Destiny Corbin v. Life Care Centers of America, Inc.
Summary
The Court of Appeals of Washington reversed a superior court dismissal in a class action case, holding that a prior settlement agreement between Life Care Centers of America and absent class members only released COVID-19 testing and screening claims under the Washington Minimum Wage Act, not unrelated meal break violation claims. The court applied the principle that settling parties' intent controls the preclusive effect of class action settlement agreements. The case was remanded for further proceedings.
What changed
The Court of Appeals reversed the superior court's dismissal, holding that claim preclusion did not bar absent class members from pursuing meal break violation claims under the Washington Minimum Wage Act. The court reasoned that the Atkinson settlement parties intended to release only claims arising from unpaid COVID-19 testing and screening time, not unrelated wage violations. The settlement agreement's language and the parties' intent control the scope of preclusion in class action settlements.
Healthcare employers and their legal counsel should review this decision when drafting or interpreting class action settlement agreements. Settling parties must ensure settlement agreements explicitly address the full scope of claims being released to achieve complete preclusion. Absent class members may retain the right to pursue claims not explicitly covered by the settlement agreement's terms.
What to do next
- Review existing class action settlement agreements to ensure all released claims are clearly defined
- Assess whether current settlement language adequately addresses all potential wage claims
- Monitor for related litigation applying this settlement scope precedent
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Apr 14, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
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April 13, 2026 Get Citation Alerts Download PDF Add Note
Destiny Corbin, V Life Care Centers Of America, Inc.
Court of Appeals of Washington
- Citations: None known
Docket Number: 88134-5
Lead Opinion
IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
DESTINY CORBIN, an individual, and
MELANIE ANDREWS, an individual, No. 88134-5-I
on behalf of themselves and others
similarly situated, DIVISION ONE
Appellant, PUBLISHED OPINION
v.
LIFE CARE CENTERS OF AMERICA,
INC., a Tennessee corporation,
Respondent.
BIRK, J. — Destiny Corbin and Melanie Andrews (collectively Corbin) were
absent class members in a class action brought by Lamont Atkinson against Life
Care Centers of America Inc. (Atkinson action).1 The Atkinson parties entered into
a court approved class action settlement agreement resolving claims for unpaid
COVID-19 testing and screening time under the Washington Minimum Wage Act
(MWA), chapter 49.46 RCW. Five days after final approval, Corbin, on behalf of
putative class members who were also absent class members in the Atkinson
action, brought claims against Life Care for unpaid meal break violations under the
MWA. The superior court dismissed Corbin’s complaint, concluding that claim
preclusion2 barred Corbin’s claims because Corbin did not assert them in the
1 King County Superior Court cause no. 22-2-00662-5 SEA.
2 The parties refer to “claim preclusion” as “res judicata.” As the United
States Supreme Court has noted, “claim preclusion” and “issue preclusion” “have
replaced a more confusing lexicon. Taylor v. Sturgell, 553 U.S. 880, 892 n.5, 128
No. 88134-5-I/2
Atkinson action. Because the settling parties’ intent controls the preclusive effect
of a class action settlement agreement, and the parties here intended to release
only claims due to unpaid COVID-19 testing and screening, we reverse and
remand.
I
A
On January 12, 2022, Lamont Atkinson brought putative class action claims
against Life Care for its alleged failure to pay regular and overtime hours to its
employees for testing and screening for COVID-19. Atkinson worked at Life Care
as a certified nursing assistant and alleged he was required to undergo COVID-19
testing and screening without pay. Life Care operates facilities in Washington
where it provides nursing and rehabilitation services.
The Atkinson complaint proposed class certification for two classes: a
screening class, and a testing class. Before the court ruled on the parties’ motions
for and against class certification, Atkinson and Life Care reached a proposed
class settlement. In both the unopposed motions for preliminary and final approval
of class action settlement, the proposed class included “[a]ll Washington State
employees of Defendant who worked for Defendant in the position of non-exempt
hourly worker and who worked at least one shift between February 1, 2020, and
the date of preliminary settlement approval.” The unopposed motion for
S. Ct. 2161, 171 L. Ed. 2d 155 (2008). Claim preclusion describes the rules
formerly known as ‘merger’ and ‘bar,’ while issue preclusion encompasses the
doctrines once known as ‘collateral estoppel’ and ‘direct estoppel.’ ” Id. (citing
Migra v. Warren City Sch. Dist. Bd. of Ed., 465 U.S. 75, 77, n.1, 104 S. Ct. 892, 79
L. Ed. 2d 56 (1984)). For clarity and consistency, we use claim preclusion.
2
No. 88134-5-I/3
preliminary approval and the proposed class settlement agreement contained the
same release language for settlement class members. In the class settlement
agreement, the settlement class members released Life Care from
any and all claims that were or could have been asserted in this
lawsuit for unpaid wages due to allegedly unpaid [COVID-19] testing
and screening relating to the Participating Class Member's
employment with Defendant during the Class Period, including any
and all associated liquidated damages, penalties, attorneys’ fees,
costs, interest, and/or any related sums relating to or arising from
those claims, whether founded on state, federal or local law.
In contrast, the named plaintiff class representatives in Atkinson, Atkinson
and another class representative, agreed to a broader release for their personal
claims. They released Life Care from
all known and unknown claims, promises, causes of action, that they
presently may have relating to disputes of any nature arising out of
their employment with Defendant (including but not limited to those
pursuant to the Fair Labor Standards Act [of 1938, 29 U.S.C., §§ 201 -
219 (FLSA)], Washington Minimum Wage Act, [ch. 49.46 RCW,]
Washington Wage Rebate Act, [RCW 49.52.050,] and any other
federal, state, or local law related to wages, meal periods, or rest
periods), including any related penalties, liquidated damages,
punitive damages, attorney’s fees and/or costs to any of the
Released Parties through the date of preliminary approval by the
Court.
On December 6, 2024, the superior court granted Atkinson’s unopposed
motion for final approval and certified the settlement class as proposed. The court
concluded that the settlement was fair, reasonable, and adequate. The settlement
agreement distributed the settlement amount based upon how many minutes class
members were off the clock when testing and screening. The court ordered that
“all members of the Class: (1) are bound by this Final Judgment; and (2) are forever
3
No. 88134-5-I/4
barred from instituting, maintaining, or prosecuting any claim released by the
Settlement Agreement.”
B
Five days after the court granted final approval to the Atkinson settlement,
on December 11, 2024, Corbin filed a putative class action complaint against Life
Care for its alleged willful failure to provide compensation to class members for
missed meal periods. Corbin proposed a class including “[a]ll hourly, non-exempt
Life Care employees who missed a meal period and were not paid compensation
in addition to the pay for the hours they worked during the meal period at any time
from December 11, 2021 to the date of certification of the class.” Corbin alleged
Life Care failed to ensure class members followed policy and, by understaffing its
locations, prevented staff from taking meal breaks. The same attorneys who
negotiated the Atkinson settlement represent Corbin. Corbin was a member of the
Atkinson settlement class.
Life Care moved to dismiss Corbin’s complaint, arguing it is barred by claim
preclusion. The superior court dismissed Corbin’s complaint. Corbin
unsuccessfully moved for reconsideration and appeals both the orders granting
dismissal and denying reconsideration.3
II
We review rulings on CR 12(b)(6) motions de novo. Tavaglione v.
Dehkhoda & Qadri, PC, 34 Wn. App. 2d 515, 519, 568 P.3d 1158 (2025). The
3 Because we conclude it was error to grant Life Care’s CR 12(b)(6) motion,
we do not separately consider the order denying reconsideration.
4
No. 88134-5-I/5
purpose of a CR 12(b)(6) motion is to “determine if a plaintiff can prove any set of
facts that would justify relief.” P.E. Sys., LLC v. CPI Corp., 176 Wn.2d 198, 203,
289 P.3d 638 (2012). “Under CR 12(b)(6), dismissal is appropriate only when it
appears beyond doubt that the claimant can prove no set of facts, consistent with
the complaint, which would justify recovery.” San Juan County v. No New Gas
Tax, 160 Wn.2d 141, 164, 157 P.3d 831 (2007). “The complaint’s legal
conclusions are not required to be accepted on appeal.” Jackson v. Quality Loan
Serv. Corp., 186 Wn. App 838, 843, 347 P.3d 487 (2015). We review application
of claim preclusion de novo. Carter v. MultiCare Health Sys., 31 Wn. App. 2d 755,
773, 553 P.3d 98 (2024).
A
We first conclude that the settling parties’ intent determines the preclusive
effect of a class action settlement agreement.
This court addressed a similar scenario in Knuth v. Beneficial Washington,
Inc., 107 Wn. App. 727, 31 P.3d 694 (2001). There, the initial action began when
a plaintiff brought putative class claims against a loan servicer, alleging the
servicer improperly charged borrowers demand and reconveyance fees when
borrowers paid off their loans. Id. at 729. Shortly after class certification, the
parties settled, with class members releasing all claims that were or could have
been asserted against the servicer in that action. Id. at 730. Then, a former absent
class member brought putative class claims against the same servicer, alleging
the servicer improperly charged a forwarding fee when borrowers paid off their
loans. Id. In analyzing claim preclusion, this court looked to the settlement release
5
No. 88134-5-I/6
language, to the order certifying the class for the previous action, and to whether
the settlement disposed of the proposed class claims. Id. at 731-33. We said that
the second action impaired rights established in the settlement agreement
because the settlement agreement specifically released the defendant from any
claims that could have been brought by the class at the time. Id. at 732.
In cases not involving class action settlement agreements, Washington
decisions have focused on the intent of the parties when determining the
preclusive effect of a settlement agreement. See Pederson v. Potter, 103 Wn.
App. 62, 73, 11 P.3d 833 (2000) (“If the Pedersons are permitted to pursue their
complaint, they will in effect argue they were not obligated to pay the Potters under
the terms of the sale because of the breach. Yet the settlement and confession of
judgment already established the rights and liabilities of the parties.”); Hadley v.
Cowan, 60 Wn. App. 433, 444-45, 804 P.2d 1271 (1991) (barring subsequent
claims for tortious interference with parent/child relationship where parties had
included the phrase “loving relationship that exists” in a settlement agreement).
The Ninth Circuit identified the rationale undergirding Washington law
limiting the preclusive effect of a class action settlement to the settling parties’
intent in Wojciechowski v. Kohlberg Ventures, LLC, 923 F.3d 685 (9th Cir. 2019).
There, the court analyzed the settlement release language and concluded the prior
class action settlement agreement did not release claims against a defendant that
was not a party to the prior class action. Wojciechowski, 923 F.3d at 690. The
claim preclusion inquiry is modified when the earlier action was dismissed based
on a settlement agreement. Id. at 689. When a court dismisses an action because
6
No. 88134-5-I/7
of a settlement agreement, the settlement is “ ‘stamped with the imprimatur of [a]
court with jurisdiction over the parties and the subject matter of the lawsuit.’ ” Id.
(alteration in original) (quoting Grimes v. Vitalink Commc’ns Corp., 17 F.3d 1553,
1557 (3rd Cir. 1994)). Applying a preclusive effect greater than the parties’
intentions at settlement would undermine the contractual nature of court approved
settlement agreements. Id. at 691. Wojciechowski described this as a general
principle of preclusion law. Id. As described in Knuth, Washington law is in accord.
Thus, “[w]e look to the intent of the settling parties to determine the preclusive
effect of a dismissal with prejudice entered in accordance with a settlement
agreement, rather than to general principles of claim preclusion.” Wojciechowski,
This is especially appropriate for class action settlements binding absent
class members. A class settlement agreement may preclude a party from bringing
a related claim in the future “ ‘even though the claim was not presented and might
not have been presentable in the class action,’ ” but only where the released claim
is “ ‘based on the identical factual predicate as that underlying the claims in the
settled class action.’ ” Summers v. Sea Mar Cmty. Health Ctrs., 29 Wn. App. 2d
476, 504-05, 541 P.3d 381 (quoting Hesse v. Sprint Corp., 598 F.3d 581, 590 (9th
Cir. 2010)), review denied sub nom. Barnes v. Sea Mar Cmty. Health Ctr’s, 3
Wn.3d 1002, 549 P.3d 112 (2024). In class action cases, the courts have an
independent obligation to protect the interests of the class. Deien v. Seattle City
Light, 26 Wn. App. 2d 57, 65, 527 P.3d 102 (2023). As a court has said in the
analogous setting of the FLSA, “[t]he parties have every right to enter into a
7
No. 88134-5-I/8
settlement that waives claims relating to the existing suit in exchange for a
settlement payment. But the Court will not countenance employers using FLSA
settlements to erase all liability whatsoever in exchange for partial payment of
wages allegedly required by statute.” Lopez v. Nights of Cabiria, LLC, 96 F. Supp.
3d 170, 181 (S.D.N.Y. 2015) (rejecting settlement of FLSA collective action among
other reasons because release language was “too sweeping to be ‘fair and
reasonable.’ ”). Courts look to the operative pleadings, class notice, and the
settlement approval process to determine the appropriate scope of a class
settlement.4
B
We interpret settlement agreements as contracts. Condon v. Condon, 177
Wn.2d 150, 162, 298 P.3d 86 (2013). Washington adheres to the objective
manifestation theory of contracts. Hearst Commc’ns, Inc. v. Seattle Times Co.,
154 Wn.2d 493, 503, 115 P.3d 262 (2005). “[W]e attempt to determine the parties’
intent by focusing on the objective manifestations of the agreement, rather than on
4 See McAdams v. Robinson, 26 F.4th 149, 158 (4th Cir. 2022) (“[Federal
Rules of Civil Procedure] 23(e) requires notice that describes the terms of the
settlement in sufficient detail to alert those with adverse viewpoints to investigate
and to come forward and be heard.”); In re TikTok, Inc., Consumer Priv. Litig., 713
F. Supp. 3d 470, 487-88 (N.D. Ill. 2024) (“The language of the Settlement
Agreement, the consolidated complaint, and representations made during the
approval process are all important indica of both the Original Parties’ intent as to
the release and the court’s understanding of that intent at the time of entry of the
final approval order.”); Nunez v. BAE Sys. San Diego Ship Repair, Inc., 292 F.
Supp. 3d 1018, 1047 (S.D. Cal. 2017) (finding the exact factual predicate met
where the class notice of released claims stated “ ‘will be releasing the claims and
causes of action asserted in the operative Complaint on file in the Class Action
between May 27, 2012 and October 13, 2016, or which could have been alleged
based on the facts set forth in the operative Complaint’ ”).
8
No. 88134-5-I/9
the unexpressed subjective intent of the parties.” Id. “We impute an intention
corresponding to the reasonable meaning of the words used.” Id. “We generally
give words in a contract their ordinary, usual, and popular meaning unless the
entirety of the agreement clearly demonstrates a contrary intent.” Id. at 504. We
may interpret particular language of a contract in the context of other contract
provisions. C.A. Carey Corp. v. City of Snoqualmie, 29 Wn. App. 2d 890, 907, 547
P.3d 247, review denied, 3 Wn.3d 1012, 554 P.3d 1219 (2024). Washington courts
also consider the “context surrounding an instrument’s execution.” Hearst
Commc’ns, 154 Wn.2d at 502. If relevant for determining mutual intent, including
the meaning of specific words and terms used, extrinsic evidence may include (1)
the subject matter and objective of the contract, (2) all the circumstances
surrounding the making of the contract, (3) the subsequent acts and conduct of the
parties, and (4) the reasonableness of respective interpretations urged by the
parties. Id. at 502-03.
The Atkinson settlement manifests the parties’ intent to settle class claims
regarding Life Care’s COVID-19 testing and screening practices. For release of
claims, the parties agreed the named-party class representatives would release
any and all claims “that they presently may have” “related to wages, meal periods,
or rest periods” without mention of COVID-19 testing and screening. More
narrowly, the absent class members released “any and all claims that were or
could have been asserted in this lawsuit for unpaid wages due to allegedly unpaid
[COVID-19] testing and screening,” but gave no release referencing meal periods.
The settlement provides that the absent class members will be paid for “Minutes
9
No. 88134-5-I/10
Off-the-Clock,” defined as “the sum of Screening Minutes and Testing Minutes for
each Settlement Class Member.” The settlement includes definitions for
“Screening Class Period,” “Testing Class Period,” “Screening Shift,” “Testing
Workweek,” “Screening Minutes,” and “Testing Minutes,” but it does not include
any definitions for meal breaks, meal periods, or other employment claims.
The amended complaint proposed two classes, a “Screening Class” and a
“Testing Class,” who were comprised of members “instructed not to clock into Life
Care’s electronic time keeping system prior to daily screening” and “who were
subject to Life Care’s mandatory [COVID-19] testing policy,” respectively. It
alleged the predominating questions of law and fact common to the proposed class
included, “[w]hether Life Care requires employees to undergo [COVID-19]
screening during their shift without compensation” and “whether Life Care requires
employees to undergo weekly [COVID-19] testing but does not compensate them
unless the testing occurs during the employee’s regularly scheduled shift.”
In the unopposed motion for preliminary approval of settlement, the parties
agreed that the settlement amount would be distributed to class members “based
proportionally on the number of allegedly unpaid minutes estimated to have been
spent testing and screening.” Then, the motion for final approval of the settlement
stated that class members will be paid for “Minutes Off-the-Clock,” which the
parties defined as “the sum of Screening Minutes and Testing Minutes for each
Settlement Class Member.” The motion further stated that if the parties did not
settle, the Atkinson plaintiffs would face increased uncertainty in summary
judgment motions practice surrounding the commonality of class members’
10
No. 88134-5-I/11
experiences “due to differences in testing and screening practices.” The class
members’ release was specifically limited—in contrast to the named-plaintiff class
representatives release—to extend only to claims for COVID-19 testing and
screening, and these were the only claims described in the operative complaint,
class notice, and motions for preliminary or final approval.
The operative release language covered “claims that were or could have
been asserted in this lawsuit for unpaid wages due to allegedly unpaid [COVID-
19] testing and screening relating to the Participating Class Member's
employment.” Life Care argues that the phrase “for unpaid wages due to allegedly
unpaid [COVID-19] testing and screening relating to Participating Class members’
employment” modifies the term “lawsuit” and does not modify “claims.” From this
premise, Life Care reasons that the release extends to claims relating to the class
members’ employment that were or could have been brought in the lawsuit for
unpaid wages due to allegedly unpaid COVID-19 testing. Life Care’s interpretation
of the “for” phrase modifying lawsuit and not claims is grammatically possible—the
“for” phrase could be read in a limited way to modify exclusively “lawsuit.” But this
reading is not reasonable under the circumstances. Under Life Care’s reading, the
description of the released claims is no more specific than those that could have
been brought in the lawsuit and relate to the class members’ employment. In the
context of the settlement on behalf of absent class members, the “for” clause
describes which “claims” are released, in this case coinciding with the claims
asserted in the complaint, described in the class notice, subject to the array of
defined terms in the settlement, and analyzed in the motions for settlement
11
No. 88134-5-I/12
approval. Those documents describe exclusively claims based on COVID-19
testing and screening. Moreover, this scope of release falls clearly within the
identical factual predicate supported by the operative pleadings, class notice, and
motions for settlement approval. Summers, 29 Wn. App. 2d at 504-05.
We conclude the parties intended that the absent class members release
only claims for unpaid COVID-19 testing and screening. As a result, the Atkinson
settlement does not have preclusive effect barring Corbin’s claims for allegedly
uncompensated missed meal periods.
Reversed and remanded.
WE CONCUR:
12
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