Middle Rider v. Moving Solutions, Inc

Filing 174

Order Modifying Order Granting Final Approval. Signed by Judge Lucy H. Koh on 2/22/2021. (lhklc3S, COURT STAFF) (Filed on 2/22/2021)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SAN JOSE DIVISION

United States District Court
Northern District of California

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BARBARA MIDDLE RIDER for GARY
MIDDLE RIDER, et al.,

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Case No. 17-CV-04015-LHK
ORDER MODIFYING ORDER
GRANTING FINAL APPROVAL

Plaintiffs,

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v.

Re: Dkt. Nos. 163, 165, 173

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MOVING SOLUTIONS, INC, et al.,
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Defendants.

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On May 1, 2020, the Court granted final approval of the parties’ class action settlement,

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dismissed this case with prejudice, and entered final judgment. ECF No. 163, 164. Yet on January

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20, 2021, Plaintiffs notified the Court that one of the three Defendants—Moving Solutions, Inc.

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(“Moving Solutions”)—has failed to pay its $20,000 portion of the $470,000 that was due to the

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settlement administrator on December 28, 2020. ECF No. 165 at 1–2. To ensure a timely

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disbursement of settlement funds to the class, Plaintiffs’ counsel proposed two alternatives. Id. at

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2–3.

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On January 31, 2021, the Court ordered Moving Solutions and Moving Solutions’

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principal, Rick Philpott, to show cause and to respond to Plaintiffs’ proposals. ECF No. 166. In

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response, Moving Solutions and Mr. Philpott filed a declaration under penalty of perjury on

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Case No. 17-CV-04015-LHK
ORDER MODIFYING ORDER GRANTING FINAL APPROVAL

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February 3, 2021. ECF No. 168-1. Mr. Philpott conceded that “th[e] [C]ourt has the authority to

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issue sanctions for Moving Solutions[]’s non-payment” and represented that “Moving Solutions

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fully intends to contribute the funds necessary” if and when funds are available. Id. ¶ 12.

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On February 5, 2021, the Court held a hearing with all parties and Mr. Philpott. The parties

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and Mr. Philpott were unable to reach agreement at the hearing. Thus, the Court referred the

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parties and Mr. Philpott to a settlement conference with United States Magistrate Judge Nathanael

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Cousins.

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On February 17, 2021, Plaintiffs’ counsel filed a status report, which stated that the parties
and Mr. Philpott did not settle, and which proposed the below solution to ensure a timely
disbursement of all $470,000 to the settlement class. ECF No. 172. The Court adopts Plaintiffs’

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United States District Court
Northern District of California

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counsel’s solution and MODIFIES the Order Granting Final Approval, ECF No. 163, as follows:

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Plaintiffs’ counsel’s fees will cover Moving Solutions’ $20,000 shortfall. Plaintiffs’

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counsel will receive only $97,500 from the funds deposited with the Class Administrator.

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However, Plaintiffs’ counsel retains the right to pursue collection of $20,000 in fees from Moving

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Solutions and/or its principals.

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None of the class members nor the class administrator will be affected by Moving

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Solutions’ failure to timely contribute funds. All other terms and conditions of the Order Granting

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Final Approval remain in effect. “Because this modification of the Order [Granting Final

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Approval] does not affect the rights and benefits of class members, no further notice is required.”

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Marsh v. Zaazoom Sols., LLC, No. 11-CV-05226-WHO, 2014 WL 4793034, at *4 (N.D. Cal.

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Sept. 25, 2014) (collecting cases).

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IT IS SO ORDERED.

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Dated: February 22, 2021
______________________________________
LUCY H. KOH
United States District Judge

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Case No. 17-CV-04015-LHK
ORDER MODIFYING ORDER GRANTING FINAL APPROVAL