Mast v. Go 2 Transportation LLC, et al.

Filing 181

ORDER no later than February 1, 2019, the parties shall file a supplement addressing the proper disposition of unclaimed funds. Signed by Senior Judge Roslyn O Silver on 1/25/19. (CLB)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE DISTRICT OF ARIZONA

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Vernon Mast, et al.,
Plaintiffs,

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ORDER

v.

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No. CV-16-01022-PHX-ROS

Go 2 Transportation LLC, et al.,

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Defendants.

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The parties seek preliminary approval of a proposed settlement agreement. (Doc.

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180). The Court will require the parties file an explanation regarding one provision of their

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agreement.

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The proposed settlement agreement establishes a fund for distribution to class

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members. If a class member cannot be located, or if a settlement check is not cashed, there

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may be unclaimed funds. The agreement specifies any unclaimed funds “shall be sent to

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the State of Arizona Department of Revenue, Unclaimed Property Unit.” (Doc. 180-1 at

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11). The parties will be required to explain whether this provision is appropriate.

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In their explanation, the parties should address which law would apply to the

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distribution of unclaimed funds. Compare Ethan D. Millar & John L. Coalson, Jr., The Pot

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of Gold at the End of the Class Action Lawsuit: Can States Claim It As Unclaimed

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Property?, 70 U. Pitt. L. Rev. 511 (2009) (concluding “in a federal court class action,

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federal law rather than state law should apply to the disposition of unclaimed settlement

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proceeds under Federal Rule of Civil Procedure 23, the Erie doctrine, and other

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authorities”) with All Plaintiffs v. All Defendants, 645 F.3d 329, 337 (5th Cir. 2011)

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(holding Texas law applied to unclaimed funds in class action context). If the parties

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believe Arizona law would apply, they must explain why that would be true for a class

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member whose last known address is not in Arizona. Moreover, if the parties believe

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Arizona law would apply, they should address whether sending unclaimed funds to Arizona

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is the best, or at least the most reasonable, use of those funds. Cf. Six Mexican Workers v.

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Arizona Citrus Growers, 904 F.2d 1301, 1307 (9th Cir. 1990) (discussing permissible uses

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of unclaimed funds in class action context).

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Finally, should the Court preliminarily approve the settlement, class counsel will be

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required to file the motion for attorneys’ fees before the deadline for class members to

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submit objections. See In re Mercury Interactive Corp. Sec. Litig., 618 F.3d 988, 993 (9th

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Cir. 2010) (requiring filing of motion for attorneys’ fees before deadline for objections).

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Accordingly,

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IT IS ORDERED no later than February 1, 2019, the parties shall file a

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supplement addressing the proper disposition of unclaimed funds.
Dated this 25th day of January, 2019.

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Honorable Roslyn O. Silver
Senior United States District Judge

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