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9 July 2026

After 19 Years Of Litigation(!) And A $43 Million Award, Judgment In Escrow Officer Wage Case Is Largely Reversed

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A California Court of Appeal reversed a $43 million judgment in a misclassification case, finding the trial court committed multiple prejudicial errors in handling class certification and trial procedures. The appellate court criticized the trial court's approach to representative testimony, affirmative defenses, and the appointment of a referee without party consent, while also addressing proper calculation methods for PAGA penalties in a related case.
United States Employment and HR
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Cortina v. North Am. Title Co., 2026 WL 1506576 (Cal. Ct. App. 2026)

In this 137-page opinion, which the Court of Appeal noted involves an even more “rare and beastly case” than Duran v. U.S. Bank Nat’l Ass’n, 59 Cal. 4th 1 (2014), the Court held that the trial court committed multiple prejudicial errors, including permitting a trial plan and format that contravened the holdings of Duran; rejecting the employer’s affirmative defenses “out of hand” on a class wide basis; eliciting “representative testimony” from just 15 percent of the cohort of allegedly misclassified employees; failing to decertify the “exempt” class of employees based upon an unworkable trial plan; and appointing a referee to conduct a second phase of trial without the parties’ consent and over “defendant’s strenuous objections,” leading to a $43 million judgment. See also Taduran v. James R. Glidewell, Dental Ceramics, Inc., 2026 WL 1894062 (Cal. Ct. App. 2026) (trial court properly reduced PAGA penalties on a per-employee rather than a per-pay period basis and properly reduced the prevailing-party attorney’s fees amount while applying a negative modifier (0.7) to the lodestar amount).

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