Overton v. Hat World, Inc.
Filing
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ORDER signed by Judge Lawrence K. Karlton on 4/24/2012 GRANTING preliminary approval of plaintiff's 24 Motion to Certify Class Action Settlement, conditionally certifying settlement class and subclass. (Marciel, M)
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UNITED STATES DISTRICT COURT
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EASTERN DISTRICT OF CALIFORNIA
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BETH OVERTON, on behalf of herself and
all others similarly situated, and on behalf of
the general public,
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Plaintiffs,
vs.
HAT WORLD, INC., a Minnesota
corporation,
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CASE NO.: 2:11-CV-01645-LKK-KJN
ORDER GRANTING PRELIMINARY
APPROVAL OF CLASS ACTION
SETTLEMENT, CONDITIONALLY
CERTIFYING A SETTLEMENT CLASS
AND SUBCLASS, APPROVING FORM OF
NOTICE TO THE CLASS AND SETTING
HEARING ON FINAL APPROVAL OF
SETTLEMENT
Defendants.
DATE: April 23, 2012
TIME: 10:00 A.M.
COURTROOM: 4
JUDGE: Hon. Lawrence K. Karlton
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ORDER GRANTING PRELIMINARY APPROVAL OF SETTLEMENT
DB2/ 23026543.1
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On April 23, 2012, at 10:00 a.m., the Court, the Honorable Lawrence K. Karlton
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presiding, conducted a hearing regarding the motion brought by Plaintiff Beth Overton (“Class
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Representative”) for Preliminary Approval of Class Action Settlement, Conditionally Certifying a
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Settlement Class, Approving Form of Notice to the Class, and Setting Hearing on Final Approval
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of Settlement. The parties appeared by and through their respective counsel of record.
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After considering the papers and the arguments of counsel, and good cause appearing, IT
IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:
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For purposes of this Order, the Court adopts and incorporates all definitions set
forth in the Joint Stipulation of Settlement and Release (“Settlement Agreement”).
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The Court finds that the requirements of Rule 23 of the Federal Rules of Civil
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Procedure and other laws and rules applicable to preliminary settlement approval of class actions
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have been satisfied, and the Court preliminarily approves the settlement of this Action as
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memorialized in the Settlement Agreement, which is incorporated herein by this reference, as
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being fair, just, reasonable and adequate to the settlement Class and its members, subject to
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further consideration at the Final Fairness and Approval Hearing described below. Based on a
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review of the papers submitted, the Court finds that the Settlement is the result of extensive arms-
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length negotiations conducted after Class Counsel had adequately investigated the claims and
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became familiar with the strengths and weaknesses of those claims, is recommended by Class
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Counsel, and is thus presumptively valid, subject only to any objections that may be raised at the
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final fairness hearing and final approval by this Court. The assistance of an experienced mediator
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in the settlement process supports the Court’s conclusion that the Settlement is non-collusive.,
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The Court thus hereby:
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(a) Conditionally certifies solely for the purpose of implementing the Settlement
Agreement the Class and Subclass defined the Settlement Agreement;
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(b) Appoints Plaintiff Beth Overton as the representative of the Class and
Subclass; and
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ORDER GRANTING PRELIMINARY APPROVAL OF SETTLEMENT
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(c) Appoints Gaines & Gaines, APLC, Law Offices of Scott A. Miller, APC, and
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Steven L. Miller, APLC as attorneys for the Class and Subclass for purposes of settlement and
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finds for the purposes of settlement that these attorneys are qualified to represent the Class.
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3.
It is ordered that Class and Subclass in the Settlement Agreement are preliminarily
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certified for settlement purposes only. If the Settlement does not become final for any reason, the
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fact that the Parties were willing to stipulate to class action certification as part of the Settlement
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shall have no bearing on, and will not be admissible in connection with, the issue of whether a
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class or collective in this action should be certified in a non-settlement context. The Court’s
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findings are solely for purposes of conditionally certifying a Settlement Class and will not have
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any claim or issue or evidentiary preclusion or estoppel effect in any other action against the
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Defendant, or in this litigation if the Settlement is not finally approved.
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4.
A hearing (the “Final Fairness and Approval Hearing”) shall be held on September
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4, 2012, at 10:00 a.m. before the Honorable Lawrence K. Karlton, in Courtroom 4 of the United
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States District Court for the Eastern District of California, located at 501 “I” Street, Sacramento,
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California 95814. At that time, the Court shall determine: (a) whether the proposed settlement of
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the Action on the terms and conditions provided for in the Settlement Agreement is fair, just,
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reasonable and adequate and should be finally approved; (b) whether judgment as provided in the
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Settlement Agreement should be entered herein; and (c) whether to approve Class Counsel’s
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application for an award of attorneys’ fees and costs, Plaintiff’s application for a service
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enhancement and general release payment, and Plaintiff’s request for payment of expenses to the
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Claims Administrator. The Court may continue or adjourn the Final Fairness and Approval
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Hearing without further notice to members of the Class.
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5.
The Court approves, as to form and content, the Class Notice attached to the
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Settlement Agreement as Exhibit 1 and the Claim Form attached to the Settlement Agreement as
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Exhibit 2. The Court finds that distribution of the Class Notice in the manner set forth in this
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Order and the Settlement Agreement constitutes the best notice practicable under the
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circumstances, and constitutes valid, due and sufficient notice to all members of the Class,
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complying fully with the requirements of Rule 23 of the Federal Rules of Civil Procedure, the
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ORDER GRANTING PRELIMINARY APPROVAL OF SETTLEMENT
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Constitution of the United States, and any other applicable laws. The Class Notice set forth
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herein and in the Settlement Agreement provides a means of notice reasonably calculated to
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apprise the Class Members of the pendency of the action and the proposed settlement, and
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thereby meets the requirements of Rule 23(c)(2) of the Federal Rules of Civil Procedure, as well
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as due process under the United States Constitution and any other applicable law, and shall
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constitute due and sufficient notice to all Class Members entitled thereto.
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6.
The Court approves the selection of Rust Consulting, Inc. as the Claims
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Administrator.
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Settlement Agreement, including, but not limited to, distributing and providing the Class Notice,
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calculating claims against the Settlement Amount, preparing and issuing all disbursements of the
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Settlement Amount to Qualified Claimants, and handling inquiries about the calculation of the
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individual Settlement Amounts.
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7.
The Claims Administrator will administer the applicable provisions of the
No later than twenty-one (21) days after the date of this Order, Hat World shall
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provide the Claims Administrator with the names, contact information, Social Security Numbers,
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and dates of employment for members of the Class.
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No later than fourteen (14) days after receipt of the Class List, the Claims
Administrator shall mail the Class Notice to Class Members.
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To be valid, Class members must submit a fully completed and signed Claim Form
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to the Claims Administrator, postmarked no later than forty-five (45) days after Class Notice is
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initially mailed to Class Members.
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10.
Any person may request to be excluded from the Class by mailing a request for
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exclusion by first class mail to the Claims Administrator as provided in the Class Notice. Any
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such request will be timely only if postmarked no later than forty-five (45) days after the Class
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Notice is initially mailed to Class Members.
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11.
The Parties are ordered to carry out and proceed with the Settlement according to
the terms of the Settlement and this Order.
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Class Counsel shall file a motion for final approval of settlement no later than
eighty-seven (87) days after the date of entry of this Order. Any request by Class Counsel for an
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ORDER GRANTING PRELIMINARY APPROVAL OF SETTLEMENT
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award of attorneys’ fees or reimbursement of expenses shall be filed concurrently, and that
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request shall be accompanied by supporting evidence.
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13.
Any Class Member who does not request exclusion from the Settlement may
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object to the approval of the Settlement or the award of attorneys’ fees and reimbursement of
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expenses to Class Counsel. Any such objection will be timely only if filed with the Court and
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served upon Class Counsel, Defense Counsel, and the Claims Administrator, as provided in the
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Class Notice, no later than ninety-four (94) days after the date of entry of this Order.
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14.
Any Class Member who has filed and served such written objections may, but is
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not required to, appear himself or herself, or through counsel, at the Final Fairness and Approval
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Hearing and object to the approval of the Settlement or the award of attorneys’ fees and
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reimbursement of expenses to Class Counsel. No Class Member, or any other person, shall be
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heard or entitled to contest the approval of the proposed Settlement, the judgment to be entered
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approving the same, or the award of attorneys’ fees and reimbursement of expenses to Class
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Counsel, unless that Class Member has filed and served written objections in the manner set forth
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herein.
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Members no later than the latter of (1) one hundred eight (108) days after the date of entry of this
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Order, or (2) ten (10) days prior to the Final Fairness and Approval Hearing, whichever date is
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later.
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The Parties may file any response to the objections submitted by objecting Class
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Any Class Member who does not file and serve his or her objection(s) in the
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manner so provided herein and in the Class Notice shall be deemed to have waived such
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objection(s) and shall forever be foreclosed from making any objection(s) to the fairness or
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adequacy of the proposed Settlement as incorporated in the Settlement Agreement and the award
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of attorneys’ fees and reimbursement of expenses to counsel and the right to appeal any orders
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that are entered relating thereto, unless otherwise ordered by the Court.
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16.
To the extent permitted by law, pending final determination as to whether the
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Settlement contained in the Settlement Agreement should be approved, any pending actions
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against the Defendant, that assert any claims which fall within the definition of the Class Member
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Released Claims are stayed on an interim basis pending a final determination as to approval of the
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Settlement.
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In the event the Settlement is not finally approved, or otherwise does not become
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effective in accordance with the terms of the Settlement Agreement, this Order of Preliminary
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Approval shall be rendered null and void and shall be vacated, and the Parties shall revert to their
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respective positions as of before entering into the Settlement Agreement.
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18.
The Court reserves the right to adjourn the date of the Final Fairness and Approval
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Hearing and any adjournment thereof without further notice to the members of the Class, and
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retains jurisdiction to consider all further applications arising out of or connected with the
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settlement. The Court may approve the settlement, with such modifications as may be agreed to
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by the Parties to the settlement, if appropriate, without further notice to the Class.
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IT IS SO ORDERED.
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Dated: April 24, 2012.
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DB2/ 23026543.1
ORDER GRANTING PRELIMINARY APPROVAL OF SETTLEMENT
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