Schaefer v. Healthport Technologies LLC

Filing 86

ORDER DISMISSING CASE, granting 77 MOTION for Settlement Final Approval of Class Action Settlement, 79 MOTION for Attorney Fees and Costs and Request for Incentive Fees for Class Representatives filed by Stefanie Gentles, David Bair, Richard Messerly, Gregg Brown. In light of the approved settlement, this matter is DISMISSED with prejudice. Signed by Judge David R. Herndon on 9/7/2017.(lmp)

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF ILLINOIS
STEFANIE GENTLES,
RICHARD MESSERLY,
GREGG BROWN, and
DAVID BAIR, individually and on
behalf of all others similarly situated,
Plaintiffs,

Case No. 3:15-cv-00069-DRH-DGW

v.
HEALTHPORT TECHNOLOGIES,
LLC, and CIOX HEALTH, LLC,
Defendants.
FINAL APPROVAL OF CLASS ACTION SETTLEMENT
AND FINAL JUDGMENT AND ORDER OF DISMISSAL WITH PREJUDICE
Pending before the Court are the Plaintiffs’ Motion for Approval of Class
Action Settlement (Doc. 77) and Plaintiffs’ Motion for an Award of Attorneys’ Fees
and

Costs

and Request for Incentive Awards (Doc. 79). Having reviewed the papers filed in
support of the motions, heard argument of counsel, and good cause appearing
therein, the motions are GRANTED and it is hereby ORDERED, ADJUDGED,
and DECREED that:
1.

Any terms and phrases in this Order shall have the same meaning as

in the Class Action Settlement Agreement (Doc. 78-1, the “Settlement Agreement”).
2.

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

over all Parties to the Action, including all Settlement Class Members.
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3.

The Settlement Class is bound by this Order and Judgment

4.

For purposes of the Settlement and this Final Judgment and Order

of Dismissal with Prejudice, the Settlement Class means all persons in the United
States who paid to HealthPort Technologies, LLC and/or CIOX Health, LLC, at any
time on or after December 6, 2010, one of the following fees as a result of
obtaining electronic medical records in electronic form from a healthcare facility
or physician practice located in the State of Illinois: (a) the full Paper Copy Price
rather than the discounted Electronic Record Price; and/or (b) an Electronic
Delivery Fee.
5.

The court finds that the Settlement Class meets the requirements of

Federal Rules of Civil Procedure 23(a) and (b)(2).
6.

The prerequisites for certification of the Settlement Class under

Rules 23(a) and (b)(2) of the Federal Rules of Civil Procedure have been satisfied
in that: (a) the number members of the Settlement Class is so numerous that
joinder of all members thereof is impracticable; (b) there are questions of law and
fact common to the Settlement Class; (c) the claims of the class representatives
are typical of the claims of the Settlement Class they seek to represent; (d) the
class representatives have and will fairly and adequately represent the interests of
the Settlement Class; and (e) the Defendants have acted or refused to act on
grounds generally applicable to the class, thereby making appropriate final
declaratory relief with respect to the class as a whole.
7.

The Court affirms certification of the Settlement Class.

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8.

Due to the broad, automatic, and uniform benefit of the injunctive

relief in this action, it will inure to benefit all members of the Settlement Class in
equal measure. Accordingly, no notice is required or necessary as: absent
Settlement Class Members retain their rights to sue for monetary relief; the
Settlement extends near complete injunctive relief to the Class; there is no
evidence of collusion amongst the parties; the Settlement negotiations were
conducted at arms’ length; and the cost of notice itself would actually jeopardize
the Settlement Agreement. The Court, in its discretion, declines to order notice in
this action as it is not required in order to satisfy the requirements of federal due
process of law.
9.

The Settlement, as set forth in the Settlement Agreement, is in all

respects fair, reasonable, adequate and in the best interests of the Settlement
Class, and it is approved. The Parties to the Settlement Agreement shall effectuate
the Settlement Agreement according to its terms. The Settlement Agreement and
every term and provision thereof shall be deemed incorporated herein as if
explicitly set forth and shall have the full force of an Order of this Court.
10.

This Order and Judgment, and the Settlement Agreement, shall not

be construed as, or used as an admission or concession on the part of Defendants
with respect to any claim of any fault or wrongdoing or liability or damage
whatsoever.
11.

The Court approves the payment to Class Counsel of $290,000.00 in

attorneys’ fees, inclusive of any and all costs, pursuant to the terms set forth in

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the Settlement Agreement.
12.

The award of attorneys’ fees to Class Counsel shall be allocated

among Plaintiffs’ counsel in a fashion that, in the opinion of Class Counsel, fairly
compensates counsel for their respective contributions in the prosecution of the
Action.

The

Court

has

considered

this

award

of

attorneys’

fees

and

reimbursement of expenses separately from the merits of the settlement and the
Court has considered and finds as follows:
a.

The Settlement has provided significant relief to the Settlement

Class and provided such injunctive relief in a timely manner.
b.

Plaintiffs’ counsel have conducted the litigation and achieved

the Settlement with skill, perseverance, and diligent advocacy on behalf of
Plaintiffs and the Settlement Class as a whole.
c.

The Action involves complex factual and legal issues and, in

the absence of Settlement, would involve further lengthy proceedings and
uncertain resolution of such issues.
d.

Had this Settlement not been achieved, there would remain a

significant risk that the Settlement Class may have recovered less or
nothing from Defendants, and that any recovery would have been
significantly delayed.
e.

The amount of attorneys’ fees and costs awarded to counsel is

fair and reasonable, given the number of attorney hours expended to
achieve the Settlement on behalf of Plaintiffs and the Settlement Class as a

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whole, and the amount awarded is consistent with awards for similar work
in similar cases.
13.

The Court further approves the payment of $5,000 each to the four

Class Representatives Stefanie Gentles, Richard Messerly, Gregg Brown, and
David Bair.
14.

All payments described herein shall be made in the manner and at

the times set forth in the Settlement Agreement.
15.

The above-captioned Action is hereby DISMISSED with prejudice.

Except as otherwise provided in this Order, the Parties shall bear their own costs
and attorneys’ fees. Without affecting the finality of the Judgment hereby entered,
the Court reserves jurisdiction over the implementation, interpretation, and
enforcement of the terms of the Settlement Agreement, and all parties hereto
submit to the jurisdiction of the Court for purposes of implementing, interpreting,
and enforcing the Settlement embodied in this Settlement Agreement.
16.

By reason of the Settlement, and approval hereof, there is no just

reason for delay and this Final Order and Judgment shall be deemed a final
judgment pursuant to Rule 54(b) of the Federal Rules of Civil Procedure.

Digitally signed by
Judge David R.
Herndon
Date: 2017.09.07
11:19:12 -05'00'

IT IS SO ORDERED.

United States District Court Judge

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