Wilhoite v. Missouri Department of Social Services

Filing 213

ORDER entered by Judge Nanette Laughrey. The Joint Motion for Approval of Class Action Settlement and Payment of Attorneys' Fees, Reasonable Litigation Costs and Expenses, and Payment of Claims Administration Costs 211 is GRANTED in part and D ENIED in part and the Report and Recommendation of Magistrate Judge Knox 212 is APPROVED consistent with this Order, subject to objections by class members. In addition, pursuant to Federal Rule of Civil Procedure 23(e)(2), a hearing will be held r egarding the proposed Settlement Agreement on September 9, 2013, at 4:00 p.m., Courtroom 4A, in the United States District Court for the Western District of Missouri, 80 Lafayette Street, Jefferson City, Missouri 65101, during which the Court will hear any objections to the proposed Settlement Agreement.(Smith, Fran)

IN THE UNITED STATES DISTRICT COURT FOR THE
WESTERN DISTRICT OF MISSOURI
CENTRAL DIVISION

RAMONA DENISE WILHOITE,
individually and on behalf of all others
similarly situated,

)
)
)
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Plaintiffs,
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v.
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MISSOURI DEPARTMENT OF SOCIAL )
SERVICES, by and through its director,
)
Ronald J. Levy,
)
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Defendant.
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RENÉ DAMPIER, et al.,
)
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Intervenors.
)

No. 2:10-CV-03026-NKL

ORDER APPROVING SETTLEMENT
Before the Court are the parties’ Joint Motion for Approval of Class Action
Settlement and Payment of Attorney’s Fees, Reasonable Litigation Costs and Expenses,
and Payment of Claims Administration Costs, [Doc. # 211], and the Report and
Recommendation for Approval of Settlement of Magistrate Judge William A. Knox,
[Doc. # 212]. Having fully and carefully reviewed the proposed Settlement Agreement
as well as the recommendation of Judge Knox, who presided over the mediation in this
case, the Court finds that the Settlement Agreement represents a fair, reasonable, and
adequate resolution of a bona fide dispute. Furthermore, subject to any objections by
class members, the Court finds that the Settlement Agreement is in the best interest of the
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Class Members, in light of the merits of the case, the substantial benefits accruing to the
Class, Defendant’s financial condition, the significant discovery and investigation
conducted by Class Counsel prior to the proposed settlement, and the complexity, risk,
expense and possible length of time of continued litigation.
In connection with the Settlement Agreement, however, Defendant asks the Court
to review a revised lien letter and make a formal judicial finding that it complies with the
Federal Anti-Lien Statute. Such a finding would constitute an advisory opinion and is
therefore prohibited by Article III of the Constitution. See Pub. Water Supply Dist. No. 8
of Clay Cnty., Mo. v. City of Kearney, Mo., 401 F.3d 930, 932 (8th Cir. 2005).
Accordingly, the Court cannot grant Defendant’s request for approval of the revised lien
letter.
In addition, in paragraph 2(e) of the proposed Settlement Agreement, the parties
stipulate that any disputes arising under this paragraph shall be resolved by Magistrate
Judge Knox. Although the Court will make every effort to refer such disputes to Judge
Knox, the Court ultimately retains jurisdiction over the enforcement of the entire
Settlement Agreement and process.
For the foregoing reasons, it is hereby ORDERED that:
1.

The Joint Motion for Approval of Class Action Settlement and Payment of

Attorneys’ Fees, Reasonable Litigation Costs and Expenses, and Payment of Claims
Administration Costs, [Doc. # 211], is GRANTED in part and DENIED in part and the
Report and Recommendation of Magistrate Judge Knox, [Doc. # 212], is APPROVED
consistent with this Order, subject to objections by class members. The Settlement
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Agreement and incorporated exhibits (attached as Exhibit 1 to the Joint Motion for
Approval of Class Action Settlement [Doc. # 211-1]) are APPROVED, consistent with
this Order, subject to objections by class members.
2.

Accordingly, the parties’ joint request to decertify the two classes

previously certified in this matter and to certify a single, settlement class, [Doc. # 211], is
GRANTED. The two prior classes are hereby ORDERED decertified and a new class is
certified as follows:
Missouri citizens who have received Medicaid benefits and who had liens
asserted and monies taken by Defendants out of their third-party civil
settlements or judgments where Defendants identified the Medicaid
recipients’ claims between February 10, 2005 and July 1, 2010, except for:
(1) those cases where payments to the Missouri Department of Social
Services were payments received from the assets remaining in an
individual’s Special Needs Trust upon that individual’s death pursuant to
42 U.S.C. § 1396p(d)(4)(A); (2) cases where the payments were
adjudicated in a hearing under Mo. Rev. Stat. § 208.215.9 where the
amount of payment was judicially determined; and (3) cases where the
underlying claims were made against the federally-administered National
Vaccine Injury Compensation Program under 42 U.S.C. § 300aa.
Current Class Counsel, attorneys Craig R. Heidemann and Nathan A. Duncan, are
appointed as Class Counsel for the settlement class. Notice to Class Members will be
provided in the manner and form proposed in the Settlement Agreement. This notice will
provide each Class Member the opportunity to opt-out of both the Class and the proposed
Settlement Agreement.
3.

Moreover, the formula and method for distribution of settlement payments

set forth in the Settlement Agreement, including the notice and claim forms, are
APPROVED, subject to objection by class members, as a fair, equitable, and reasonable
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means of distributing the settlement payments to the Class Members. In addition, the
attorneys’ fees and costs, service awards, and payments for administration of the
settlement fund as set forth in the Settlement Agreement are APPROVED, subject to
objections by class members. Defendants are hereby ORDERED to pay the Class
Members and Class Counsel in accordance with and subject to the terms of the
Settlement Agreement.
4.

In addition, pursuant to Federal Rule of Civil Procedure 23(e)(2), a hearing

will be held regarding the proposed Settlement Agreement on September 9, 2013 at 4:00
p.m. in the United States District Court for the Western District of Missouri, 80 Lafayette
Street, Jefferson City, Missouri 65101, during which the Court will hear any objections to
the proposed Settlement Agreement.
SO ORDERED:

s/ Nanette K. Laughrey
NANETTE K. LAUGHREY
United States District Judge
Dated: July 11, 2013
Jefferson City, Missouri

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