Hochstetler et al v. Pacific Gateway Concessions LLC

Filing 67

ORDER re: Cy Pres Recipient Letter Dated May 4, 2017. Signed by Judge Thelton E. Henderson on 5/16/17. (tehlc2, COURT STAFF) (Filed on 5/16/2017)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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RACHEL HOCHSTETLER, et al.,
Plaintiffs,

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v.
PACIFIC GATEWAY CONCESSIONS
LLC,

Case No. 14-cv-04748-TEH
ORDER RE: CY PRES RECIPIENT
LETTER DATED MAY 4, 2017

Defendant.
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In June 2016, the Court granted the Parties’ Motions for Final Approval of Class

United States District Court
Northern District of California

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Action Settlement (“Settlement”). ECF No. 57. This Settlement required Defendant

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Pacific Gateway Concessions (“PGC”) to distribute any residual funds from the Settlement

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Fund to the cy pres recipient, Consumers Union, in the form of PGC Gift Cards. Id. ¶18.

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The Court explicitly “retain[ed] continuing jurisdiction to interpret, implement and enforce

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the Settlement, and all orders and judgment entered in connection therewith. Id ¶20.

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Pursuant to the Settlement, Consumers Union received a cy pres distribution of

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$793,000 in the form of 7,993 gift cards worth $100 each. On March 17, 2017, the Court

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received a letter from Consumers Union alleging that upon calling the twenty-nine stores

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listed in the class action settlement (“Included Stores”), several of them stated they would

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not accept the gift cards. Consequently, the Court issued an Order on April 5, 2017

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directing Defendant to submit a declaration attesting to PGC’s efforts in ensuring the

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“full[] and complete[]” resolution of this problem. ECF No. 60. In response, Defendant

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filed three declarations, including one from PGC’s Information Technology Manager and

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one from PGC’s President and Chief Executive officer, affirming that PGC had taken

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several steps to resolve the problem including, holding a conference call with general

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managers, posting PGC’s written policy regarding the use of Gift Cards at Included Stores,

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and establishing a toll-free number that PGC employees can call to address questions or

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concerns regarding Gift Cards. ECF Nos. 61–63.

Despite the recent declarations from PGC, the Court is now in receipt of another

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letter from Consumers Union dated May 4, 2017 stating that it recently called all of the

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Included Stores only to be told by several of them that they do not accept the gift cards or

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that the gift cards are only good for one transaction. ECF No. 65. The Court is deeply

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troubled and agitated to discover that the problem has not been “fully and completely

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resolved,” as represented by PGC in its most recent declarations. Accordingly, Defendant

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is hereby ORDERED to file with the Court a full and complete explanation as to what

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actions it will take to finalize the resolution of this matter. The declaration shall be

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submitted no later than 10 calendar days from date of this Order. Failure to submit the

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declaration or to address the problem may result in the setting aside of the Class Action

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United States District Court
Northern District of California

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Settlement.

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IT IS SO ORDERED.

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Dated: 5/16/17

_____________________________________
THELTON E. HENDERSON
United States District Judge

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