Fouks v. Red Wing Shoe Company, Inc.
ORDER Preliminarily Approving Class Action Settlement 19 . (Written Opinion)Signed by Judge Joan N. Ericksen on June 14, 2013. (CBC)
UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
COURT FILE NO.: 12-cv-2160 JNE/FLN
Britt M. Fouks and Brian F. Hupperts, on behalf
of themselves and all others similarly situated,
Civil No. 12-cv-2160 (JNE/FLN)
Red Wing Hotel Corporation d/b/a St. James
Hotel, Veranda, Clara’s Gift Shop, Jimmy’s Pub,
Port Restaurant, and Shoe Box Café,
APPROVING CLASS ACTION
This matter came on for hearing before the undersigned United States Judge on June 7,
2013, upon motion pursuant to Rule 23 of the Federal Rules of Civil Procedure for preliminary
approval of the proposed class action settlement (“Proposed Settlement”) of the abovedescribed action set for in a Stipulation of Settlement dated May 30, 2013, (“Stipulation”)
signed by Counsel for Plaintiffs and the Defendant, and upon the subsequent filing of a
stipulation concerning methods of class notice, which was designed to address certain concerns
and suggestions raised by the Court. All capitalized terms in this Order shall have the meanings
given them in the Stipulation.
Plaintiffs Britt Fouks and Brian F. Hupperts (hereinafter “Plaintiffs”) were represented by
their counsel Thomas J. Lyons, Jr. of the Consumer Justice Center P.A. (hereinafter “Class
Counsel”). Defendant Red Wing Hotel Corporation d/b/a St. James Hotel, Veranda, Clara’s Gift
Shop, Jimmy’s Pub, Port Restaurant, and Shoe Box Café (hereinafter “St. James Hotel”), was
represented by its counsel Christopher R. Morris, Esq. of Bassford Remele P.A.
The Court having heard the arguments of counsel, having reviewed the Stipulation, its
exhibits, and other submissions of the parties, having considered all of the files, records, and
pleadings in the Action, and being otherwise fully advised:
IT IS HEREBY ORDERED, pursuant to Rule 23(e) of the Federal Rules of Civil
The representations, agreements, terms, and conditions of the parties’ Proposed
Settlement, as embodied in the Stipulation and the exhibits attached hereto, are preliminarily
approved pending a final hearing on the Proposed Settlement as provided herein.
For purposes of the Proposed Settlement only, the Court hereby certifies
plaintiffs’ class, pursuant to Fed. R. Civ. P. 23(b)(3), as follows:
“all persons residing in Minnesota and Wisconsin who, during the time period
from May 11, 2011, through August 31, 2012, inclusive, used a personal credit or
debit card at St. James Hotel and received a receipt that contained more than 5
digits of the credit or debit card.”
The foregoing is the “St. James Hotel Settlement Class,” and its members are “Class
In support of this St. James Hotel Settlement Class, the Court finds as follows:
The parties do not dispute, and the Court finds, that there are a sufficient number of Class
Members to satisfy the numerosity requirement of Federal Rule of Civil Procedure 23(a)(1).
There are questions of law and fact common to all Class Members. Such questions
include, but are not necessarily limited to, the following:
Whether there was a willful violation of FACTA with respect to any persons who
received a credit or debit card receipt from St. James Hotel that contained more
than 5 digits of the credit or debit card.
Plaintiffs’ claims are typical of the claims of the members of the St. James Hotel
Settlement Class. Plaintiffs are a member of the St. James Hotel Settlement Class and allege that
the same conduct of St. James Hotel applies to them as well as the other members of the
Settlement Class. Plaintiffs’ claims are not in conflict with or antagonistic to the claims of the
Settlement Class as a whole. The claims of Plaintiffs and other members of the Settlement Class
are based upon corresponding theories.
Plaintiffs, as Class Representatives, and Class Counsel can fairly and adequately
represent the interest of the St. James Hotel Settlement Class.
Questions of law and fact common to all members of the St. James Hotel Settlement
Class predominate over any questions affecting on individual members for settlement purposes.
A class for settlement purposes is superior to other available methods for the fair and efficient
adjudication of this controversy.
If for any reason the Stipulation ultimately does not become effective, St. James
Hotel’s conditional withdrawal of its objections to the certification of a settlement class shall be
null and void in its entirety; this Order certifying a class shall be vacated; the parties shall return
to their respective positions in this lawsuit as those positions existed immediately before June 7,
2013, and nothing stated in the Stipulation or in this Order shall be deemed an admission or
waiver of any kind by any of the parties or used as evidence against, or over the objection of, any
of the parties for any purpose in this action or in any other action or proceeding of any kind.
Having reviewed the proposed short, long and email forms of Notice of Proposed
Class Action Settlement attached together as Exhibit B to the Stipulation, the Court hereby
approves and directs that Defendant cause the long form of the Notice to be made available on a
website to be maintained by the appointed class action administrator, that the email form of
notice be sent by the appointed class action administrator to all email addresses maintained by
Defendant of likely and potential class members, and that the short form Notice be published in
certain newspapers in the manner set forth in the Settlement Agreement, with the addition of also
publishing notice in the St. Paul Pioneer Press, given that location and email information for
many class members cannot be determined through records of Defendant.
The Court finds and determines that email mail notice given to Class Members in
accordance with paragraph 4 herein, combined with the published notices, constitutes the best
notice practicable under the circumstances taking into account the nature of the claims and
unique facts presented, constitutes due and sufficient notice of the Proposed Settlement and the
matters set forth in said notice to all persons entitled to receive notice, and fully satisfies the
requirements of due process and of Fed. R. Civ. P. 23.
Any Class Member who desires to receive a settlement voucher, or who
desires to request exclusion from the St. James Hotel Settlement Class, must file a
written Claim or a written Statement of Exclusion in the form and manner required by
the Notice of Settlement by September 3, 2013. Claims may be submitted through the class
settlement website or may be sent to the St. James Hotel Class Settlement
Administrator as the address below.
Statements of Exclusion must be addressed to St.
James Hotel Class Settlement Administrator at the following address:
St. James Hotel Settlement
c/o BMC Group P.O. Box 2005
Chanhassen, MN 55317
A hearing will be held before the Honorable Judge Joan N. Ericksen, United
States District Court, 300 South Fourth Street, Minneapolis, Minnesota, Courtroom 12W at 9:30
a.m. on October 10, 2013 (“Final Settlement Hearing”), to determine: (a) whether the Proposed
Settlement set forth in the Stipulation should be approved as fair, reasonable, adequate, and in
the best interests of the St. James Hotel Settlement Class; (b) whether a final judgment should be
entered dismissing the claims of Plaintiffs and the Class Members with prejudice and on the
merits, as required by the Stipulation; (c) whether to approve, with or without modification, the
Class Representatives’ applications for an award of Class Representatives fees and of attorney’s
fees, costs, expenses, and disbursements of Class Counsel (“Fee Petition”) and (d) whether to
approve the cy pres award requested by the parties. The Final Settlement Hearing is subject to
continuation or adjournment by the Court without further notice.
Within 45 days of the entry of this Order, St. James Hotel shall cause a
declaration to be filed with the Court certifying that notice has been emailed to certain members
of the St. James Hotel Settlement Class, and published in certain newspapers, as agreed in the
Settlement Stipulation and as directed in this Order.
Any Class Member who wishes to object to the Proposed Settlement, or to appear
at the Final Settlement Hearing and show cause, if any, why the same should not be approved as
fair, reasonable, adequate, and in the best interests of the St. James Hotel Settlement Class, or
why a final judgment should not be entered thereon, must serve and file written objections in the
form and manner required by the Notice of Settlement.
Such written objections must be
addressed to the Court Administrator; must be filed with, and received by, the Court
Administrator no later than September 3, 2013; must contain the objector’s full name, telephone
number, and current address; must declare that the objector was provided a credit or debit card
receipt by St. James Hotel between May 11, 2011, and August 31, 2012, inclusive, that contained
more than 5 digits of the credit or debit card ; must provide a detailed statement of the objector’s
specific objections to any matter before the Court and the grounds therefore; and must include a
copy of either the credit card billing statement or a copy of the St. James Hotel receipt proving
that the objector made a credit or debit card purchase during the class time period and all
documents and other writings the objector wishes the Court to consider. Copies of all materials
also must be filed with the Clerk of Court and served upon the St. James Hotel Class Settlement
Administrator on or before September 3, 2013, at the following addresses:
Clerk of Court
United States Courthouse
316 North Robert Street
St. Paul, MN 55101
St. James Settlement Administrator- Objection
c/o BMC Group
P.O. Box 2010
Chanhassen, MN 55317-2010
No person shall be entitled to object to the Proposed Settlement, to the final
judgment to be entered in the Action, to any award of a Class Representative fee or of attorneys’
fees, costs, expenses, and disbursements to Class Counsel, or otherwise to be heard, except by
serving and filing a written notice of intention to appear and written objections in the form and
manner, and by the date required herein and by the Notice of Settlement. Any person who fails
to object in the manner and by the date required shall be deemed to have waived any objections,
and shall be forever barred form raising such objections in this or any other action or proceeding.
From the date of entry of this Order until the Court holds the Final Settlement
Hearing and determines the matters set forth in paragraph 7 of this Order, all Class Members
(except those who have served a timely Statement of Exclusion) shall be barred from asserting
against the St. James Hotel Released Parties any claims for which a Release and Covenant Not to
Sue will be given, consistent with paragraph 8 of the Stipulation, if the Court approves the
Upon the entry of final judgment after the Final Settlement Hearing, Plaintiff and
all Class Members (except those who have served a timely Statement of Exclusion) shall be
forever barred from asserting against St. James Hotel Released Parties any claims that are being
released in accordance with paragraph 8 of the Stipulation and Plaintiff and all Class Members
shall be conclusively deemed to have released any and all such claims.
Following the entry of final judgment after the Final Settlement Hearing, and
upon the date that the settlement becomes Final and Effective within the meaning of those terms
in the Stipulation, which will occur on the date upon which the judgment in this action becomes
not subject to further appeal or review, only persons who are Class Members as described in
paragraph 5(a) of the Stipulation, who have submitted timely claims pursuant to the Stipulation
and the Notice of Settlement, and who have not requested exclusion, shall be entitled to a
Settlement Voucher as described in paragraph 5 of the Stipulation.
The parties entered into the Stipulation solely for the purpose of compromising
and settling disputed claims. Defendant has at all times denied, and continues to deny, any
wrongful act or omission alleged by Plaintiffs in this Action and any liability of any sort to
Plaintiffs or any member of the St. James Hotel Settlement Class. Nothing contained in the
Stipulation, in any document relating to the Stipulation, or in this Order shall be construed,
deemed or offered as an admission by Plaintiffs or St. James Hotel, or by any member of the St.
James Hotel Settlement Class, for any purpose in any judicial or administrative action or
proceeding, whether in law or in equity.
The parties are ordered to take all reasonable steps necessary to complete this
settlement in compliance with the following timeline:
File Preliminary Approval Motion
Attend the Preliminary Approval Hearing
Accomplish publication of Legal Notice to the St. James Settlement
Class within one month of the Preliminary Approval Order
File declaration certifying that notice has been directly emailed to the St.
James Settlement Class within 45 days of Preliminary Approval Order
Deadline for Objections or Statements of Exclusion and submission of
claims for voucher
Third Party Administrator to report Objections or Statements of
File Final Approval Motion, including award for class representative and
Attend the Final Approval Hearing
Pay Cy Pres, Class Representatives Awards and Plaintiffs’ Counsel Fees
and Costs within ten business days after the Effective Date
Distribute Settlement Vouchers within one month after the Effective Date
of the Final Approval Order
(anticipated Honor Class Members’ Settlement Vouchers in effect for the class period
Jan. 1-October 1)
as defined on the Settlement Voucher
The Court reserves the right to adjourn or continue the Final Settlement Hearing,
and any adjournment or continuance may be without further notice of any kind other than oral
announcement at the Final Settlement Hearing or at any hearing later.
BY THE COURT:
Dated: June 14, 2013
s/Joan N. Ericksen____________________
Judge Joan N. Ericksen
United States District Court
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?