Frequently Asked Questions

Basic Information

1. What is the Action about?

Plaintiffs brought the Action on behalf of themselves and others who resided at the New Century Inn, a hotel located at 1114 E. Las Tunas Drive, San Gabriel, California 91776 (the “New Century Inn”). In the Action, Plaintiffs allege that Defendant required Plaintiffs and other guests of the New Century Inn to move out, or check out and re-register, before 30 consecutive days of occupancy to avoid guests from gaining protections and rights reserved for tenants who reside in a hotel for 30 or more consecutive days. Plaintiffs allege that Defendant violated California Civil Code sections 1940.1 and 52.1, was negligent, and violated California Business & Professions Code sections 17200, et seq. They seek damages, penalties, attorney’s fees, and litigation costs.

Defendant denies Plaintiffs’ allegations.

2. Why is there a settlement?

The Court has not decided in favor of Plaintiffs or Defendant in the Action. Instead, Plaintiffs and Defendant (the “Parties”) have reached a Settlement to resolve the Action. The Settlement is a compromise reached after good faith, arm’s length negotiations between the Parties, through their attorneys. The Parties agree that the Settlement is fair, adequate, and reasonable. Plaintiffs and Class Counsel also believe the Settlement is in the best interests of others who are similarly situated, such as you. The Court in charge of the Action is the Los Angeles County Superior Court.

The Court must still decide whether to approve the proposed Settlement.

3. Who is included in the Settlement?

The Court has certified the following class (the “Class”):

All persons who resided at the hotel located at 1114 E. Las Tunas Drive, San Gabriel, California 91776, commonly known as the “New Century Inn,” and were required to move out, or to check out and re-register, after 21 or more consecutive days of occupancy at any time from January 30, 2019, through April 10, 2025.

4. What if I am still not sure whether I am part of the Settlement?

If you are not sure whether you are included, call (833) 296-0950 or contact Class Counsel, whose contact information is provided below.

5. What are the Settlement terms?

Subject to approval of the Court, $400,000.00 (“Gross Settlement Amount”) will be paid on behalf Defendant and cover the following: (1) individual payments to members of the Class who do not opt out of the Class (“Class Members”); (2) the Court-approved incentive awards to Plaintiffs; (3) the Court-approved attorney’s fees and costs to Class Counsel; and (4) the costs of administering the Settlement.

1. Payments to Class Members

After deduction from the Gross Settlement Amount for attorneys’ fees and costs, the incentive awards to Plaintiffs, and the costs of administering the Settlement, there will be a Net Settlement Amount. Each Class Member will receive payment of a pro rata share of the Net Settlement Amount depending on the number of “Qualifying Stays.” “Qualifying Stay” means a stay of between 21 and 30 consecutive days at the New Century Inn from January 30, 2019, through April 10, 2025 (the “Class Period”). The pro rata share of each Class Member will be calculated by (1) dividing the Net Settlement Amount by the total number of Qualifying Stays reflected in Defendant’s business records and (2) then multiplying that amount by the number of Qualifying Stays of the respective Class Member.

Your settlement check will be sent to the same address as the Notice. If a settlement check remains uncashed after 180 calendar days of issuance, the check will be void and the funds will be paid to Habitat for Humanity of Greater Los Angeles, a mutually agreeable Cy Pres organization serving low-income or unhoused people in the greater Los Angeles County area. In such event, the Class Member will remain bound by the terms of the Settlement and all Court orders.

2. Attorney’s Fees and Costs, Incentive Award, and Settlement Administration Costs

Class Counsel will ask the Court to award reasonable attorney’s fees of up to $200,000.00 and costs up to $5,000.00 not including settlement administration costs. In addition, Class Counsel will ask the Court to authorize an incentive award of up to $3,000.00 to each Plaintiff for Plaintiffs’ efforts in prosecuting the Action on behalf of the Class. The Parties estimate the cost of administering the Settlement will total approximately $6,000.00. Any amount not awarded by the Court will be included in the Net Settlement Amount and will be distributed to Class Members as set forth above.

6. What are you giving up if you stay in the Class?

Unless you exclude yourself, you will be part of the Class. As a Class Member, you would release Defendant from any claims set forth below, and you could not sue Defendant for such claims. You would also be bound by any decisions made by the Court.

A word-for-word copy of the release from the Stipulation of Settlement, which is available here, is copied below:

Class Members who have timely and validly opted out of the Class do not release their claims and will not obtain any benefit from the Settlement.

7. What are your options regarding the Settlement?

You have three options under this Settlement, each of which is discussed below:

1. Do Nothing

You may do nothing, if you wish. If you do nothing, you will receive a payment for your portion of the monetary award, subject to the Court’s Final Approval of the Settlement. You will also be bound by all terms of the Settlement (including the release of claims), any Final Approval Order, and any Final Judgment entered in this Action.

2. Exclude Yourself from the Settlement

You may exclude yourself from receiving a share of the settlement proceeds by submitting a timely and valid written request to opt-out to the Settlement Administrator (at the address shown in FAQ 11). To be valid, the opt-out form must set forth (a) the requestor’s full name and current address; (b) a request to be excluded from the Settlement; (c) the requestor’s signature; and (d) the case name and case number of the Action. The Request to Opt-Out Form, enclosed with the Notice, can be used to request exclusion from the Settlement. By submitting an opt-out form, you are requesting exclusion from the Class. To be timely, the opt-out form must be mailed to the Settlement Administrator, postmarked by no later than June 14, 2025. If you timely and validly opt out, you will not be eligible to receive any compensation under the Settlement, you will not be bound by the Settlement, and you will have no right to object to the Settlement or participate in the Final Approval Hearing.

Class Members who fail to submit a valid and timely written request for exclusion will be bound by the Settlement (including the release of claims), any Final Approval Order, and any Final Judgment entered in this Action.

3. Object to the Settlement

You may object to the proposed Settlement if you do not agree with the Settlement or any of its terms, such as the number of your Qualifying Stays. If you wish to object to the Settlement, you must file with the Court and serve on the Settlement Administrator (at the address shown in FAQ 11), a written objection no later than June 14, 2025; it must be postmarked by no later than June 14, 2025. The written objection must state (a) the objector’s full name and current address; (b) the basis for the objection along with any documents that support the objection; (c) the objector’s signature; and (d) the case name and case number of the Action.

You can only object if you stay in the Class. If you object to the Settlement, you still remain a Class Member and you still remain eligible to receive a share of the settlement proceeds.

8. Who are the attorneys representing the Parties?

The contact information for the attorneys representing the Parties in the Action are as follows:

9. When and where will the Court decide whether to approve the Settlement?

The Court will hold a Final Approval Hearing regarding the Settlement on August 25, 2025, at 10 a.m. before the Honorable David S. Cunningham III in Department 11 of the Los Angeles County Superior Court of California, Spring Street Courthouse, located at 312 N. Spring Street, Los Angeles, California 90012. At the hearing, the Court will determine whether the proposed Settlement should be finally approved as fair, reasonable, and adequate. The Court will also be asked to approve the request of Class Counsel for attorney’s fees and costs and the incentive awards to Plaintiffs. If there are objections, the Court will consider them. The Court may continue the Final Approval Hearing without further notice to the Class Members.

If the Court approves the Settlement, there may be appeals. It is always uncertain whether appeals will be filed and, if so, how long it will take to resolve them. Settlement payments will be distributed to Class Members after the Court grants final approval to the Settlement.

You are not required to attend the hearing. But you are welcome to attend the hearing at your own expense. If you attend, you may ask the Court for permission to speak at the hearing. You may attend the hearing by telephone or video conference. For more information about remote appearances at the Los Angeles County Superior Court, please visit the “Access LA Court Your Way” webpage at www.lacourt.org.

10. What if your address changes?

It is your responsibility to inform the Settlement Administrator of your correct address. If your address is different from the address on the envelope that contained the Notice, please send any change of address along with your name, birth date, and former address to the Settlement Administrator at the address listed below.

11. How do I get more information?

For more information regarding the Settlement, you may visit the Important Documents page or call the toll-free number (833) 296-0950.

You may also contact Class Counsel at the addresses and telephone numbers provided in FAQ 8. Your communications with Class Counsel regarding the Action will be confidential.

You may also contact the Settlement Administrator at

New Century Inn Settlement Administrator
PO Box 25226
Santa Ana, CA 92799

DO NOT CONTACT THE COURT REGARDING THE SETTLEMENT. THE COURT IS NOT ABLE TO PROVIDE ANY INFORMATION OR ADVICE REGARDING THE SETTLEMENT.