Action brought by plaintiff individually and under PAGA on behalf of 16 aggrieved massage therapists misclassified as independent contractors.
The Case
- Case Name: Jaqulyne Roe v. Goodlife Physical Medicine, Inc., et al.
- Court and Case Number: Los Angeles Superior Court / 20STCV26877
- Date of Verdict or Judgment: Friday, October 11, 2024
- Date of Settlement: Monday, December 23, 2024
- Date Action was Filed: Monday, July 13, 2020
- Type of Case: Labor Code Violation
- Judge or Arbitrator(s): Hon. Lia Martin
- Plaintiffs:
Jaqulyne Roe, individually and on behalf of the State of California
- Defendants:
Goodlife Physical Medicine, Inc.Goodlife Management Services, LLCDave Carry Chiropractic, Inc.Adam Weitzman, M.D.David Carry, D.C.
- Type of Result: Bench Verdict
The Result
- Gross Verdict or Award: $981,155
- Net Verdict or Award: $981,155
- Award as to each Defendant:Following a twelve-day bench trial, the judge found in favor of plaintiff on all causes of action, declaring all defendants joint employers and imposing joint and several liability on all, including chiropractor and physician owners pursuant to Labor Code sections 558 and 558.1.
- Economic Damages:$292,646 to plaintiff Jaqulyne Roe on individual causes of action.
- $688,509 in PAGA civil penalties awarded to State of California and 16 aggrieved massage therapists.
- Trial or Arbitration Time: 12 days
- Post Trial Motions & Post-Verdict Settlements: Defendants agreed to pay 100% of plaintiff's counsels' requested fees of $1,329,085 to avoid conversion of defendants Goodlife Physical Medicine, Inc. and Dave Carry Chiropractic, Inc.'s Chapter 11, Subchapter V bankruptcies to Chapter 7 liquidations.
The Attorneys
- Attorney for the Plaintiff:
Bedinger Law by Robert D. Bedinger, Upland.
Law Office of W. Lee Biddle by W. Lee Biddle, San Diego.
- Attorney for the Defendant:
Peter Law Group by Arnold Philimon Peter and Eyal Farahan, El Segundo.
The Experts
- Plaintiff's Technical Expert(s):
Nicholas Briscoe, MS, CVA, CEA, CFE, damages and civil penalties.
Michael Miscoe, JD, CPC, CASCC, CUC, CCPC, CPCO, CPMA, CEMA, chiropractic coding and billing.
- Defendant's Technical Expert(s):
William Buckley, MBA, damages and civil penalties.
Samuel A. Collins. chiropractic coding and billing.
Facts and Background
- Facts and Background:Trial was brought by plaintiff individually and under PAGA on behalf of 16 aggrieved massage therapists misclassified as independent contractors by an integrated health clinic.
- The time period of the claimed Labor Code violations for the individual plaintiff was July 2016 - July 2020. The PAGA claim cited a one-year penalties period from April 2019 to April 2020.
- Plaintiff's Contentions:Misclassification, overtime, meal/rest breaks, wage theft, unreimbursed business expenses.
- Defendant's Contentions:That plaintiff and other aggrieved employees were properly classified as independent contractors.
Demands and Offers
- Defendant §998 Offer: $250,000 made on 4/11/2023
Additional Notes
Defendants Goodlife Physical Medicine Corp. and Dave Carry Chiropractic filed for bankruptcy protection one week before 1/30/2023 original trial date.
Plaintiff's counsel filed for emergency relief from automatic stay, which was granted within weeks of the bankruptcy filing. Trial then commenced on June 27, 2023. Judgment was entered October 11, 2024.
On December 18, 2024, Bankruptcy Judge Sandra R. Klein announced she was denying debtors Goodlife Physical Medicine Corp. and Dave Carry Chiropractic's Motion to Approve Plan or Reorganization and instead ordered a Chapter 7 liquidation, which led to defendants' immediate acceptance of plaintiffs' counsel's earlier settlement terms, including payment of $981,155 judgment within 30 days, payment of $1,329,085 in attorneys' fees (secured by trust deeds on principals' homes), and waiver of all appeals.
Plaintiff's bankruptcy counsel: Misty Perry Isaacson, Pagter & Perry Isaacson, Santa Ana.
Defendants' bankruptcy counsel: Leslie A. Cohen, Leslie Cohen Law PC, Santa Monica.
Subchapter V Trustee: Mark Sharf, appointed by the U.S. Trustee.
Disclaimer
This is not an official court document. While the publisher believes the information to be accurate, the publisher does not guarantee it and the reader is advised not to rely upon it without consulting the official court documents or the attorneys of record in this matter who are listed above.