Kardonick v. JP Morgan Chase & Co. et al

Filing 469

AFFIDAVIT in Support re 468 MOTION for an Order Authorizing Distribution of Settlement Funds filed by David Kardonick. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C)(Ku, Brian)

July 20, 2012

Richard Golomb, Esquire
Golomb & Honik, P.C.
1515 Market Street
Suite 1100
Philadelphia, PA 19102

Re:

Randall K. Pulliam, Esquire
Carney Williams Bates
Bozeman & Pulliam PLLC
11311 Arcade Drive, Suite 200
Little Rock, AR 72212

Kardonick, et. al. v. JP Morgan Chase &Co. et al. Litigation

For services rendered and expenses incurred for the period December 1, 2011 through June 30,
2012, as well as anticipated services and expenses through distribution and post-distribution, as follows:

The following represent items that are billed on a per item basis:
1.

Maintain and monitor on a monthly basis the website www.KardonickSettlement.com;

2.

Maintain and monitor the toll free telephone system with automated responses (IVR). Also
have live operators available to assist class members;

3.

Pick-up of mail at P.O. Box 280 on an as-needed basis. Open and sort the mail received,
batch the claims, returns and requests separately, as applicable;

4.

Respond to telephone, written and e-mail inquiries concerning status, request for forms
and general information;

5.

Process returned/undeliverable notices. Scan all documents received. Re-mail those with
updated addresses; send all others to TransUnion to search for an updated address. Remail all returned by TransUnion with updated address;

6.

Update database for all change of address notifications received;

7.

Receive electronic claims; receive and data enter paper claims into the database;

8.

Send deficiency/rejection letter to applicable claimants. Record and process responses;

9.

Calculate distribution and produce Charged Off List and final declaration.

The following represent items that are billed at the hourly rates listed in our proposal:
1.

Prepare status reports and activity updates for Counsel on an as needed basis;

Richard Golumb, Esquire
Randall K. Pulliam, Esquire

-2-

July 20, 2012

2.

Review Orders and other Court documents, discuss with Counsel;

3.

Meetings and conference calls with Counsel and staff on various issues noted in the
Notice mailing process, claims submission and regarding status issues;

4.

Monitor and maintain IT compliance and security review;

5.

Revisions to website based on issues or requests.

The following items are anticipated services to be rendered and estimated costs to be incurred
through one distribution and post-distribution:
1. Conferences with Counsel.
2. Continued processing of mail received and updating the database file until distribution.
3. Set up a distribution checking account with a bank to receive the distributive funds for
eligible claimants, including an investment option for daily investment of the outstanding
funds until the account is closed or reduced to a minimum balance, with any earnings
accruing on or after the date of the claimants’ distribution to Heffler Claims Administration to
offset the bank charges relating to the distribution account, positive pay processing, account
reconcilement, stop payments, reissues, monthly maintenance, etc. and other distribution and
post-distribution assessed fees and costs.
4. Update Settlement Fund Analysis for distribution calculations.
5. Calculate claimants’ distribution each claimant’s pro-rata share of the Net Settlement Fund
based on the distribution ratio.
6. Print and mail checks for claimants who are to receive a distribution from the Net Settlement
Fund and prepare the check register.
8. Upon request of Counsel, prepare a computer printout showing the amount of cash distributed
to each approved claimant.
9. Answer all correspondence, telephone calls and process changes of addresses received
relating to the distribution for a period of six months following distribution.
10. Prepare checking account reconciliations for a period of up to 12 months following
distribution.
11. Attempt to locate current addresses of claimants whose checks are returned as undeliverable
by reviewing claim forms filed, telephoning claimants, and/or by sending to Lexis/Nexis
Accurint Service or a credit bureau.
12. Prepare 2012 and 2013 tax returns and estimated taxes as necessary.

Richard Golumb, Esquire
Randall K. Pulliam, Esquire

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July 20, 2012

INVOICE
I.

COSTS:
A.

PROOF OF CLAIM FORMS:
Electronic Claims
317 claims @ $0.40

$126.80

Paper Claims
31 claims @ $0.95

29.45

Total invoiced for claims activity this period
B.

C.

D.

E.

$

156.25

IVR / LIVE OPERATOR COSTS:
IVR Call minutes
30,536 minutes @ $0.23/min.
IVR Changes
at cost
.
Internal Operators
3,045 minutes @ $0.50/min.

7,023.28
400.00
1,522.50

WEBSITE MAINTENANCE:
Monthly Maintenance (7 months @ $750.00/month)

5,250.00

CORRESPONDENCE:
Deficiency Letters Mailed
Responses

4,002.50
3,614.00

8,005 @ $0.50
7,228 @ $0.50

PROCESS RETURNED POSTCARDS
8,064 returns @ $0.05
10,200 printed notices to re-mail @ $0.039

403.20
397.80

F.

SCANNING OF RETURNED NOTICES & PAPER CLAIM FORMS
SUBMITTED (reduced rate)
Scans
8,064 @ $0.05
403.20

G.

OTHER OUT-OF-POCKET COSTS:
Telephone
Locator Services (NCOA & TransUnion)
Postage
Post Office Box Renewal
Sales Tax on Returns and Remails
Photocopies (787 @ $0.10)

$1,270.79
1,182.36
3,385.11
610.00
29.69
78.70
6,556.65

TOTAL COSTS

$ 29,729.38

Richard Golumb, Esquire
Randall K. Pulliam, Esquire

II.

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FEES:
Partners
16.25 Hours @ $210.00 - $265.00
Managers / Computer
Programmers
19.00 Hours @ $150.00 - $175.00
Senior Accountants / Data
Processing Supervisors 45.50 Hours @ $110.00 - $150.00
Junior Accountants
13.75 Hours @ $70.00 - $100.00
Estimate of Fees to complete Tax Analysis and Preparation
of Tax Returns for 2012 and 2013 (2 years @ $3,500):
TOTAL FEES

III.

July 20, 2012

$4,062.50
2,975.00
5,005.00
1,055.00

7,000.00
20,097.50

ANTICIPATED OUT-OF-POCKET COSTS:
Standard Checks:
$49,760.00
Postcard Checks:
29,370.00
Postage for Distribution Checks
:
82,400.00
Process Undeliverable Checks:
1,100.00
Re-issue Checks (est. 2.25% of each type):
1,780.00
Re-issue Postage:
1,850.00
Post Office Box Renewal:
610.00
Toll-Free telephone service (@$350/mo., 6 months):2,100.00
Changes from full IVR service to recorded message
with option to transfer to live operator
400.00
Website Maintenance and responses to inquiries:
5,100.00
Photocopies, Supplies, etc.
50.00
174,520.00

TOTAL INVOICE:

$224,346.88