Freitas et al v. Bounceback, Inc. et al

Filing 49

STIPULATION AND ORDER to Stay Matter Pending Final Approval of Class Action Settlement. Signed by Judge Richard Seeborg on 3/16/16. (cl, COURT STAFF) (Filed on 3/16/2016)

1
2
3
4
5
6

Michael F. Ram, CSB #104805
Email: [e-mail]
Karl Olson, CSB #104760
Email: [e-mail]
Susan S. Brown, CSB #287986
Email: [e-mail]
RAM, OLSON, CEREGHINO & KOPCZYNSKI
555 Montgomery Street, Suite 820
San Francisco, California 94111
Telephone: [phone]
Facsimile: [phone]

7
8
9

[Additional Counsel Appear on Signature Page]
Attorneys for Plaintiffs
UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF CALIFORNIA
SAN FRANCISCO DIVISION

10
11
12
13

ANGELINA FREITAS, REBECCA LYON and
MARESA KENDRICK, on their own behalf and
on behalf of others similarly situated,

14
Plaintiffs,
15
16
17
18
19

v.
Complaint Filed: August 3, 2015
BOUNCEBACK, INC., a Missouri
corporation, CHECK CONNECTION, INC., a
Kansas corporation, STONE FENCE
HOLDINGS, INC., a Missouri corporation,
and GALE KRIEG,

20

Honorable Richard Seeborg
DEMAND FOR JURY

Defendants.

21
22

NO. 3:15-cv-03560-RS
ORDER
STIPULATION TO STAY MATTER
PENDING FINAL APPROVAL OF
CLASS ACTION SETTLEMENT

I. STIPULATION
Plaintiffs, Angelina Freitas, Rebecca Lyon and Maresa Kendrick (“Plaintiffs”) and

23

Defendants, Bounceback, Inc., Check Connection, Inc., Stone Fence Holdings, Inc., and Gale

24

Krieg (“Defendants”) hereby stipulate and request that Court issue an Order staying the case

25

pending preliminary and final approval of a proposed class-wide settlement in a related action.

26
27

1.

The Plaintiffs in this matter challenge the Defendants’ operation of “Check

Enforcement Programs” under the Fair Debt Collection Practices Act and the California Unfair
STIPULATION TO STAY MATTER PENDING FINAL
APPROVAL OF CLASS ACTION SETTLEMENT - 1
CASE NO. 3:15-cv-03560-RS

1

Competition Law. This case is brought on behalf of a proposed class of California consumers in

2

Lake, Mendocino, Plumas, San Benito, Sutter, and Yuba counties (Dkt. No. 35).

3
4

2.

Defendants have answered the Plaintiffs First Amended Complaint. The Plaintiffs

and Defendants have exchanged Initial Disclosures. There are no pending motions.

5

3.

Plaintiffs’ counsel represent a proposed class of Washington state consumers who

6

filed a similar action captioned Cavnar et al. v. BounceBack, Inc., et al., No. 2:14-cv-00235 in

7

the United States District Court for the Eastern District of Washington (see Dkt. No. 37 ¶ 10).

8

The Cavnar action was filed more than a year before this action was filed.

9

4.

The parties to this action and the Cavnar action have reached a proposed global

10

settlement of both actions (see Exhibit A (Settlement Agreement).) In accord with the

11

Settlement Agreement, Plaintiffs in the Cavnar action have filed a second amended complaint

12

that includes the proposed class of California consumers and are seeking preliminary and final

13

approval of the proposed class-wide settlement in the Eastern District of Washington. Exhibit A

14

§ 1.5. The parties advised this Court of the settlement via an email to the courtroom deputy on

15

December 28, 2015.

16

5.

Plaintiffs filed their unopposed motion for preliminary approval of the proposed

17

settlement in the Cavnar action on Friday, March 11, 2016 (Dkt No. 119 in the Cavnar action).

18

Accordingly, the parties respectfully request that the Court stay this action pending preliminary

19

and final approval of the proposed settlement or until September 30, 2016, whichever is earlier.

20

6.

The parties will promptly advise the Court via joint status reports of developments

21

in the Cavnar action, including the court’s issuance of orders granting or denying preliminary or

22

final approval of the proposed settlement.

23

7.

If the settlement receives the court’s final approval in the Cavnar matter,

24

Plaintiffs will dismiss this action under Federal Rule of Civil Procedure 42. If the settlement is

25

not approved, the parties will request a case management conference to set new deadlines in this

26

matter.

27
STIPULATION TO STAY MATTER PENDING FINAL
APPROVAL OF CLASS ACTION SETTLEMENT - 2
CASE NO. 3:15-cv-03560-RS

1
2

STIPULATED TO AND DATED this 16th day of March, 2016.
TERRELL MARSHALL LAW GROUP PLLC

PAINE HAMBLEN LLP

By: /s/ Beth E. Terrell, CSB #178181
Beth E. Terrell, CSB #178181
Email: [e-mail]
Blythe H. Chandler, Admitted Pro Hac Vice
Email: [e-mail]
936 North 34th Street, Suite 300
Seattle, Washington 98103-8869
Telephone: [phone]
Facsimile: [phone]

By: /s/ Greg R. Smith, Admitted Pro Hac Vice
Scott C. Cifrese, Admitted Pro Hac Vice
Email: [e-mail]
Gregg R. Smith, Admitted Pro Hac Vice
Email: [e-mail]
717 West Sprague Avenue, Suite 1200
Spokane, Washington 99201
Telephone: [phone]
Facsimile: [phone]

3
4
5
6
7
8
9
10
11
12
13
14
15

Michael F. Ram, CSB #104805
Email: [e-mail]
Karl Olson, CSB #104760
Email: [e-mail]
Susan S. Brown, CSB #287986
Email: [e-mail]
RAM, OLSON, CEREGHINO
& KOPCZYNSKI
555 Montgomery Street, Suite 820
San Francisco, California 94111
Telephone: [phone]
Facsimile: [phone]

Robert F. Tyson, Jr., CSB #147177
Email: [e-mail]
Jacob Felderman, CSB #229400
Email: [e-mail]
Kelly Denham, CSB #285314
Email: [e-mail]
TYSON & MENDES
5661 La Jolla Boulevard
La Jolla, California 92037
Telephone: [phone]
Facsimile: [phone]

16
17
18
19
20
21
22
23
24
25
26

Paul Arons, CSB #84970
Email: [e-mail]
LAW OFFICE OF PAUL ARONS
685 Spring Street, Suite 104
Friday Harbor, Washington 98250
Telephone: [phone]
Facsimile: [phone]

Attorneys for Defendants

Deepak Gupta
Email: [e-mail]
GUPTA WESSLER PLLC
1735 20th Street, NW
Washington, DC 20009
Telephone: [phone]
Facsimile: [phone]
Attorneys for Plaintiffs

27
STIPULATION TO STAY MATTER PENDING FINAL
APPROVAL OF CLASS ACTION SETTLEMENT - 3
CASE NO. 3:15-cv-03560-RS

1

II. LOCAL RULE 5-1(I)(3) STATEMENT

2

Pursuant to Local Rule 5-1(i)(3), I hereby attest that concurrence in the filing of this

3

document has been obtained from counsel for all parties, and that I will maintain records to

4

support this concurrence by all counsel subject to this stipulation as required under the local

5

rules.

6
7
8
9
10
11
12

TERRELL MARSHALL LAW GROUP PLLC
By: /s/ Beth E. Terrell, CSB #178181
Beth E. Terrell, CSB #178181
Email: [e-mail]
Blythe H. Chandler, Admitted Pro Hac Vice
Email: [e-mail]
936 North 34th Street, Suite 300
Seattle, Washington 98103-8869
Telephone: [phone]
Facsimile: [phone]
Attorneys for Plaintiffs

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
STIPULATION TO STAY MATTER PENDING FINAL
APPROVAL OF CLASS ACTION SETTLEMENT - 4
CASE NO. 3:15-cv-03560-RS

1

III. [PROPOSED] ORDER

2

Pursuant to stipulation, this matter shall be stayed and administratively closed pending

3

preliminary and final approval of a proposed class-wide settlement in Cavnar v. BounceBack,

4

Inc., No. No. 2:14-cv-00235 (E.D. Wash.). The stay shall last until the court in the Cavnar

5

matter finally approves or rejects the proposed settlement and the period for appeal from a final

6

approval order has lapsed, or until September 30, 2016, whichever is earlier. The parties shall

7

promptly advise the Court of developments in the Cavnar matter via joint status report.

8

IT IS SO ORDERED.

9

March
16th
Dated this ______ day of ______________________________________, 2016.

10
11

UNITED STATES DISTRICT JUDGE

12

Presented by:

13

TERRELL MARSHALL LAW GROUP PLLC

14

By: /s/ Beth E. Terrell, CSB #178181
Beth E. Terrell, CSB #178181
Email: [e-mail]
Blythe H. Chandler, Admitted Pro Hac Vice
Email: [e-mail]
936 North 34th Street, Suite 300
Seattle, Washington 98103-8869
Telephone: [phone]
Facsimile: [phone]

15
16
17
18
19
20
21
22
23
24
25
26

Michael F. Ram, CSB #104805
Email: [e-mail]
Karl Olson, CSB #104760
Email: [e-mail]
Susan S. Brown, CSB #287986
Email: [e-mail]
RAM, OLSON, CEREGHINO
& KOPCZYNSKI
555 Montgomery Street, Suite 820
San Francisco, California 94111
Telephone: [phone]
Facsimile: [phone]

27
STIPULATION TO STAY MATTER PENDING FINAL
APPROVAL OF CLASS ACTION SETTLEMENT - 5
CASE NO. 3:15-cv-03560-RS

Paul Arons, CSB #84970
Email: [e-mail]
LAW OFFICE OF PAUL ARONS
685 Spring Street, Suite 104
Friday Harbor, Washington 98250
Telephone: [phone]
Facsimile: [phone]

1
2
3
4
5

Deepak Gupta
Email: [e-mail]
GUPTA WESSLER PLLC
1735 20th Street, NW
Washington, DC 20009
Telephone: [phone]
Facsimile: [phone]

6
7
8
9
10

Attorneys for Plaintiffs

11

PAINE HAMBLEN LLP

12

By:

13
14
15
16
17
18
19
20
21
22
23
24
25

/s/ Greg R. Smith, Admitted Pro Hac Vice
Scott C. Cifrese, Admitted Pro Hac Vice
Email: [e-mail]
Gregg R. Smith, Admitted Pro Hac Vice
Email: [e-mail]
717 West Sprague Avenue, Suite 1200
Spokane, Washington 99201
Telephone: [phone]
Facsimile: [phone]
Robert F. Tyson, Jr., CSB #147177
Email: [e-mail]
Jacob Felderman, CSB #229400
Email: [e-mail]
Kelly Denham, CSB #285314
Email: [e-mail]
TYSON & MENDES
5661 La Jolla Boulevard
La Jolla, California 92037
Telephone: [phone]
Facsimile: [phone]

Attorneys for Defendants

26
27
STIPULATION TO STAY MATTER PENDING FINAL
APPROVAL OF CLASS ACTION SETTLEMENT - 6
CASE NO. 3:15-cv-03560-RS

CERTIFICATE OF SERVICE

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

I, Beth E. Terrell, hereby certify that on March 16, 2016, I electronically filed the
foregoing with the Clerk of the Court using the CM/ECF system which will send notification of
such filing to the following:
Robert F. Tyson, Jr., CSB #147177
Email: [e-mail]
Jacob Felderman, CSB #229400
Email: [e-mail]
Kelly Denham, CSB #285314
Email: [e-mail]
TYSON & MENDES
5661 La Jolla Boulevard
La Jolla, California 92037
Telephone: [phone]
Facsimile: [phone]
Scott C. Cifrese, Admitted Pro Hac Vice
Email: [e-mail]
Gregg R. Smith, Admitted Pro Hac Vice
Email: [e-mail]
PAINE HAMBLEN LLP
717 West Sprague Avenue, Suite 1200
Spokane, Washington 99201
Telephone: [phone]
Facsimile: [phone]

17
18

Attorneys for Defendants
DATED this 16th day of March, 2016.

19
TERRELL MARSHALL LAW GROUP PLLC
20
21
22
23
24
25
26

By: /s/ Beth E. Terrell, CSB #178181
Beth E. Terrell, CSB #178181
Email: [e-mail]
936 North 34th Street, Suite 300
Seattle, Washington 98103
Telephone: [phone]
Facsimile: [phone]
Attorneys for Plaintiffs and the Proposed Classes

27
STIPULATION TO STAY MATTER PENDING FINAL
APPROVAL OF CLASS ACTION SETTLEMENT - 7
CASE NO. 3:15-cv-03560-RS

- Exhibit A -

1
2
3
4
5
6

Beth E. Terrell, WSBA #26759
Erika L. Nusser, WSBA #40854
Blythe H. Chandler, WSBA #43387
Attorneys for Plaintiffs
TERRELL MARSHALL LAW GROUP PLLC
936 North 34th Street, Suite 300
Seattle, Washington 98103-8869
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
Email: [e-mail]
Email: [e-mail]

7
[Additional Counsel Appear on Signature Page]
8
IN THE UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF WASHINGTON

9
10
11
12

WODENA CAVNAR, ROSALINE
TERRILL, LINDA PARKS AND
DAVID SCOTT, on their own behalf
and on the behalf of all others similarly
situated,
Plaintiffs,

13
14
15
16
17

v.
BOUNCEBACK, INC., a Missouri
Corporation, STONE FENCE
HOLDINGS, INC., GALE KRIEG, and
DOES 1 through 20,
Defendants.

18
19
20
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 1
CASE NO. 2:14-CV-00235-RMP

NO. 2:14-cv-00235-RMP
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE

1

SETTLEMENT AGREEMENT & RELEASE

2

This Settlement Agreement and Release (the “Settlement Agreement”) is

3

entered into by and between plaintiffs Woodena Cavnar, Rosaline Terrill, Linda

4

Parks, David Scott, Angelina Freitas, Rebecca Lyon, and Maresa Kendrick

5

(collectively, “Plaintiffs”), for themselves and the Settlement Class Members (as

6

defined below), and defendants BounceBack, Inc., Stone Fence Holdings, Inc.,

7

Check Connection, Inc., and Gale Krieg (“Defendants”). Plaintiffs and

8

Defendants are referred to collectively in this Settlement Agreement as the

9

“Parties.”

10
11
12
13

I.

RECITALS

This Settlement Agreement is made with reference to and in contemplation
of the following facts and circumstances:
1.

On July 18, 2014, Plaintiffs Cavnar, Terrill, and Parks initiated a

14

lawsuit, captioned Cavnar v. BounceBack, Inc. (“Washington Action”), against

15

Defendants BounceBack, Inc., Stone Fence Holdings, Inc., and Gale Krieg before

16

the United States District Court for the Eastern District of Washington. Plaintiff

17

Scott joined as a party when Plaintiffs filed their First Amended Complaint in the

18

Washington Action on May 29, 2015.

19
20

2.

On August 3, 2015, Plaintiffs Freitas, Lyon, and Kendrick initiated a

lawsuit captioned Freitas v. BounceBack, Inc. (“California Action”), against
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 2
CASE NO. 2:14-CV-00235-RMP

1

Defendants BounceBack, Inc., Stone Fence Holdings, Inc., Check Connection,

2

Inc., and Gale Krieg before the United States District Court for the Northern

3

District of California. Plaintiffs filed their First Amended Complaint in the

4

California Action on October 23, 2015.

5

3.

Plaintiffs allege in the Complaint in the Washington Action, on

6

behalf of Plaintiffs and two proposed Washington classes, that Defendants

7

violated the Fair Debt Collection Practices Act, 15 U.S.C. § 1692, et seq.

8

(“FDCPA”) and the Washington Consumer Protection Act, RCW 19.86.010, et

9

seq. (“CPA”) by sending false and deceptive debt collection letters to Plaintiffs

10
11

and the proposed class.
4.

Plaintiffs allege in the Complaint in the California Action, on behalf

12

of the California Plaintiffs and two proposed California classes that Defendants

13

violated the FDCPA and the California Unfair Competition Law, Cal. Bus. &

14

Prof. C., §§ 17200, et seq. (“UCL”) by sending false and deceptive debt

15

collection letters to Plaintiffs and the proposed class.

16

5.

The parties have agreed to the filing of a Second Amended

17

Complaint in the Eastern District of Washington that combines all parties and

18

claims in both the Washington Action and the California Action (collectively, the

19

“Action”). If the Court does not finally approve this Settlement for any reason,

20

the Second Amended Complaint shall be of no further force or effect; the First
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 3
CASE NO. 2:14-CV-00235-RMP

1

Amended Complaints filed in both the Washington and California Actions will be

2

the operative complaints.

3

6.

Defendants deny all claims asserted in the Action. Defendants also

4

deny all allegations of wrongdoing and liability in this Action. Defendants seek to

5

settle the Action for the sole purpose of avoiding the burden and expense of

6

continuing to litigate this Action.

7

7.

The Parties and their counsel have conducted investigations of the

8

facts and law underlying the claims asserted in this Action. In addition, the

9

Parties and their counsel have conducted extensive discovery, which required

10

Defendants to produce thousands of documents and a significant volume of data,

11

and which included significant third-party discovery. The Plaintiffs also

12

responded to written discovery. The Parties and their counsel have also

13

conducted a thorough assessment of the strengths and weaknesses of their

14

respective cases.

15

8.

The Parties and their counsel have engaged in extensive and arm’s-

16

length negotiations concerning settlement of the claims asserted in the Action,

17

including participating in private mediation with Teresa Wakeen, of Wakeen &

18

Associates Mediation Services, an experienced mediator of consumer class action

19

lawsuits.

20
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 4
CASE NO. 2:14-CV-00235-RMP

1

9.

As a result of the abovementioned efforts and ongoing direct

2

negotiations between the Parties after the unsuccessful mediation, the Parties

3

enter into this Settlement Agreement. Subject to this Court’s approval as required

4

by Rule 23 of the Federal Rules of Civil Procedure, this Settlement Agreement

5

will fully and forever resolve, discharge, and release all rights and claims of

6

Plaintiffs and the Settlement Class Members (as defined below). In exchange,

7

Defendants agree to pay the sum of $530,000 to create a common fund for the

8

benefit of Plaintiffs and the Settlement Class Members.

9

10.

Plaintiffs and their counsel have concluded, based upon their

10

investigation and thorough assessment, and taking into account Defendants’

11

assets available to satisfy a judgment, defenses, the expense and time necessary to

12

continue to litigate the Action through trial, the risks and costs associated with

13

any further proceedings and potential appeals, the uncertainties of proving the

14

claims asserted in the Action, and the substantial benefits to be received pursuant

15

to this Settlement Agreement, that a settlement with Defendants and the terms of

16

this Settlement Agreement are fair and reasonable, as well as in the best interest

17

of Plaintiffs and the Settlement Class Members.

18

11.

Plaintiffs, on behalf of themselves and the Settlement Class

19

Members, and their counsel agree to the terms of this Settlement Agreement and

20

to have judgment entered without trial or adjudication of any factual or legal
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 5
CASE NO. 2:14-CV-00235-RMP

1

issue. Plaintiffs and their counsel also agree that this Settlement Agreement,

2

including any of its exhibits, does not constitute any evidence against, or any

3

admission by Defendants.

4

THEREFORE, the Parties hereby stipulate and agree that, in

5

consideration of the agreements, promises, and covenants set forth in this

6

Settlement Agreement, and subject to approval of the Court, the Action shall be

7

completely, fully, and finally settled and dismissed with prejudice as follows:

8

II.

DEFINITIONS

9

In addition to the terms defined in other Sections of this Settlement

10

Agreement, the following defined terms apply to this Settlement Agreement and

11

its exhibits:

12

1.

“Class Administrator” means the third-party selected by Class

13

Counsel to prepare and send notice to the Settlement Class and to administer the

14

settlement claims.

15

2.

“Class Counsel” or “Plaintiffs’ Counsel” means the law firms of

16

Terrell Marshall Law Group, PLLC, Law Office of Paul Arons, Gupta Wessler

17

PLLC, Ram, Olson, Cereghino & Kopczynski LLP, and Kirk D. Miller, P.S.

18
19

3.

“Court” means the United States District Court for the Eastern

District of Washington.

20
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 6
CASE NO. 2:14-CV-00235-RMP

1

4.

“Defendants’ Fees” means any amount of money paid to the

2

Defendants by a member of the Settlement Class that exceeds the amount of a

3

check that was dishonored upon presentment.

4
5

5.

“Effective Date” means the fifth day after the later of the following

events:

6

a.

The Court has entered the Final Approval Order; and

7

b.

The final disposition of any related appeals, or, in the case of

8

no appeal or review being filed, expiration of the applicable

9

appellate period.

10

6.

“Final Approval Hearing” means the hearing held by the Court to

11

determine whether to finally approve the Settlement and to determine the amount

12

of fees and expenses awarded to Class Counsel and the amount of the service

13

awards to Plaintiffs.

14

7.

“Final Approval Order” means the order and judgment that the Court

15

enters after finally approving the Settlement, substantially in the form attached

16

hereto as Exhibit A.

17

8.

“Letter” means any letter that the Released Parties sent, referring or

18

relating to a returned check, and bearing the name, seal, or letterhead of any

19

prosecuting attorney in Washington, or of a district attorney in Lake, Mendocino,

20

Plumas, San Benito, Sutter, or Yuba counties in California.
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 7
CASE NO. 2:14-CV-00235-RMP

1

9.

“Notice Plan” means the proposed plan of sending notice to the

2

Settlement Class of the proposed Settlement as set forth in Section VII.3 of this

3

Settlement Agreement.

4
5
6
7
8
9

10.

“Objection Deadline” means 60 calendar days from the Settlement

Notice Date.
11.

“Opt-Out Deadline” means 60 calendar days from the Settlement

Notice Date.
12.

“Postcard Notice” means the notice that will be provided pursuant to

Section VII.3 of this Settlement Agreement, substantially in the same form as

10

Exhibit B.

11

13.

“Preliminary Approval Order” means the order that the Court enters

12

upon preliminarily approving the Settlement, substantially in the form attached

13

hereto as Exhibit C.

14
15
16
17
18
19

14.

“Released Claims” means all claims to be released as set forth in

Section XII.2 of this Settlement Agreement.
15.

“Released Parties” means Defendants BounceBack, Inc., Stone

Fence Holdings, Inc., Check Connection, Inc., and Gale Krieg.
16.

“Releasing Parties” means the named Plaintiffs and members of the

Settlement Class to whom the Postcard Notice is mailed.

20
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 8
CASE NO. 2:14-CV-00235-RMP

1
2
3
4
5

17.

“Settlement” means the settlement contemplated by this Settlement

Agreement.
18.

“Settlement Award” means a cash payment that may be available to

eligible Settlement Class Members.
19.

“Settlement Class” means all persons who: (a) were sent one or more

6

Letters bearing the name, seal, or letterhead of any prosecuting attorney in

7

Washington, from July 18, 2013 to November 30, 2015; or (b) were sent one or

8

more Letters bearing the name, seal, or letterhead of any prosecuting attorney in

9

Washington, from July 18, 2010 to November 30, 2015 and who paid any of

10

Defendants’ Fees; or (c) were sent one or more Letters bearing the name, seal, or

11

letterhead of any district attorney in Lake, Mendocino, Plumas, San Benito,

12

Sutter, or Yuba County, California from August 3, 2014 to November 30, 2015;

13

or (d) were sent one or more Letters bearing the name, seal, or letterhead of any

14

district attorney in Lake, Mendocino, Plumas, San Benito, Sutter, or Yuba

15

County, California from August 3, 2011 to November 30, 2015 and who paid any

16

of Defendants’ Fees; and appear on the Settlement Class List.

17
18
19
20

20.

“Settlement Class List” means the Excel spreadsheets provided by

Defendants to Plaintiffs’ counsel on February 10, 2016.
21.

“Settlement Class Members” means all persons in the Settlement

Class who do not request to be excluded from this Settlement.
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 9
CASE NO. 2:14-CV-00235-RMP

1

22.

“Settlement Costs” means (i) any award of attorneys’ fees and costs

2

to Class Counsel approved by the Court; (ii) any incentive or statutory damage

3

awards to Plaintiffs approved by the Court; (iii) all costs of printing and providing

4

notice to persons in the Settlement Class (including, but not limited to Postcard

5

Notice, Website Notice, and any additional notice that might be ordered by the

6

Court); (iv) all costs of administering the Settlement, including, but not limited to,

7

the cost of printing and mailing Settlement Awards and the cost of maintaining a

8

Settlement Website; and (v) the fees, expenses and all other costs of the Class

9

Administrator.

10

23.

“Settlement Fund” means the total cash sum of $530,000.00 to be

11

paid by Defendants pursuant to Sections IV.4 and IV.5 of this Settlement

12

Agreement. The Settlement Fund will be maintained in an escrow account

13

managed by the Class Administrator. The Class Administrator will act in

14

accordance with the terms of this Settlement Agreement and the orders of the

15

Court.

16
17
18
19

24.

“Settlement Notice Date” means the date the Settlement Notices are

sent pursuant to the Notice Plan.
25.

“Settlement Website” means the website that will be established and

maintained by the Class Administrator as set forth in this Settlement Agreement.

20
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 10
CASE NO. 2:14-CV-00235-RMP

1

26.

“Website Notice” means the detailed notice of the Settlement that

2

will be available on the Settlement Website subject to approval by the Court,

3

substantially in the form attached hereto as Exhibit D.

4
5

III.
1.

TERMS OF SETTLEMENT

Stay and Dismissal of Freitas v. BounceBack, Inc. The Parties agree

6

to jointly seek a stay of the California Action pending approval of this Settlement

7

and the Parties agree to voluntarily dismiss the California Action under Federal

8

Rule of Civil Procedure 41(a)(1)(A)(ii), within five (5) calendar days of the

9

Effective Date.

10

2.

Conditional Certification of the Settlement Class. For the sole

11

purpose of settlement, the Parties and their counsel agree to conditional

12

certification of the Settlement Class. Preliminary approval of the Settlement

13

Class shall not be deemed a concession that certification of a litigation class is

14

proper, and it will not preclude Defendants from challenging class certification in

15

this Action or in any other proceedings. If the Court does not finally approve this

16

Settlement for any reason, the certification of the Settlement Class will be void.

17

No agreements made or entered into by Defendants in connection with this

18

Settlement may be used by Plaintiffs, any person in the Settlement Class, or any

19

other person to establish any liability or any element of class certification in this

20

Action or any other proceedings.
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 11
CASE NO. 2:14-CV-00235-RMP

1
2

IV.
1.

SETTLEMENT CONSIDERATION

Settlement Fund. Defendants shall pay $530,000.00 in full and

3

complete satisfaction of all obligations under this Settlement. The non-

4

reversionary Settlement Fund includes, without limitation, payment of Settlement

5

Awards, expenses for notice and class administration, fees and expenses of Class

6

Counsel, and service and statutory awards to Plaintiffs. Under no circumstances

7

will the Released Parties have any further payment obligations to Plaintiffs, any

8

member of the Settlement Class, the Class Administrator, or Class Counsel.

9

From the Settlement Fund, not less than $242,467.00 shall be allocated to awards

10

to Settlement Class Members. The balance shall be allocated to class

11

administration expenses, litigation costs and expenses, awards to the class

12

representatives, and partial payment of reasonable attorney’s fees as set forth

13

below. The Released Parties agree that they will not object to this allocation.

14

2.

Distributions to Settlement Class Members. Each Settlement Class

15

Member for whom the Class Administrator has a deliverable address (which shall

16

be determined based on whether the Postcard Notice is successfully delivered)

17

shall be paid a single Settlement Award:

18

a. Members of the Settlement Class who have only FDCPA

19

statutory damages will receive a Settlement Award of $5.

20
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 12
CASE NO. 2:14-CV-00235-RMP

1

b. Members of the Settlement Class who paid Defendants’ Fees will

2

receive a Settlement Award reflecting a percentage of the Fees

3

the Settlement Class Member paid to Defendants, provided

4

however that Settlement Class Members whose total Settlement

5

Award would otherwise be less than $5 will receive an award of

6

$5. Class Counsel estimates that these Settlement Awards will

7

equal thirteen to fifteen (13–15) percent of the fees paid by each

8

Washington CPA and California UCL Settlement Class Member.

9

c. Settlement Class Members who both have statutory damages

10

under the FDCPA and paid Defendants’ Fees will receive either

11

an award based on a percentage of Fees paid or a $5 award of

12

statutory damages, whichever is greater.

13

d. Settlement Awards shall be mailed by the Class Administrator

14

within 30 days after the Effective Date. The Class Administrator

15

shall mail, by first class mail, a check to each Settlement Class

16

Member whose Postcard Notice was not returned undeliverable.

17

Settlement Class Members will not be required to submit claims

18

in order to receive a Settlement Award. Checks will be valid for

19

120 days from the date on the check.

20
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 13
CASE NO. 2:14-CV-00235-RMP

1

3.

Payment. Within seven (7) calendar days from the entry of the

2

Preliminary Approval Order, Defendants will pay the Class Administrator the full

3

amount of the Settlement Fund. If the Effective Date does not take place, any

4

remaining funds shall be returned to Defendants. In the event there is no

5

Effective Date, Plaintiffs shall have no liability for any payments previously

6

made from the Settlement Fund in accordance with the provisions of this

7

Settlement Agreement.

8

V.

SERVICE AWARD TO PLAINTIFFS AND
ATTORNEYS’ FEES AND EXPENSES

9
1.

Payment to Plaintiffs. Plaintiffs may move the Court for service

10
awards for their time and effort in connection with this Action. Plaintiffs will ask
11
the Court to approve service awards in the amount of One Thousand Dollars
12
($1,000.00) for each of the Plaintiffs. Plaintiffs will also ask the Court to approve
13
statutory damages of One Thousand Dollars ($1,000.00) for each of the Plaintiffs
14
under 15 U.S.C. § 1692k(a)(2). The Class Administrator shall issue any approved
15
service awards and statutory damages from the Settlement Fund to Class Counsel
16
within five (5) days after the Effective Date. Class Counsel will then disburse the
17
payments to Plaintiffs.
18
2.

Class Administration Costs, Litigation Expenses and Attorney’s

19
Fees. Class administration costs, litigation expenses and reasonable attorney’s
20
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 14
CASE NO. 2:14-CV-00235-RMP

1

fees shall be paid from the balance remaining in the Settlement Fund after the

2

allocation for Settlement Awards approved by the Court. Class Counsel will

3

move the Court for an award of reasonable attorneys’ fees and expenses, based on

4

the lodestar amount of their fees, as well as reasonable out-of-pocket costs and

5

litigation expenses that Class Counsel have incurred prosecuting this litigation.

6

Class Counsel will file any motion for an award of attorneys’ fees, costs, and

7

service and statutory damage awards to Plaintiffs within 30 days of the Settlement

8

Notice Date. Attorney’s fees will be paid from the balance remaining after

9

payment of class administration costs, and reasonable litigation costs and

10

expenses. Class counsel anticipate that their lodestar fees will substantially

11

exceed the amount available after payment of all other amounts due under this

12

Settlement. The Class Administrator will post Class Counsel’s motion for an

13

award of fees, costs, and service and statutory damage awards within twenty-four

14

(24) hours after it is filed with the Court. The Class Administrator shall issue the

15

award of attorneys’ fees and expenses available from the Settlement Fund to

16

Class Counsel within five (5) days after the Effective Date.

17

3.

Unclaimed Settlement Funds. Settlement Award checks that are not

18

cashed within 120 days after the date on the check shall be voided. To the extent

19

that the Court has approved as reasonable fees and costs exceeding the amount

20

available when Settlement Award checks were mailed, Class Counsel will ask the
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 15
CASE NO. 2:14-CV-00235-RMP

1

Court to order that unclaimed funds remaining in the Settlement Fund after all

2

Settlement Award checks have been cashed or voided be paid to Class Counsel.

3

No amounts shall revert to Defendants.

4

4.

Cy pres Award: Because of the limited funds available in this

5

Settlement, Plaintiffs do not anticipate that there will be any amounts remaining

6

in the Settlement Fund after a distribution of Settlement Awards to Plaintiffs and

7

Settlement Class Members, and payment of class administration costs, reasonable

8

attorney’s fees, and litigation costs and expenses. If there are undistributed

9

amounts remaining in the Settlement Fund, the parties agree that these amounts

10
11

shall be paid to the Northwest Consumer Law Center, as a cy pres recipient.
5.

Effect of Lesser Award. If the Court awards service or statutory

12

damage awards to Plaintiffs or fees and costs to Class Counsel that are lower than

13

requested, this Settlement Agreement will remain in full force and will continue

14

to be binding on all Parties, including the Settlement Class Members. No funds

15

shall revert to Defendants.

16
17

VI.
1.

PRELIMINARY APPROVAL

Motion for Preliminary Approval. On or before March 4, 2016,

18

Plaintiffs will move the Court for entry of the Preliminary Approval Order, which

19

shall specifically include provisions that: (a) preliminarily approve the Settlement

20

reflected herein as fair, adequate and reasonable to the Settlement Class, and
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 16
CASE NO. 2:14-CV-00235-RMP

1

within the reasonable range of possible final approval; (b) conditionally certify

2

the Settlement Class for settlement purposes only and appoint Class Counsel as

3

counsel for the Settlement Class for settlement purposes only; (c) approve the

4

forms of Class Notice and find that the Notice Program constitutes the best notice

5

practicable under the circumstances, provides due and sufficient notice to the

6

Settlement Class and fully satisfies the requirements of due process and Federal

7

Rule of Civil Procedure 23; (d) direct that notice be provided to the Settlement

8

Class, in accordance with this Agreement, within thirty (30) days following entry

9

of the Preliminary Approval Order (the “Notice Deadline”); (e) establish a

10

procedure for Settlement Class Members to object to the Settlement or exclude

11

themselves from the Settlement Class, and set a date sixty (60) days after the

12

Notice Deadline, after which no one shall be allowed to object to the Settlement

13

or exclude himself or herself from the Settlement Class or seek to intervene; (f)

14

approve the Notice and Settlement Fund Distribution described herein; (g)

15

pending final determination of whether the Settlement should be approved, bar all

16

Settlement Class Members, directly, on a representative basis or in any other

17

capacity, from commencing or prosecuting against any of the Released Parties

18

any action, arbitration, or proceeding in any court, arbitration forum or tribunal

19

asserting any of the Released Claims; (h) pending final determination of whether

20

the Settlement should be approved, stay all proceedings in the Action except
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 17
CASE NO. 2:14-CV-00235-RMP

1

those related to effectuation of the Settlement; and (i) schedule a hearing on Final

2

Approval of the Settlement, which shall be scheduled no earlier than thirty (30)

3

days after the Opt-Out and Objection Deadline.

4
5

VII. ADMINISTRATION AND NOTICE
1.

Class Administrator. The Class Administrator will be selected by

6

Class Counsel, and shall be responsible for administration of this Settlement. The

7

Class Administrator shall be allowed to communicate freely with the Parties’

8

counsel, and will provide updates on a monthly basis to and as requested by the

9

Parties’ counsel.

10

2.

Payment of Administration and Notice. All costs of administering

11

this Settlement will be paid from the Settlement Fund by the Class Administrator,

12

subject to written approval by Class Counsel. In their motion for preliminary

13

approval, Class Counsel will provide an estimate of the cost of administering the

14

Settlement. Regardless of the ultimate costs of administering this Settlement,

15

Defendants’ payment obligation is limited to Section IV.1 of this Settlement

16

Agreement.

17

3.

Notice and Fund Distribution Plan. The Class Administrator shall

18

provide notice as detailed below within thirty (30) calendar days after the

19

issuance of the Preliminary Approval Order:

20
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 18
CASE NO. 2:14-CV-00235-RMP

1

a.

2

Notice by U.S. Mail. The Class Administrator will provide
individual Postcard Notice through:

3

i.

U.S. mail to the most recent address for each

4

Settlement Class Member reflected in the records

5

produced by Defendants in this Action and

6

corrected through the National Change of

7

Address system.

8

b.

9

Settlement Website. Within seven (7) calendar days from
entry of the Preliminary Approval Order, the Class

10

Administrator will also establish and maintain the Settlement

11

Website, which will display, at a minimum, the operative

12

Complaint, Postcard Notice, Website Notice, this Settlement

13

Agreement, opt-out form, and the Preliminary Approval

14

Order. Within twenty-four (24) hours after Class Counsel files

15

a motion for an award of attorneys’ fees, costs and service

16

awards to Plaintiffs, that motion will also be displayed on the

17

Settlement Website.

18

4.

CAFA Notice. Class Counsel shall prepare and Defendants’ counsel

19

shall serve timely Class Action Fairness Act notices within ten (10) calendar days

20

after the filing of the motion for preliminary approval.
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 19
CASE NO. 2:14-CV-00235-RMP

1
2

IX.
1.

OPT-OUT PROCESS

Opt-Out Requirements. Individuals in the Settlement Class may

3

exclude themselves from the Settlement Class by advising the Class

4

Administrator either in writing, or through the Settlement Website, no later than

5

the Opt-Out Deadline that they do not want to be a class member. All such

6

writings must include the name and address of the individual opting out, and if

7

mailed, must be postmarked no later than the Opt-Out Deadline. All persons in

8

the Settlement Class will be bound by this Settlement and judgments of this Court

9

in this Action unless they exclude themselves in writing by the Opt-Out Deadline.

10

2.

Retention of Opt-Outs. The Class Administrator will retain a copy

11

of all opt-out requests and will provide copies to the Parties’ counsel upon

12

request.

13
14

X.
1.

OBJECTIONS

Right to Object. Any Settlement Class Member who desires to

15

object to the fairness of this Settlement must file a written objection with the

16

Court by the Objection Deadline. The written objection must provide the

17

objector’s name, address, and telephone number, and the reason(s) for the

18

objection.

19
20

2.

Right to Appear at Final Approval Hearing. Anyone who properly

objects, as described herein, may appear at the Final Approval Hearing, including
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 20
CASE NO. 2:14-CV-00235-RMP

1

through an attorney hired at the objector’s expense. Such objectors or their

2

attorneys intending to appear at the Final Approval Hearing must file a notice of

3

appearance with the Court no later than ten (10) days before the Final Approval

4

Hearing. Any member of the Settlement Class who fails to comply with the

5

provisions herein shall waive and forfeit any and all rights to appear and/or object

6

separately, and shall be bound by the terms of this Settlement and the orders and

7

judgments of this Court.

8
9

XI.
1.

FINAL APPROVAL

Declaration of Notice by Class Administrator. The Class

10

Administrator shall provide the Parties’ counsel no later than fourteen (14)

11

calendar days prior to the Final Approval Hearing with a declaration stating that

12

the Notice required by this Settlement Agreement has been completed pursuant to

13

the Preliminary Approval Order.

14

2.

Motion for Final Approval Order. After completion of the Notice

15

Plan and the expiration of the Opt-Out and Objection Deadlines, and no later than

16

fourteen (14) calendar days prior to the Final Approval Hearing, Plaintiffs’

17

counsel shall move the Court to enter the Final Approval Order. Plaintiffs’

18

counsel shall file a memorandum addressing any valid objections, and

19

Defendants’ counsel may, but is not required to, file an additional memorandum

20
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 21
CASE NO. 2:14-CV-00235-RMP

1

in response. The Parties’ responses addressing such objections shall be filed no

2

later than fourteen (14) days prior to the Final Approval Hearing.

3

3.

Final Approval Order. This Settlement Agreement is subject to and

4

conditioned upon the issuance by the Court of a Final Approval Order that grants

5

approval of this Settlement and:

6

a.

Finds that the notice under the Notice Plan satisfies the

7

requirements of Due Process and Rule 23 of the Federal Rules

8

of Civil Procedure;

9

b.

10
11

adequate to the Settlement Class Members;
c.

12
13

Finds that the Settlement Agreement is fair, reasonable, and

Finds that Plaintiffs and Class Counsel have adequately
represented the Settlement Class Members;

d.

Finds that each Settlement Class Member shall be bound to

14

this Settlement Agreement, including the release and covenant

15

not to sue in Section XII;

16

e.

Approves this Settlement;

17

f.

Dismisses on the merits with prejudice all claims of the

18
19
20

Settlement Class Members asserted in this Action;
g.

Permanently enjoins each Settlement Class Member from
bringing, joining, or continuing to prosecute against the

CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 22
CASE NO. 2:14-CV-00235-RMP

1

Released Parties any action involving the Released Claims;

2

and

3

h.

Retains jurisdiction of all matters relating to the

4

administration, implementation, interpretation, and

5

enforcement of this Settlement.

6
7

XII. RELEASE OF CLAIMS
1.

Release. As of the Effective Date, Plaintiffs and each Releasing

8

Party, their respective heirs, executors, administrators, representatives, agents,

9

attorneys, partners, affiliates, successors, predecessors-in-interest, and assigns

10

hereby release, resolve, relinquish, and discharge forever each of the Released

11

Parties and their respective directors, officers, employees, heirs, executors,

12

administrators, representatives, agents, attorneys, partners, affiliates, successors,

13

parents, subsidiaries, predecessors-in-interest, insurers, and assigns from each of

14

the Released Claims as defined below.

15

2.

Released Claims. Released Claims means any and all claims, causes

16

of action, suits, obligations, debts, demands, agreements, promises, liabilities,

17

damages, losses, controversies, costs, expenses, and attorneys’ fees of any nature

18

whatsoever, whether known or unknown, suspected or unsuspected, asserted or

19

unasserted, foreseen or unforeseen, actual or contingent, liquidated or

20

unliquidated, punitive or compensatory that exist as of November 30, 2015, and
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 23
CASE NO. 2:14-CV-00235-RMP

1

that arise out of or relate in any way to Letters, including, but not be limited to,

2

claims based on a violation of the FDCPA, CPA, UCL, and any other statutory or

3

common law claim.

4

3. Covenant Not to Sue. Plaintiffs and each Releasing Party will be deemed

5

to have agreed not to sue any Released Party with respect to any of the Released

6

Claims and to have agreed to be forever barred from doing so.

7
8

XIII. TERMINATION OF AGREEMENT
1.

The Parties’ Right to Terminate Settlement. The Parties shall have

9

the right to unilaterally terminate this Settlement Agreement by providing written

10

notice of its election to do so to the other party within fourteen (14) calendar days

11

of any of the following events:

12

a.

13

The Court rejects, materially changes or modifies, or declines
preliminary or final approval of the Settlement Agreement;

14

b.

An Appellate Court reverses the Final Approval Order;

15

c.

The Effective Date does not occur;

16

d.

A party, its counsel or the Class Administrator breaches the

17

terms of this Settlement Agreement prior to the Effective

18

Date; or

19
20

e.

Any other ground for termination provided elsewhere in this
Agreement.

CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 24
CASE NO. 2:14-CV-00235-RMP

1
2

XIV. NO ADMISSION OF LIABILITY
1.

Denial of Liability. Defendants deny any liability or wrongdoing of

3

any kind in connection with the claims alleged in this Action. Defendants have

4

denied and continues to deny each and every material factual allegation in this

5

Action. Nothing in this Settlement Agreement and all acts performed in

6

furtherance of this Settlement Agreement shall constitute an admission by

7

Defendants of wrongdoing or liability in this Action. Nothing in this Settlement

8

Agreement and all acts performed in furtherance of this Settlement Agreement

9

shall constitute an admission by Defendants of the truth of any factual allegations

10

in this Action. While Defendants deny any liability, they have concluded that

11

further litigating this Action would be expensive and waste the time and resources

12

of the company. Thus, Defendants have concluded that it is desirable to fully and

13

finally settle this Action.

14

2.

Federal Rule of Evidence 408. Pursuant to Rule 408 of the Federal

15

Rules of Evidence, this Settlement Agreement and any related documents filed or

16

created in connection with this Settlement Agreement shall be inadmissible as

17

evidence in any proceeding, except as necessary to approve, interpret, or enforce

18

this Settlement Agreement.

19

XV. GENERAL PROVISIONS

20
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 25
CASE NO. 2:14-CV-00235-RMP

1
2
3

1.

Entire Agreement. This Settlement Agreement and its exhibits

constitute the entire agreement between the Parties.
2.

Jurisdiction. This Court shall retain continuing and exclusive

4

jurisdiction over the Parties to this Settlement Agreement, including the

5

Settlement Class Members, and the administration and enforcement of this

6

Settlement Agreement.

7

3.

No Construction Against Drafter. This Settlement Agreement will

8

be deemed to have been drafted by the Parties, and any rule that a document shall

9

be interpreted against the drafter will not apply.

10

4.

Authority. Each person executing this Settlement Agreement on

11

behalf of any of the Parties hereto represents that such person has the authority to

12

so execute this Settlement Agreement.

13

5.

No Oral Modifications. This Settlement Agreement may not be

14

amended or modified in any manner except by a writing signed by Defendants

15

and Class Counsel, and approved by the Court.

16

6.

No Assignment. No party to this Settlement Agreement has

17

heretofore assigned, transferred, or granted, or attempted to do so, any of the

18

claims or causes of action disposed of by this Settlement Agreement.

19
20
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 26
CASE NO. 2:14-CV-00235-RMP

1

7.

Agreement Binding on Successors in Interest. This Settlement

2

Agreement is binding on and shall inure to the benefit of the respective heirs,

3

successors, and assigns of the Parties.

4

8.

Resolution of Disputes. Any disputes regarding the administration

5

of this Settlement Agreement that the Parties cannot resolve between themselves

6

will be decided by the Court.

7

9.

Execution in Counterparts. This Settlement Agreement may be

8

executed in any number of counterparts, each of which shall be deemed an

9

original, but all of which shall constitute one and the same instrument.

10
11

10.

Notices. All notices to counsel provided herein shall be sent by

electronic mail with a hard copy sent by overnight mail to:

12

As to Plaintiffs and Settlement Class Members:

13

TERRELL MARSHALL LAW GROUP PLLC
Beth E. Terrell
Email: [e-mail]
Erika L. Nusser
Email: [e-mail]
Blythe H. Chandler
Email: [e-mail]
936 North 34th Street, Suite 300
Seattle, Washington 98103-8869
Telephone: [phone]
Facsimile: [phone]

14
15
16
17
18
19
20

LAW OFFICE OF PAUL ARONS
Paul Arons
Email: [e-mail]
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 27
CASE NO. 2:14-CV-00235-RMP

1
2

685 Spring Street, Suite 104
Friday Harbor, Washington 98250
Telephone: [phone]
Facsimile: [phone]

3
4
5
6

KIRK D. MILLER, P.S.
Kirk D. Miller
Email: [e-mail]
421 W. Riverside Avenue, Suite 704
Spokane, Washington 99201
Telephone: [phone]
Facsimile: [phone]

7
8
9
10
11

RAM, OLSON, CEREGHINO & KOPCZYNSKI
Michael F. Ram
Email: [e-mail]
Susan S. Brown
Email: [e-mail]
555 Montgomery Street, Suite 820
San Francisco, California 94111
Telephone: [phone]
Facsimile: [phone]

12
13
14
15
16
17
18
19
20
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 28
CASE NO. 2:14-CV-00235-RMP

1

As to Defendants:

2

PAINE HAMBLEN LLP
Scott C. Cifrese
Email: [e-mail]
Gregg R. Smith
Email: [e-mail]
David L. Broom
Email: [e-mail]
717 W. Sprague Ave., Suite 1200
Spokane, Washington 99201
Telephone: [phone]
Facsimile: [phone]

3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 29
CASE NO. 2:14-CV-00235-RMP

1
IN WITNESS HEREOF the undersigned, being duly authorized, have
2
caused this Agreement to be executed on the dates shown below.
3
WODENA CAVNAR
4
By:
5

Plaintiff

6

ROSALINE TERRILL

7

03/10/2016
Date

By:
Plaintiff

Date

8
LINDA PARKS
9
By:
10

Plaintiff

11

DAVID SCOTT

12

By:
Plaintiff

Date

Date

13
ANGELINA FREITAS
14
By:
15

Plaintiff

16

REBECCA LYON

17

Date

By:
Plaintiff

Date

18
MARESA KENDRICK
19
By:
20

Plaintiff
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 30
CASE NO. 2:14-CV-00235-RMP

Date

1
IN WITNESS HEREOF the undersigned, being duly authorized, have
2
caused this Agreement to be executed on the dates shown below.
3
WODENA CAVNAR
4
By:
5

Plaintiff

6

ROSALINE TERRILL
SALINE

7

By:

Date

3/11/2016

Plaintiff
Plaintiff

Date

8
LINDA PARKS
9
By:
10

Plaintiff

11

DAVID SCOTT

12

By:
Plaintiff

Date

Date

13
ANGELINA FREITAS
14
By:
15

Plaintiff

16

REBECCA LYON

17

Date

By:
Plaintiff

Date

18
MARESA KENDRICK
19
By:
20

Plaintiff
CLASS ACTION SETTLEMENT
AGREEMENT AND RELEASE - 30
CASE NO. 2:14-CV-00235-RMP

Date

- Exhibit A -

1
2
3
4
5
6

Beth E. Terrell, WSBA #26759
Erika L. Nusser, WSBA #40854
Blythe H. Chandler, WSBA #43387
Attorneys for Plaintiffs
TERRELL MARSHALL LAW GROUP PLLC
936 North 34th Street, Suite 300
Seattle, Washington 98103-8869
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
Email: [e-mail]
Email: [e-mail]

7
[Additional Counsel Appear on Signature Page]
8
IN THE UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF WASHINGTON

9
10
11
12
13

WODENA CAVNAR, ROSALINE
TERRILL, LINDA PARKS, DAVID
SCOTT, ANGELINA FREITAS,
REBECCA LYON and MARESA
KENDRICK, on their own behalf and
on the behalf of all others similarly
situated,
Plaintiffs,

14
15
16
17
18
19

v.
BOUNCEBACK, INC., a Missouri
Corporation, CHECK CONNECTION,
INC., a Kansas corporation, STONE
FENCE HOLDINGS, INC., a Missouri
corporation, and GALE KRIEG,
Defendants.

20
[PROPOSED] ORDER OF FINAL
SETTLEMENT APPROVAL - 1
CASE NO. 2:14-CV-00235-RMP

NO. 2:14-cv-00235-RMP
[PROPOSED] ORDER OF
FINAL SETTLEMENT
APPROVAL

1

WHEREAS, on __________________, 2016, this Court entered its Order

2

Granting Preliminary Approval of Class Action Settlement (ECF No. ____) (the

3

“Preliminary Approval Order”); and

4

WHEREAS, individual notice complying with Fed. R. Civ. P. 23 was sent

5

to the last-known address of each reasonably identifiable member of the

6

Settlement Class, and where follow-up procedures outlined in the Settlement

7

Agreement and approved by the Preliminary Approval Order have been

8

completed; and

9
10
11
12
13
14
15

WHEREAS, a fairness hearing on final approval of the settlement was held
before the Court on ______________________, 2016; and
WHEREAS, the Court being advised, finds that good cause exists for the
entry of the below Order; now, therefore
IT IS HEREBY FOUND, ORDERED, ADJUDGED AND DECREED
THAT:
1.

Unless otherwise provided herein, all capitalized terms in this Order

16

shall have the same meaning as set forth in the Settlement Agreement attached as

17

Exhibit 1 to the Declaration of Beth E. Terrell in Support of Preliminary

18

Approval (ECF No. ____) and/or Plaintiffs’ Motion for Preliminary Approval

19

(ECF No. ____).

20
[PROPOSED] ORDER OF FINAL
SETTLEMENT APPROVAL - 2
CASE NO. 2:14-CV-00235-RMP

1

2.

The Court finds that notice to the Settlement Class has been

2

completed in conformity with the Preliminary Approval Order. The Court finds

3

that this notice was the best notice practicable under the circumstances, that it

4

provided due and adequate notice of the proceedings and of the matters set forth

5

therein, and that it fully satisfied all applicable requirements of law and due

6

process.

7

3.

The Court finds that notice of the Settlement Agreement has been

8

provided to the United States Attorney General, the Washington State Attorney

9

General, and the California Attorney General in accordance with 28 U.S.C.

10

§ 1715.

11

4.

The Court finds it has personal and subject matter jurisdiction over

12

all claims asserted in this Litigation with respect to all members of the Settlement

13

Class.

14

1.

Pursuant to Rule 23(b)(3) of the Federal Rules of Civil Procedure,

15

the Court certifies for settlement purposes only the following Settlement Class:

16

All persons who: (a) were sent one or more Letters bearing the name, seal, or

17

letterhead of any prosecuting attorney in Washington, from July 18, 2013 to

18

November 30, 2015; or (b) were sent one or more Letters bearing the name, seal,

19

or letterhead of any prosecuting attorney in Washington, from July 18, 2010 to

20

November 30, 2015 and who paid any of Defendants’ Fees; or (c) were sent one
[PROPOSED] ORDER OF FINAL
SETTLEMENT APPROVAL - 3
CASE NO. 2:14-CV-00235-RMP

1

or more Letters bearing the name, seal, or letterhead of any district attorney in

2

Lake, Mendocino, Plumas, San Benito, Sutter, or Yuba County, California from

3

August 3, 2014 to November 30, 2015; or (d) were sent one or more Letters

4

bearing the name, seal, or letterhead of any district attorney in Lake, Mendocino,

5

Plumas, San Benito, Sutter, or Yuba County, California from August 3, 2011 to

6

November 30, 2015 and who paid any of Defendants’ Fees; and appear on the

7

Settlement Class List.

8
9
10
11
12
13
14
15
16
17
18

“Settlement Class Members” include members of the Settlement Class that
do not opt-out from the action. The Settlement Class also does not include any
persons who validly request exclusion from the Class.
5.

In connection with this conditional certification, the Court makes the

following findings:
(a)

The Settlement Class is so numerous that joinder of all

members is impracticable;
(b)

There are questions of law or fact common to the Settlement

Class for purposes of determining whether this settlement should be approved;
(c)

Plaintiffs’ claims are typical of the claims being resolved

through the proposed settlement;

19
20
[PROPOSED] ORDER OF FINAL
SETTLEMENT APPROVAL - 4
CASE NO. 2:14-CV-00235-RMP

1

(d)

Plaintiffs are capable of fairly and adequately protecting the

2

interests of the Settlement Class members in connection with the proposed

3

settlement;

4

(e)

For purposes of determining whether the settlement is fair,

5

reasonable and adequate, common questions of law and fact predominate over

6

questions affecting only individual Settlement Class members. Accordingly, the

7

Settlement Class is sufficiently cohesive to warrant settlement by representation;

8

and

9

(f)

For purposes of settlement, certification of the Settlement

10

Class is superior to other available methods for the fair and efficient settlement of

11

the claims of the Settlement Class members.

12

6.

The Court has appointed Wodena Cavnar, Rosaline Terrill, Linda

13

Parks, David Scott, Angelina Freitas, Rebecca Lyon and Maresa Kendrick as

14

representatives of the Settlement Class.

15

7.

The Court has appointed Terrell Marshall Law Group PLLC, Gupta

16

Wessler PLLC, Law Office Paul Arons, Kirk D. Miller, P.S., and Ram, Olson,

17

Cereghino & Kopczynski as counsel for the Settlement Class.

18

8.

To the extent any timely-filed objections to the Settlement have been

19

lodged, the Court has considered those objections and found they do not counsel

20

against approval of the Settlement, and the objections are hereby overruled.
[PROPOSED] ORDER OF FINAL
SETTLEMENT APPROVAL - 5
CASE NO. 2:14-CV-00235-RMP

1

9.

The terms set forth in the Settlement are approved as being fair,

2

adequate, and reasonable in light of the degree of recovery obtained in relation to

3

the risks faced by the Settlement Class in litigating the claims. The Settlement

4

Class is properly certified as part of this settlement. The relief provided to the

5

Settlement Class under the Settlement Agreement is appropriate as to the

6

individual members of the Settlement Class and as a whole.

7

10.

The Court approves the payment of $___________ in fees and costs

8

to Class Counsel as fair and reasonable based on the lodestar and percentage-of-

9

the-fund methods, which courts use to determine the reasonableness of fees. The

10

Court also approves as reasonable Class Counsel’s total lodestar amount of

11

$___________. The Court reaches this conclusion after analyzing (1) the number

12

of hours Class Counsel reasonably expended on the litigation multiplied by

13

counsel’s reasonable hourly rates; (2) the substantial financial recovery for

14

Settlement Class members (3) the diligent and efficient effort utilized by Class

15

Counsel in litigating Plaintiffs’ claims; (4) Class Counsel’s substantial experience

16

in complex litigation and skill utilized to achieve the Settlement; and (5) the

17

hurdles to certifying the Settlement Class and proving liability and damages at

18

trial. In the event that there are unclaimed settlement funds after all Settlement

19

Award checks have been cashed or voided, the balance shall be paid to Class

20
[PROPOSED] ORDER OF FINAL
SETTLEMENT APPROVAL - 6
CASE NO. 2:14-CV-00235-RMP

1

Counsel, provided that doing so will not result in a total payment to Class

2

Counsel exceeding $___________.

3

11.

The Court approves the incentive and statutory damage payments of

4

$2,000 to Plaintiffs Wodena Cavnar, Rosaline Terrill, Linda Parks, David Scott,

5

Angelina Freitas, Rebecca Lyon and Maresa Kendrick. This award is reasonable

6

and does not undermine Plaintiffs’ adequacy as Class Representatives. Rather,

7

this award reasonably compensates Plaintiffs Wodena Cavnar, Rosaline Terrill,

8

Linda Parks, David Scott, Angelina Freitas, Rebecca Lyon and Maresa Kendrick

9

for his time and effort in stepping forward to serve as class representative,

10

assisting in the investigation, participating in and keeping abreast of the litigation,

11

and reviewing and approving the proposed settlement terms after consulting with

12

Class Counsel.

13

12.

The Settlement is binding on all Settlement Class members.

14

13.

Each member of the Settlement Class shall be entitled to receive a

15

pro rata share of the Net Settlement Proceeds as set forth in the Settlement

16

Agreement. Any Settlement Class Member who fails to cash or deposit a

17

disbursement check issued to that member after a period of 120 calendar days has

18

elapsed from the date on which the disbursement check was issued will not

19

receive a share of relevant Net Settlement Proceeds but will be bound

20

nevertheless by the terms of the relevant Settlement Agreement.
[PROPOSED] ORDER OF FINAL
SETTLEMENT APPROVAL - 7
CASE NO. 2:14-CV-00235-RMP

1

14.

All Settlement Class Members are bound by the terms of the

2

Settlement Agreement. As of that Settlement Agreement’s Effective Date, all

3

Settlement Class Members shall conclusively be deemed to have irrevocably

4

released, relinquished, and forever discharged all claims against all released

5

entities and individuals as set forth in the Settlement Agreement. The Settlement

6

Agreement provides: “Upon the Effective Date of this Agreement and without

7

any further action by the Court or by any Party to this Agreement, Representative

8

Plaintiff and the members of the Class and all of their spouses, former spouses,

9

administrators, executors, personal representatives, heirs, agents, attorneys,

10

assigns, predecessors and successors, for good and sufficient consideration, the

11

receipt and adequacy of which is acknowledged, shall be deemed to, and shall in

12

fact, have fully remised, released and forever discharged any and all Released

13

Claims, which they, or any of them, had or has or may in the future have or claim

14

to have against the Released Persons.” The Settlement Agreement further

15

provides that Release Claims “shall mean and include a full release by

16

Representative Plaintiff and each Class Member as to all Release Persons (as

17

defined further in ¶ 1) of any and all claims against all Defendants that exist as of

18

November 30, 2015, and that arise out of or relate in any way to Letters,

19

including, but not be limited to, claims based on a violation of the Fair Debt

20

Collection Practices Act, 15 U.S.C. § 1692 et seq., violation of Washington’s
[PROPOSED] ORDER OF FINAL
SETTLEMENT APPROVAL - 8
CASE NO. 2:14-CV-00235-RMP

1

Consumer Protection Act, RCW 19.86, et seq., or violation of the California

2

Unfair Competition Law, Cal. Bus. & Prof. C., §§ 17200, et seq.

3

15.

As of the Effective Date, all Settlement Class Members agree “not to

4

institute, be represented in, participate in, submit, file, or permit to be filed on

5

their behalf, any lawsuit, arbitration, charge, claim, complaint, or other

6

proceeding in which a Released Claim is asserted. In the event that

7

Representative Plaintiff or any Class Member institutes or is a party to any such

8

action, the claim shall be immediately dismissed with prejudice upon presentation

9

of [the] Settlement Agreement.”

10

16.

Neither this Order nor any aspect of the Settlement Agreement is to

11

be construed or deemed an admission of liability, culpability, negligence, or

12

wrongdoing on the part of Defendants, who specifically deny liability. Each of

13

the Parties to the settlement entered into the Settlement Agreement with the

14

intention to avoid further disputes and litigation with the attendant inconvenience

15

and expenses.

16

17.

Pursuant to the Settlement Agreement, Plaintiff shall file a

17

Stipulation of Dismissal with Prejudice as to Defendants within thirty (30) days

18

after the Effective Date of the Settlement Agreement. The Court will then

19

dismiss this action with prejudice as to all Settlement Class members except those

20

who have timely and properly excluded themselves from the Settlement Class.
[PROPOSED] ORDER OF FINAL
SETTLEMENT APPROVAL - 9
CASE NO. 2:14-CV-00235-RMP

1

Individuals who have timely and properly excluded themselves from the Class

2

and are thus not bound by this Judgment are listed on Exhibit A, which is

3

attached to this order.

4

18.

The entry of this order and any subsequent dismissal is without

5

prejudice to the rights of the Parties to enforce the terms of the Settlement

6

Agreement and the rights of Class Counsel to seek the payment of fees and costs

7

as provided for in the Settlement Agreement. Without affecting the finality of

8

this Order, or the judgment to be entered pursuant hereto, in any way, the Court

9

retains jurisdiction over the claims against Defendants for purposes of resolving

10
11

any disputes that may arise under the Settlement Agreement.
DONE IN OPEN COURT this _______ day of _________________, 2016.

12
13
14

UNITED STATES DISTRICT JUDGE

15

Presented by:

16

TERRELL MARSHALL LAW GROUP PLLC

17

By: /s/ Beth E. Terrell, WSBA #26759
Beth E. Terrell, WSBA #26759
Erika L. Nusser, WSBA #40854
Blythe H. Chandler, WSBA #43387
Attorneys for Plaintiffs936 North 34th Street, Suite 300
Seattle, Washington 98103-8869

18
19
20

[PROPOSED] ORDER OF FINAL
SETTLEMENT APPROVAL - 10
CASE NO. 2:14-CV-00235-RMP

1
2
3
4
5
6
7

Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
Email: [e-mail]
Email: [e-mail]
Deepak Gupta, Admitted Pro Hac Vice
Attorneys for Plaintiff
GUPTA WESSLER PLLC
1735 20th Street, NW
Washington, DC 20009
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]

8
9
10
11
12
13
14
15
16
17
18
19
20
[PROPOSED] ORDER OF FINAL
SETTLEMENT APPROVAL - 11
CASE NO. 2:14-CV-00235-RMP

1
2
3
4

Paul Arons, WSBA #47599
Attorneys for Plaintiffs
LAW OFFICE OF PAUL ARONS
685 Spring Street, Suite 104
Friday Harbor, Washington 98250
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]

5
6
7
8
9
10
11
12
13
14
15

Kirk D. Miller, WSBA #40025
Attorneys for Plaintiffs
KIRK D. MILLER, P.S.
421 W. Riverside Avenue, Suite 704
Spokane, Washington 99201
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
Michael F. Ram
Karl Olson
Susan S. Brown
RAM, OLSON, CEREGHINO
& KOPCZYNSKI
101 Montgomery Street, Suite 1800
San Francisco, California 94104
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
Email: [e-mail]
Email: [e-mail]

16
Attorneys for Plaintiffs
17
18
19
20
[PROPOSED] ORDER OF FINAL
SETTLEMENT APPROVAL - 12
CASE NO. 2:14-CV-00235-RMP

1
CERTIFICATE OF SERVICE
2
I, Beth E. Terrell, hereby certify that on March 10, 2016, I electronically
3
filed the foregoing with the Clerk of the Court using the CM/ECF system which
4
will send notification of such filing to the following:
5
6
7
8
9
10
11

Scott C. Cifrese, WSBA #25778
David L. Broom, WSBA #2096
Attorneys for Defendants
PAINE HAMBLEN LLP
717 W. Sprague Ave., Suite 1200
Spokane, Washington 99201
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
Email: [e-mail]
DATED this 10th day of March, 2016.

12

TERRELL MARSHALL LAW GROUP PLLC

13

By: /s/ Beth E. Terrell, WSBA #26759
Beth E. Terrell, WSBA #26759
Attorneys for Plaintiffs
936 North 34th Street, Suite 300
Seattle, Washington 98103-8869
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]

14
15
16
17
18
19
20

[PROPOSED] ORDER OF FINAL
SETTLEMENT APPROVAL - 13
CASE NO. 2:14-CV-00235-RMP

- Exhibit B -

A COURT AUTHORIZED
THIS LEGAL NOTICE
If you received at least one letter on
county prosecutor or district
attorney letterhead requiring you
to pay for a “Check Enforcement
Program,” you may be entitled to
benefits under a class action
settlement.
A settlement has been reached in two
class action lawsuits, Cavnar, et al. v.
Bounceback, Inc., et al.,
No. 2:14-cv-00235-RMP (U.S. District
Court E.D. Wash.) and Freitas, et al. v.
Bounceback, Inc., et al., No. 3:15-cv03560-RS (U.S. District Court N.D. Cal.),
where Plaintiffs allege that Defendants
issued collection demands on county
prosecutor or district attorney letterhead in
Washington and California. In agreeing to
settle, Defendants do not admit any
wrongdoing.

Bounceback Settlement Administrator

P.O. Box XXXXX
XXXXXXXXXX, XX XXXXX-XXXX

«Barcode»
Postal Service: Please do not mark barcode

Claim#: XXX-«ClaimID»-«MailRec»
«First1» «Last1»
«CO»
«Addr2»
«Addr1»
«City», «St» «Zip»
«Country»

WHO IS A CLASS MEMBER?
You may be in the Settlement Class if you received a collection letter on county prosecutor or district attorney letterhead
stating that to avoid prosecution for writing a dishonored check, you had to pay for a “Check Enforcement Program.”
SETTLEMENT TERMS
Defendants will pay $530,000.00 into a fund that will cover: (1) at least $244,813 for cash payments to eligible Settlement Class
Members; (2) attorneys’ fees to Class Counsel and Class Counsel’s out-of-pocket expenses as approved by the Court; (3) courtapproved service awards of up to $2,000 each for each of the seven class representatives; and (4) the costs of administering the
settlement. The $244,813 will be divided among Settlement Class Members who receive this Notice. You will receive
approximately 14% of any fees you paid to the Defendants. If you did not pay fees, then you will receive an award of $5.00.
YOUR RIGHTS AND OPTIONS
Settlement Awards. You do not need to do anything to receive a cash award. If you received this postcard Notice by mail you will
receive a cash award, unless you exclude yourself from the settlement.
Do Nothing. If you do nothing, you will receive payment at the address where you received this postcard Notice and you will
lose the right to sue regarding any issues relating to this action. You will be considered part of the Settlement Class, and you
will be bound by the Court’s decisions.
Opt Out. You may exclude yourself from the lawsuit and keep your right to sue Defendants on your own by sending a
written request for exclusion to the Claims Administrator by *****, 2016. If you exclude yourself you will not receive a
payment. If you do not exclude yourself, you will be bound by the settlement and give up your right to sue regarding the
settled claims. Please see the Settlement Website for more details or call 1-855-349-7023.
Object. If you do not exclude yourself, you have the right to comment or object to the proposed settlement. Written
objections must be signed, postmarked by *****, 2016, and provide the reasons for the objection. Please see the Settlement
Website for more details or call 1-855-349-7023.
Attend the Final Approval Hearing. The Court has set a hearing to decide whether the settlement should be approved on July
20, 2016 at 1:30 p.m. at the United States District Court for the Eastern District of Washington, located at 920 West Riverside
Ave, Room 840, Spokane, WA 99201. All persons who timely object to the settlement by *****, 2016 may ask to appear at the
Final Approval Hearing. The Court will also consider Class Counsel’s fee request, which will be posted on the Settlement
website on *****, 2016. Class Counsel is seeking an initial payment of up to $243,186, plus any unclaimed settlement funds.
This Notice is only a summary. Details about the settlement can be found on the website:
www.XXXXXX.com.
Please do not contact the Court.

- Exhibit C -

1
2
3
4
5
6

Beth E. Terrell, WSBA #26759
Erika L. Nusser, WSBA #40854
Blythe H. Chandler, WSBA #43387
Attorneys for Plaintiffs
TERRELL MARSHALL LAW GROUP PLLC
936 North 34th Street, Suite 300
Seattle, Washington 98103-8869
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
Email: [e-mail]
Email: [e-mail]

7
[Additional Counsel Appear on Signature Page]
8
IN THE UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF WASHINGTON

9
10
11
12
13

WODENA CAVNAR, ROSALINE
TERRILL, LINDA PARKS, DAVID
SCOTT, ANGELINA FREITAS,
REBECCA LYON and MARESA
KENDRICK, on their own behalf and
on the behalf of all others similarly
situated,
Plaintiffs,

14
15
16
17
18
19

NO. 2:14-cv-00235-RMP
[PROPOSED] ORDER
GRANTING PLAINTIFFS’
UNOPPOSED MOTION FOR
PRELIMINARY APPROVAL OF
CLASS ACTION SETTLEMENT

v.
BOUNCEBACK, INC., a Missouri
Corporation, CHECK CONNECTION,
INC., a Kansas corporation, STONE
FENCE HOLDINGS, INC., a Missouri
corporation, and GALE KRIEG,
Defendants.

20
[PROPOSED] ORDER GRANTING PLAINTIFFS’ UNOPPOSED
MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION
SETTLEMENT - 1
CASE NO. 2:14-CV-00235-RMP

1

WHEREAS, the Parties have entered into a Settlement Agreement and

2

Release of Claims (“Agreement”), 1 which sets forth the terms and conditions of

3

the settlement and release of certain claims against Defendants BounceBack, Inc.

4

(“BounceBack”), Check Connection, Inc. (“Check Connection”), Stone Fence

5

Holdings, Inc. (“Stone Fence”), and Gale Krieg (“Krieg” or collectively

6

“Defendants”); the Court having reviewed and considered the Agreement and all

7

of the filings, records, and other submissions; the Court finds upon a preliminary

8

examination that the Agreement appears fair, reasonable, and adequate, and that a

9

hearing should and will be held after notice to the Settlement Class in order to

10

confirm that the settlement is fair, reasonable, and adequate, and to determine

11

whether the Settlement Order and Final Judgment should be entered in this

12

Action pursuant to the terms and conditions set forth in the Agreement (“Final

13

Approval Hearing”).

14

THEREFORE, THE COURT FINDS AND CONCLUDES AS

15

FOLLOWS:

16

1.

17

This Court has jurisdiction over the subject matter of this Action and

personal jurisdiction over the Parties and the Settlement Class.

18
19
20

1

Capitalized terms shall have the meaning ascribed to them in the Agreement.
[PROPOSED] ORDER GRANTING PLAINTIFFS’ UNOPPOSED
MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION
SETTLEMENT - 2
CASE NO. 2:14-CV-00235-RMP

1

2.

The Court finds that (a) the Agreement resulted from extensive

2

arm’s-length negotiations, with participation of an experienced mediator, and (b)

3

the Agreement is sufficient to warrant notice thereof to members of the

4

Settlement Class and the Final Approval Hearing described below.

5

3.

Pursuant to Rule 23(b)(3) of the Federal Rules of Civil Procedure,

6

and for the purposes of settlement only, the Settlement Class is preliminarily

7

certified as:

8
9
10
11
12
13
14
15
16

All persons who: (a) were sent one or more Letters bearing the
name, seal, or letterhead of any prosecuting attorney in
Washington, from July 18, 2013 to November 30, 2015; or (b)
were sent one or more Letters bearing the name, seal, or letterhead
of any prosecuting attorney in Washington, from July 18, 2010 to
November 30, 2015 and who paid any of Defendants’ Fees; or (c)
who were sent one or more Letters bearing the name, seal, or
letterhead of any district attorney in Lake, Mendocino, Plumas,
San Benito, Sutter, or Yuba County, California from August 3,
2014 to November 30, 2015; or (d) were sent one or more Letters
bearing the name, seal, or letterhead of any district attorney in
Lake, Mendocino, Plumas, San Benito, Sutter, or Yuba County,
California from August 3, 2011 to November 30, 2015 and who
paid any of Defendants’ Fees; and appear on the Settlement Class
List.
4.

“Settlement Class Members” include members of the Settlement

17

Class that do not opt-out from the action. The Settlement Class also does not

18

include any persons who validly request exclusion from the Class.

19
20

5.

For purposes of settlement only, the Court hereby appoints Plaintiffs

Wodena Cavnar, Rosaline Terrill, Linda Parks, David Scott, Angelina Freitas,
[PROPOSED] ORDER GRANTING PLAINTIFFS’ UNOPPOSED
MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION
SETTLEMENT - 3
CASE NO. 2:14-CV-00235-RMP

1

Rebecca Lyon and Maresa Kendrick as “Class Representatives” pursuant to Rule

2

23 of the Federal Rules of Civil Procedure, and finds that, for settlement purposes

3

only, these Class Representatives have and will fairly and adequately protect the

4

interests of the Settlement Class.

5

6.

For purposes of settlement only, the Court appoints the attorneys at

6

Terrell Marshall Law Group PLLC, Gupta Wessler PLLC, Law Office Paul

7

Arons, Kirk D. Miller, P.S., and Ram, Olson, Cereghino & Kopczynski as Class

8

Counsel and finds that for settlement purposes, Class Counsel have and will fairly

9

and adequately protect the interests of the Settlement Class.

10

7.

The Court preliminarily finds that the Agreement is fundamentally

11

fair, adequate, and reasonable, and for the purposes of settlement only, that the

12

Settlement Class satisfies the requirements of Rule 23 of the Federal Rules of

13

Civil Procedure as follows:

14

a.

15

The number of members in the Settlement Class appears to be

so numerous that joinder of all members is impracticable;

16

b.

There appear to be common questions of law and fact;

17

c.

The claims of the Class Representatives appear to be typical of

18

the claims of the Settlement Class;

19
20
[PROPOSED] ORDER GRANTING PLAINTIFFS’ UNOPPOSED
MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION
SETTLEMENT - 4
CASE NO. 2:14-CV-00235-RMP

1

d.

The Class Representatives and Class Counsel appear to be

2

able to fairly and adequately represent and protect the interests of the Settlement

3

Class;

4

e.

The questions of law and fact common to the members of the

5

Settlement Class appear to predominate over individual questions of law and fact;

6

and

7
8
9

f.

A class action settlement appears to be superior to other

methods of adjudication.
8.

The Court appoints Kurtzman Carson Consultants as the Class

10

Administrator, who shall fulfill the functions, duties, and responsibilities of the

11

Class Administrator as set forth in the Agreement and this Order.

12

9.

The Court approves the proposed forms of notice and notice plan for

13

giving direct notice to the Settlement Class by U.S. Mail as set forth in the

14

Agreement and its attached exhibits (“Notice Plan”). The Notice Plan, in form,

15

method, and content, fully complies with the requirements of Rule 23 and due

16

process, constitutes the best notice practicable under the circumstances, and is due

17

and sufficient notice to all persons entitled thereto. The Court finds that the

18

Notice Plan is reasonably calculated to, under all circumstances, reasonably

19

apprise the persons in the Settlement Class of the pendency of this action, the

20

terms of the Agreement, the right to object to the settlement and to exclude
[PROPOSED] ORDER GRANTING PLAINTIFFS’ UNOPPOSED
MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION
SETTLEMENT - 5
CASE NO. 2:14-CV-00235-RMP

1

themselves from the Settlement Class, and the process for submitting a claim for

2

monetary relief.

3

10.

Pursuant to the Agreement, the Class Administrator shall provide

4

individual notice via U.S. Mail to the most recent mailing address as reflected in

5

Defendants’ reasonably available computerized account records (which the Class

6

Administrator shall update through the national change of address system) no

7

later than _____________, which is thirty (30) days following entry of this Order.

8
9

11.

Members of the Settlement Class may exclude themselves from the

Settlement Class by advising the Class Administrator either through an online

10

opt-out form or by mailing a written request no later than ____________ (“Opt-

11

Out Deadline”), which is sixty (60) days after the date notice is sent to the

12

Settlement Class. All written requests must be signed, and if mailed, must be

13

postmarked no later than the Opt-Out Deadline.

14

12.

Any Settlement Class Member who desires to object to the fairness

15

of this settlement must file a written objection with the Court by ____________

16

(“Objection Deadline”), which is sixty (60) days from the date notice is mailed to

17

the Settlement Class. The objection must provide the objector’s name, address,

18

telephone number at which the calls were received, and the reason(s) for the

19

objection.

20
[PROPOSED] ORDER GRANTING PLAINTIFFS’ UNOPPOSED
MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION
SETTLEMENT - 6
CASE NO. 2:14-CV-00235-RMP

1

13.

Anyone who properly objects, as described herein, may appear at the

2

Final Approval Hearing, including through an attorney hired at the objector’s

3

expense. Such objectors or their attorneys intending to appear at the Final

4

Approval Hearing must file a notice of appearance with this Court no later than

5

ten (10) days prior to the Final Approval Hearing. Any member of the Settlement

6

Class who fails to comply with the provisions herein shall waive and forfeit any

7

and all rights to appear and/or object separately, and shall be bound by the terms

8

of this settlement and the orders and judgments of this Court. Class Counsel shall

9

file responses to any valid objections no later than fourteen (14) days prior to the

10

Final Approval Hearing. Defendants’ counsel also may file responses, but no

11

later than fourteen (14) days prior to the Final Approval Hearing.

12

14.

Pursuant to Rule 23(e) of the Federal Rules of Civil Procedure a

13

hearing will be held before this Court to finally determine whether the

14

prerequisites for class certification and treatment under Rule 23(a) and (b) of the

15

Federal Rules of Civil Procedure are met; to determine whether the settlement is

16

fair, reasonable, and adequate, and should be approved by this Court; to

17

determine whether the Settlement Order and Final Judgment under this settlement

18

should be entered; to consider the application for attorneys’ fees and expenses of

19

Class Counsel; to consider the application for service awards to the class

20

representatives; to consider the distribution of the Settlement Fund pursuant to the
[PROPOSED] ORDER GRANTING PLAINTIFFS’ UNOPPOSED
MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION
SETTLEMENT - 7
CASE NO. 2:14-CV-00235-RMP

1

Agreement; and to rule on any other matters that the Court may deem appropriate.

2

At the Final Approval Hearing, the Court may enter the Settlement Order and

3

Final Judgment in accordance with the Agreement that will adjudicate the rights

4

of the Settlement Class Members.

5

15.

The Final Approval Hearing is scheduled for _______________.

6

16.

All memoranda and other submissions in support of the Settlement

7

Order and Final Judgment and this settlement shall be filed no later than fourteen

8

(14) days prior to the Final Approval Hearing, including proof of compliance with

9

the notice provisions of the Class Action Fairness Act of 2005 (“CAFA”), 28

10

U.S.C. § 1715.

11

17.

12
13

All notice and Settlement Administration expenses shall be paid

from the Settlement Fund pursuant to the Agreement.
18.

On or before thirty (30) days after the Notice Date, Class Counsel

14

shall file and serve an application for an award of attorneys’ fees and

15

out-of-pocket costs, and an application for service awards to Plaintiffs. The

16

application shall be posted on the settlement website within twenty-four hours

17

after the day it is filed.

18

19.

On or before fourteen (14) days prior to the Final Approval Hearing,

19

Class Counsel shall file and serve a motion for final approval and responses to

20

any objections.
[PROPOSED] ORDER GRANTING PLAINTIFFS’ UNOPPOSED
MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION
SETTLEMENT - 8
CASE NO. 2:14-CV-00235-RMP

1

20.

All members of the Settlement Class will be bound by all orders

2

pertaining to the settlement unless such persons request exclusion from the

3

Settlement Class. Members of the Settlement Class who do not timely and validly

4

request exclusion shall be so bound, even if they have previously or subsequently

5

initiated individual litigation or other proceedings against the Released Parties

6

relating to the Release Claims.

7

21.

Settlement Class Members do not need to appear at the Final

8

Approval Hearing or take any other action to indicate their approval and partake

9

in this settlement.

10

22.

This Order and the settlement are not admissions or concessions by

11

Defendants of any liability or wrongdoing. This Order is not a determination of

12

liability or wrongdoing. This Order also does not constitute any opinion or

13

position of this Court as to the merits of the claims and defenses related to this

14

Action.

15

23.

This Action is stayed until further ordered by this Court, except such

16

actions and proceedings that may be necessary to implement this settlement and

17

Order.

18

24.

Pending final determination of whether the settlement should be

19

approved, Plaintiffs, all Settlement Class Members and any person or entity

20

allegedly acting on behalf of Settlement Class Members, either directly,
[PROPOSED] ORDER GRANTING PLAINTIFFS’ UNOPPOSED
MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION
SETTLEMENT - 9
CASE NO. 2:14-CV-00235-RMP

1

representatively or in any other capacity, are preliminarily enjoined from

2

commencing or prosecuting against the Released Parties any action or proceeding

3

in any court or tribunal asserting any of the Released Claims, provided, however,

4

that this injunction shall not apply to individual claims of any Settlement Class

5

Members who timely exclude themselves in a manner that complies with this

6

Order. This injunction is necessary to protect and effectuate the settlement, this

7

Order, and the Court’s flexibility and authority to effectuate this settlement and to

8

enter judgment when appropriate, and is ordered in aid of the Court’s jurisdiction

9

and to protect its judgments pursuant to 28 U.S.C. § 1651(a).

10

25.

If Final Approval does not occur, the parties shall be returned to the

11

status quo ex ante, for all litigation purposes, as if no settlement had been

12

negotiated or entered into and thus this Order and all other findings or stipulations

13

regarding the settlement, including but not limited to, certification of the

14

Settlement Class, and the Plaintiffs’ Second Amended Complaint in this action,

15

shall be automatically void, vacated, and treated as if never filed.

16

26.

Counsel for the parties are hereby authorized to utilize all reasonable

17

procedures in connection with the administration of the settlement which are not

18

materially inconsistent with either this Order or the terms of the Settlement

19

Agreement.

20
[PROPOSED] ORDER GRANTING PLAINTIFFS’ UNOPPOSED
MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION
SETTLEMENT - 10
CASE NO. 2:14-CV-00235-RMP

1

27.

This Court retains jurisdiction to consider all further matters arising

2

out of or connected with the settlement. The Court reserves the right to adjourn or

3

continue the date of the Final Approval Hearing without further notice to

4

Settlement Class Members, and retains jurisdiction to consider all further

5

applications arising out of or connected with the settlement. The Court may

6

approve or modify the settlement without further notice to Settlement Class

7

Members.

8

28.

9
10
11

The following timeline will govern proceedings through the Final

Approval Hearing:
DEADLINE

EVENT

Ten days after entry of this Order

Deadline for Defendants to serve
CAFA Notice

Thirty days after entry of this Order

Deadline to mail notice

Thirty days after entry of this Order

Deadline to make the settlement
website available

Sixty days after entry of this Order

Deadline for Class Counsel to file
their motion for attorneys’ fees,
costs, and incentive awards to the
class representatives

Ninety days after entry of this Order

Deadline for Settlement Class
Members to submit exclusion
requests or objections

12
13
14
15
16
17
18
19
20

[PROPOSED] ORDER GRANTING PLAINTIFFS’ UNOPPOSED
MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION
SETTLEMENT - 11
CASE NO. 2:14-CV-00235-RMP

1
2
3
4
5

DEADLINE
Fourteen days before Final Approval
Hearing

EVENT
Deadline to file responses to
objections and motion for final
approval

At the court’s convenience but no
Final Approval Hearing
earlier than 120 days after entry of this
order

6

IT IS HEREBY ORDERED.

7

DATED this ___ day of ___________, 20____.

8
9
UNITED STATES DISTRICT JUDGE
10
11
12
13
14
15
16
17
18
19
20
[PROPOSED] ORDER GRANTING PLAINTIFFS’ UNOPPOSED
MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION
SETTLEMENT - 12
CASE NO. 2:14-CV-00235-RMP

- Exhibit D -

UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF WASHINGTON
Cavnar, et al. v. Bounceback, Inc., et al.
Case No. 2:14-cv-00235-RMP
and
UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA
Freitas, et al. v. Bounceback, Inc., et al.
Case No. 3:15-cv-03560-RS

If you received at least one letter on county
prosecutor or district attorney letterhead stating
that to avoid prosecution for writing a
dishonored check, you had to pay for a “Check
Enforcement Program,” you may be entitled to
benefits under a class action settlement.
A court authorized this notice. This is not a solicitation from a lawyer.
Wodena Cavnar, Rosaline Terrill, Linda Parks, David Scott, Angelina Freitas,
Rebecca Lyon, and Maresa Kendrick (“Plaintiffs”), have sued Bounceback, Inc.,
Stone Fence Holdings, Inc., Check Connection, Inc., and Gale Krieg (“Defendants”),
alleging that to collect dishonored checks they mailed collection demands on county
prosecutor or district attorney letterhead. In the letters Defendants demanded the
check amount, plus fees for a “Check Enforcement Program” that check writers were
told they had to pay to avoid criminal prosecution.
The Court presiding over the Cavnar case has issued a preliminary order approving
the settlement in both the Cavnar (WA) and Freitas (CA) cases and will decide
whether the proposed settlement should be approved.
Defendants have agreed to pay $530,000 into a fund from which eligible class
members will receive cash awards, estimated to be at least fourteen percent (14%) of
the program fees class members paid to Defendants. Class members who did not pay
any fees will receive an award of $5.
Court-appointed lawyers for the class (“Class Counsel”) will ask the Court for up to
$243,186, of the settlement as their reasonable attorney’s fees and to reimburse them
for the out-of-pocket expenses they paid to investigate the facts, litigate the case, and
negotiate the settlement. Class counsel will also ask for a supplemental award of
attorneys’ fees and costs, to be paid from any funds that remain undistributed after
class members have been paid.
The class administrator who mailed the postcard notice, set up the settlement website,
and will mail settlement checks will be paid up to $28,000 of the settlement funds for
its work.
As part of the proposed settlement, Defendants do not admit to any wrongdoing and
continue to deny the allegations against them.
The two sides disagree on whether Plaintiffs and the class could have won at trial.
QUESTIONS? CALL 1-855-349-7023 TOLL FREE OR VISIT WWW.XXXXXX.COM
-1-

Your legal rights are affected whether you act, or don’t act. Please read this notice
carefully.
YOUR LEGAL RIGHTS AND OPTIONS IN THIS LAWSUIT

DO NOTHING

This is how you receive payment. If you received a postcard
Notice about this lawsuit in the mail and you do nothing, you
will be considered part of the Settlement Class and payment
will be sent to the address where you received the postcard
Notice. If you do nothing, you will be giving up any right to
proceed against the Defendants individually.
Get out of this lawsuit. Get no benefits from it. Keep rights.

ASK TO BE EXCLUDED

If you ask to be excluded and moneys are awarded, you won’t
share in those. But, you keep any rights to sue Defendants
separately about the same legal claims in this lawsuit.

BASIC INFORMATION
1. What is this Notice and why should I read it?
The purpose of this Notice is to let you know that a proposed settlement has been reached in the
class action lawsuits entitled Cavnar, et al. v. Bounceback, Inc., et al., No. 2:14-cv-00235-RMP and
Freitas, et al. v Bounceback, Inc. et al, No. 3:15-cv-03560-RS. Judge Rosanna Malouf Peterson of
the United States District Court for the Eastern District of Washington preliminarily approved the
proposed settlement in both lawsuits. You have legal rights and options that you may act on before
the Court decides whether to grant final approval of the proposed settlement. Because your rights
will be affected by this settlement, it is extremely important that you read this Notice carefully.
2. Why did I receive this Notice?
Defendants’ records show that you may have received one or more collection demands on county
prosecutor or district attorney letterhead stating that to avoid prosecution for writing a dishonored
check, you had to pay for a “Check Enforcement Program.” This notice explains that the Court has
preliminarily approved the settlement of the claims in this lawsuit. You have legal rights and
options that you may exercise before the fairness hearing (also known as a “final approval hearing”).
The fairness hearing is to decide whether the settlement agreement is fair, reasonable, adequate, and
in the best interest of the class.
3. What is this lawsuit about?
In a class action, one or more people, called class representatives, sue on behalf of people who have
similar claims. All of these people are a class, or class members. One court resolves the issues for
all class members, except those who exclude themselves from the class.
Generally the claims in this case are that Defendants violated the law by collecting debts in the name
of the county prosecutor, demanding fees for a Check Enforcement Program that were not permitted
by law, and by falsely threatening to prosecute check writers who did not pay those fees.
More specifically, the class representatives claim that, on or after July 18, 2010 in Washington on or
after August 3, 2011 in California (Lake, Mendocino, Plumas, San Benito, Sutter, or Yuba counties),
Defendants violated state and federal laws by using false, deceptive or misleading communications
to collect debts. The class representatives also claim that Defendants violated the law by soliciting
QUESTIONS? CALL 1-855-349-7023 TOLL FREE OR VISIT WWW.XXXXXX.COM
-2-

claims for collection while not licensed as a collection agency; collecting or attempting to collect
debts owed or due or asserted to be owed or due another person while not licensed as a collection
agency; using a fictitious name or any name other than its own which would indicate to the debtor
that a third person is collecting or attempting to collect such alleged debts; making false threats and
collecting fees not permitted by law; collecting substantial compensation and fees from Plaintiffs
and other Class Members while operating as a collection agency without a license; and aiding and
abetting one another in said unlawful conduct. Plaintiffs allege that by this conduct Defendants
violated the Fair Debt Collection Practices Act (“FDCPA”), the Washington Consumer Protection
Act (“CPA”), and the California Unfair Competition Law (“UCL”).
Defendants deny that they did anything wrong.

THE SETTLEMENT
4. Why is there a settlement?
The Court did not decide in favor of Plaintiffs or Defendants. Instead, both sides agreed to a
settlement. This way, they avoid the cost of a trial, and the people affected will receive
compensation. The class representatives and their attorneys think the settlement is best for the
Settlement Class.

WHO IS IN THE SETTLEMENT?
5. How do I know if I am a part of the settlement?
You are in the Settlement Class if:
1) On or after July 18, 2010, you, received a collection demand on Washington county
prosecutor letterhead stating that to avoid prosecution for writing a dishonored check, you
had to pay for a “Check Enforcement Program,” and you paid any fees to Defendants; or
2) On or after July 18, 2013, you and received a collection demand on Washington county
prosecutor letterhead stating that to avoid prosecution for writing a dishonored check, you
had to pay for a “Check Enforcement Program”; or
3) On or after August 3, 2011, you received a collection demand on Lake, Mendocino, Plumas,
San Benito, Sutter, or Yuba County district attorney letterhead stating that to avoid
prosecution for writing a dishonored check, you had to pay for a “Check Enforcement
Program,” and you paid any fees to Defendants; or
4) On or after August 3, 2014, you received a collection demand on Lake, Mendocino, Plumas,
San Benito, Sutter, or Yuba County district attorney letterhead stating that to avoid
prosecution for writing a dishonored check, you had to pay for a “Check Enforcement
Program.”
You are not in the Settlement Class unless Defendants listed you as one of the people to whom it
sent the letters described above. The Settlement Class also does not include any persons who validly
request exclusion from the Settlement Class, as described under Question 11. A person meeting the
criteria in (1) through (4), above, who does not exclude him or herself is a “Settlement Class
Member.”
If you have questions about whether you are part of the Settlement Class, you may call 1-855-3497023 or visit www.XXXXXX.com for more information.

THE SETTLEMENT BENEFITS
QUESTIONS? CALL 1-855-349-7023 TOLL FREE OR VISIT WWW.XXXXXX.COM
-3-

6. What does the Settlement provide?
Members of the Settlement Class will receive a Settlement Award reflecting a percentage of the
program fees the Settlement Class Member paid to Defendants, provided however that each
Settlement Class Member will receive a minimum Settlement Award of $5. Class Counsel estimates
that these Settlement Awards will be at least fourteen percent (14%) of the program fees paid by
each CPA/UCL Settlement Class Member. Members of the Settlement Class who did not pay any
fees will receive a statutory damages award of $5.
7. How much will my payment be?
Your share of the settlement will depend on the number of Notices that are successfully mailed to
Settlement Class Members. Class Counsel estimates that each Settlement Class Member who paid
fees will receive at least fourteen percent (14%) of the fees he or she paid. Each payment will be at
least $5. Settlement Class Members who did not pay any fees will receive $5.

HOW YOU GET A PAYMENT
8. How do I make a claim?
If you received a postcard Notice you will automatically receive a payment. You do not need to
submit a claim form or contact anyone. If you did not receive a postcard Notice but believe you are
in the Settlement Class, you must call the toll-free number listed below.
9. When will I get my payment?
Within forty (40) calendar days from the entry of the Court’s Final Approval Order, the Class
Administrator will mail checks to Settlement Class Members. The checks will be valid for 120 days
from the date of issuance.
10. What am I giving up to get a payment or stay in the Settlement Class?
Unless you exclude yourself, you will be part of the Settlement Class and a Settlement Class
Member. That means you may not sue, continue to sue, or be part of any other lawsuit against the
Defendants. It also means that all of the Court’s orders will apply to you and legally bind you.
The Settlement Agreement (available at www. XXXXXX.com) describes the claims you are
releasing (the “Released Claims”) and against whom you are releasing claims (Defendants) in detail,
so read it carefully. To summarize, the release includes all claims that arise out of or relate in any
way to any letter that Defendants sent to you, referring or relating to a returned check, and bearing
the name, seal, or letterhead of any prosecuting attorney in Washington, or of a district attorney in
Lake, Mendocino, Plumas, San Benito, Sutter, or Yuba counties in California. Released Claims
include, but may not be limited to, claims based on a violation of the Fair Debt Collection Practices
Act, Washington Consumer Protection Act, California Unfair Competition Law, and any other
statutory or common law claim.

EXCLUDING YOURSELF FROM THE SETTLEMENT
If you don’t want a payment from this settlement, but you want to keep the right to sue or continue
to sue the Defendants, then you must take steps to remove yourself from the Settlement Class. This
is called excluding yourself – or is sometimes referred to as “opting out” of the Settlement Class.
11. How do I opt out of the settlement?
To exclude yourself from the settlement you may either opt out through the Exclusion Request Form
at www.XXXXXX.com or you must send a letter saying that you want to be excluded from the

QUESTIONS? CALL 1-855-349-7023 TOLL FREE OR VISIT WWW.XXXXXX.COM
-4-

Cavnar v. Bounceback settlement. You must include your name and address in the letter. You must
mail your exclusion request postmarked no later than ______ to the following address:
Bounceback Settlement Administrator
P.O. Box ____
__________, __ _____-____
You cannot exclude yourself on the phone, by fax, or email. If you ask to be excluded, you will not
get any payment, and you cannot object to the settlement. You will not be legally bound by
anything that happens in this lawsuit. You may be able to sue (or continue to sue) the Defendants in
the future.
12. If I don’t exclude myself, can I sue the Defendants for the same thing later?
No. Unless you exclude yourself, you give up any right to sue the Defendants for the claims that this
settlement resolves. If you already have a lawsuit that may relate to the claims being released as part
of this class settlement, you should speak to your lawyer in that case immediately. You must
exclude yourself from this Settlement Class to continue your own lawsuit. The exclusion deadline is
___________.
13. If I exclude myself, can I get anything from this settlement?
No. You will not receive a payment if you exclude yourself.

EXCLUDING YOURSELF FROM THE SETTLEMENT
14. Do I have a lawyer in this case?
The Court has appointed Terrell Marshall Law Group PLLC; Gupta Wessler PLLC; the Law Office
of Paul Arons; Kirk D. Miller, P.S.; and Ram, Olson, Cereghino & Kopczynski to represent you and
other Settlement Class Members. These lawyers are called Class Counsel. You will not be charged
for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own
expense.
15. How will the lawyers be paid?
Class Counsel will ask the Court to approve payment of up to $243,186 to them for attorneys’ fees
and their out-of-pocket expenses. Class Counsel will also ask that the Court award them any
unclaimed settlement funds remaining after all settlement checks have been cashed or have expired.
These payments would pay Class Counsel for investigating the facts, litigating the case, negotiating
the settlement and for administration costs. Class Counsel will also request awards of $2,000 each
for the named Plaintiffs to compensate them for their time and effort and for statutory damages
under the FDCPA. Class Counsel’s complete request for fees, costs, and incentive awards to the
named Plaintiffs will be posted on the Settlement Website www.XXXXXXX.com on ****, 2016.
The Court may award less than these amounts.

OBJECTING TO THE SETTLEMENT
16. How do I object to the settlement?
If you are a Settlement Class Member and you do not exclude yourself from the Settlement Class,
you can object to the settlement if you don’t like any part of it. Your written objection must provide
your name, address, telephone number, and the reason(s) for your objection. You must file the
objection with the Court no later than _______, by mailing it to:
Cavnar, et al. v. Bounceback, Inc.
Case No. 2:14-CV-00235-RMP
QUESTIONS? CALL 1-855-349-7023 TOLL FREE OR VISIT WWW.XXXXXX.COM
-5-

Clerk of the Court
U.S. District Court for the Eastern District of Washington
P.O. Box 1493
Spokane, WA 99210
17. What is the difference between objecting and excluding myself from the settlement?
Objecting simply means telling the Court that you don’t like something about the settlement. You
can object only if you stay in the Settlement Class. Excluding yourself from the Settlement Class is
telling the Court that you don’t want to be part of the Settlement Class. If you exclude yourself, you
have no basis to object because the case no longer affects you.

THE COURT’S FAIRNESS HEARING
18. When and where will the Court hold a hearing on the fairness of the settlement?
The Court will hold the final fairness hearing at 1:30 p.m. on July 20, 2016, before the Honorable
Rosanna Malouf Peterson at the United States District Court for the Eastern District of Washington,
920 West Riverside Ave., Room 840, Spokane, Washington 99201. The purpose of the hearing is
for the Court to determine whether the settlement is fair, reasonable, adequate, and in the best
interest of the class. At the hearing, the Court will hear any objections and arguments concerning
the fairness of the proposed settlement, including those related to the amount requested by Class
Counsel for attorneys’ fees and expenses and the incentive and damage awards to the Class
Representatives. After the hearing, the Court will decide whether to approve the settlement. We do
not know how long these decisions will take.
Note: The date and time of the fairness hearing are subject to change by Court Order. Any changes
will be posted at the Settlement website, www. XXXXXX.com.
19. Do I have to come the hearing?
No. Class Counsel will answer any questions the Court may have. You are welcome to come to the
hearing at your own expense. If you send an objection you don’t have to come to the Court to talk
about it. As long as your written objection was filed or mailed on time, and meets the other criteria
described in the Settlement Agreement, the Court will consider it. You may also pay a lawyer to
attend, but you don’t have to.
20. May I speak at the hearing?
If you do not exclude yourself from the Settlement Class, you may ask the Court for permission to
speak at the hearing concerning any part of the proposed Settlement Agreement. If you filed an
objection (see Question 16 above) and intend to appear at the hearing, you must state your intention
to do so in your objection. To speak, you must send a letter saying that it is your “Notice of
Intention to Appear” in “Cavnar, et al. v. Bounceback, Inc., et al., Case No. 2:14-cv-00235-RMP.”
Be sure to include your name, address, telephone number, that you are a Class Member, and your
signature. Your Notice of Intention to Appear must be received at the address in Question 16, no
later than _________. You cannot speak at the hearing if you exclude yourself.

IF YOU DO NOTHING
21. What happens if I do nothing at all?
If you do nothing, you will be a member of the Settlement Class and you will be sent a payment.
QUESTIONS? CALL 1-855-349-7023 TOLL FREE OR VISIT WWW.XXXXXX.COM
-6-

GETTING MORE INFORMATION
22. Are there more details about the settlement?
This Notice summarizes the proposed settlement. More details are in the Settlement Agreement.
You may review the Settlement Agreement on the Settlement Website at www.XXXXXX.com.
You can also get a copy of the Settlement Agreement by writing to Blythe Chandler, Terrell
Marshall Law Group PLLC, 936 N. 34th Street, Suite 300, Seattle, Washington 98103.
23. How do I get more information?
You can call 1-855-349-7023 toll free; write to Bounceback Settlement Administrator, P.O. Box
_____, __________, __ _____-____; or visit the website at www.XXXXXX.com where you will
find answers to common questions about the settlement, the Exclusion Request Form, the Settlement
Agreement, Plaintiffs’ Second Amended Complaint, Class Counsel’s motion for an award of
attorneys’ fees and costs, and other information.
PLEASE DO NOT CONTACT THE COURT, THE JUDGE, OR THE DEFENDANTS WITH
QUESTIONS ABOUT THE SETTLEMENT.

QUESTIONS? CALL 1-855-349-7023 TOLL FREE OR VISIT WWW.XXXXXX.COM
-7-