Leo’s Motel $500,000 Occupancy Class Action Settlement

Individuals who stayed at Leo’s Motel in Lomita, California, for 21 to 30 consecutive days at any time between March 28, 2019, and Oct. 29, 2025, may be eligible to claim a cash payment from a class action settlement.

1879 Lomita LLC, doing business as Leo’s Motel, along with Arvinda R. Patel and Ramesh N. Patel, agreed to pay $500,000 to settle a class action lawsuit alleging it required guests to move out or check out and reregister before reaching 30 consecutive days of occupancy in violation of California law.

Who are the class members?

The class includes:

• Anyone who stayed at Leo’s Motel located at 1879 Lomita Blvd., Lomita, California 90717
• Anyone required to move out or check out and reregister after 21 or more consecutive days of occupancy
• Anyone whose stay occurred at any time from March 28, 2019, through Oct. 29, 2025

Each stay of 21 to 30 consecutive days counts as a “qualifying stay” for purposes of determining the settlement share.

The settlement administrator used the defendants’ business records to identify class members and sent them notices. Those who did not receive a notice but believe they qualify may still be able to participate by providing proof of their qualifying stay.

How much can class members receive?

The total settlement fund is $500,000. The settlement administrator will distribute payments to class members on a pro rata basis after deductions for attorneys' fees and costs, settlement administration fees and the plaintiff incentive award.

The settlement bases pro rata shares on the number of qualifying stays each class member had at Leo’s Motel during the class period. It assigns each qualifying stay a share. The administrator will determine the amount per stay by dividing the net settlement amount by the total number of qualifying stays to determine the amount per stay.

If there are fewer qualifying stays, the payment per stay will be higher; if there are more, the payment per stay will be lower.

No claim form required

Class members do not need to file a claim to receive your payment. The settlement administrator will automatically send their payment to the address on file.

To update their address, class members can contact the settlement administrator at info@leosmotelsettlement.com, 888-251-7147 or Simpluris Inc., P.O. Box 25226, Santa Ana, CA 92799.

Those who did not receive a notice but believe they qualify must contact the settlement administrator and provide proof of their qualifying stay. This includes one of the following:

• A copy of a registration card from Leo’s Motel showing a stay of 21 to 30 consecutive days
• A sales receipt from the hotel for such a stay
• A declaration under penalty of perjury that they stayed for 21 to 30 consecutive days along with another form of proof that they stayed at the hotel for at least one day

Class members who wish to opt out must mail a completed opt-out form to the settlement administrator by April 25, 2026.

Payout options

The settlement administrator will automatically mail checks to the addresses it has on file (the addresses it mailed the settlement notices to) unless the class member notified the administrator of an address change. Class members have 180 days to cash the check. After that time, the settlement administrator will donate the funds to Habitat for Humanity of Greater Los Angeles.

$500,000 settlement fund breakdown

The settlement fund of $500,000 will cover:

• Settlement administration costs: Approximately $10,000
• Attorney’s fees: Up to $175,000
• Attorney’s expenses: Up to $12,000
• Service award to class representative: Up to $3,000
• Payments to eligible class members: Approximately $300,000 (remaining net settlement amount)

If the court awards less than the maximum for attorney’s fees, costs or the incentive award, the settlement administrator will add the difference to the net settlement amount for class members.

Important dates

• Opt-out deadline: April 25, 2026
• Final approval hearing: July 8, 2026

When is the Flores v. Leo’s Motel payout date?

The settlement administrator will distribute payments approximately 13 days after the court resolves any appeals and grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged Leo’s Motel required guests to move out or check out and reregister before 30 consecutive days of occupancy, violating California Civil Code sections 1940.1 and 52.1, as well as California Business & Professions Code sections 17200 et seq.

The defendants denied wrongdoing but agreed to settle to avoid the cost and uncertainty of further litigation.

Sources

1. Class notice
2. Stipulation of settlement document
3. Settlement FAQ
4. Important dates