the Court decide whether to approve the settlement?

The Court will hold a Fairness Hearing at 10:30 a.m. on February 28, 2025, in the courtroom of:

The Honorable Andrea Robertson
Courtroom E-815
King County Superior Court
516 Third Avenue
Seattle, WA 98104

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 and/or your personal attorney may attend the hearing if you wish, but it is not required. If you or your attorney wish to be heard by the Court at the hearing, you must request in writing to do so. See “How to Object to the Settlement” in Section 9 of this notice for more information.

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11. How do I get more information?

You can find certain filings made in the lawsuit, including Plaintiff’s motion for final approval of the Settlement Agreement, which will be posted no later than February 5, 2025. This motion will include Class Counsel’s request for settlement administration expenses, a service award for the Plaintiff, and attorneys’ fees and costs. You may also get more information by contacting Class Counsel.

The lawyers representing the Class are:

Toby J. Marshall and Eric R. Nusser
TERRELL MARSHALL LAW GROUP PLLC
936 North 34th Street, Suite 300
Seattle, Washington 98103
Phone: (855) 349-7023
Email: classactions@terrellmarshall.com

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