Rittle v. Premium Receivables, LLC

Filing 53

ORDER ADOPTING REPORT AND RECOMMENDATIONS 52 of M.J. Arbuckle; Class action certified 46 . See order for specifics.Signed by Honorable Sylvia H. Rambo on 11/27/18. (ma)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF PENNSYLVANIA
DENNIS RITTLE on behalf of himself
and all others similarly situated,
Plaintiff
-vsPREMIUM RECEIVABLES, LLC
d/b/a Premium Asset Services,
Defendant

) CIVIL ACTION NO.: 1:15-CV-0166
)
) (RAMBO, D.J.)
)
) (ARBUCKLE, M.J.)
)
)
)
)
ORDER

The Court has reviewed the Report and Recommendation of Magistrate Judge
Arbuckle filed with this court on October 15, 2018. No objections have been filed with
the Court. The Court adopts the findings and recommendations of the Magistrate Judge
and enters the following Order as recommended by Judge Arbuckle.
Upon consideration of the parties’ request for final approval of the proposed
Class Settlement Agreement (“Agreement”) between Lead Plaintiff, Dennis Rittle
(“Plaintiff”), individually, and as representative of the class of persons defined below
(“Settlement Class”), and Defendant, Premium Receivables, LLC d/b/a Premium Asset
Services (“Premium”), THE COURT ORDERS AND FINDS AS FOLLOWS:
1.

This Court has jurisdiction over the subject matter of this lawsuit, Plaintiff,
settlement class members, and Defendant Premium.

2.

The following Settlement Class is certified pursuant to Fed. R. Civ. P.
23(b)(3):
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All consumers with addresses in the Commonwealth of Pennsylvania
to whom Premium mailed an initial written communication, which
failed to inform consumers they must (i) dispute the debt in writing to
obtain verification, and/or (ii) make a request in writing to obtain
information regarding the name and address of the original creditor,
during the period beginning January 23, 2014, and ending February 13,
2015.
3.

Based on the Parties’ stipulations: (A) the Settlement Class as defined is
sufficiently numerous such that joinder is impracticable; (B) common
questions of law and fact predominate over any questions affecting only
individual Settlement Class members, and included whether or not
Premium violated the Fair Debt

Collection Practices Act, 15

U.S.C.§ 1692, et seq. by mailing consumers initial written collection
communications, which failed to inform consumers they must (i) dispute
the debt in writing to obtain verification, and/or (ii) make a request in
writing to obtain information regarding the name and address of the
original creditor; (C) the Plaintiff’s claim is typical of the Class Members’
claims; (D) Plaintiff is an appropriate and adequate representative for the
Class and his attorneys, Andrew T. Thomasson, Philip D. Stern, and Craig
Thor Kimmel, were previously appointed as Class Counsel; and (E) a class
action is the superior method for the fair and efficient adjudication of the
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claims of the Settlement Class members.
4.

The Court approved a form of notice for mailing to the Settlement Class.
The Court is informed that actual notice was sent by first class mail to 80
Class Members by Heffler Claims Group, the third-party settlement
administrator (“Settlement Administrator”). A total of four (4) envelopes
were returned by the United States Postal Service as undeliverable. None
of the Class Members requested exclusion from, or objected to, the
Settlement.

5.

On November 28, 2016, the Court held a fairness hearing to which Class
Members, including any with objections, were invited; however, no Class
Members appeared at the hearing.

6.

The Court finds the provisions for notice to the Settlement Class satisfy
the requirements of due process pursuant to the Federal Rules of Civil
Procedure, including Rule 23, the United States Constitution, and other
applicable laws.

7.

The Court finds that the Settlement is fair, reasonable, and adequate and
hereby approves the Agreement submitted by the Parties, including the
Release and payments by Premium. In accordance with the terms of the
Agreement, Premium shall make the following payments:

8.

Premium shall remit the class settlement fund of $1,000.00 (“Class
Recovery”), to the Settlement Administrator who will distribute it pro
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rata among those 76 Class Members who received the notice and did not
exclude themselves from the Settlement (“Claimants”). Claimants will
receive a pro rata share of the Class Recovery by check. Checks issued
to Claimants will be void sixty (60) days from the date of issuance. Any
checks that have not been cashed by the void date, along with any
unclaimed funds remaining in the Class Recovery, will be donated as a
cy pres award to: MidPenn Legal Services, 213-A North Front Street,
Harrisburg, PA 17101.
9.

Premium shall pay Class Representative Plaintiff, Dennis Rittle, $1,000.00.

10.

Premium shall pay Class Counsel $18,000.00 for their attorneys’ fees
and costs, including costs to the Settlement Administrator incurred in the
action. Class Counsel shall not request additional fees or costs from
Premium or the Class Members.

11.

The Parties grant the following releases:
(a)

Plaintiff, including each and every one of his respective agents,
representatives, attorneys, heirs, assigns, or any other person
acting on his behalf or for his benefit, and any person claiming
through him (collectively “Releasors”), releases and discharges
Premium, as well as its parent corporations, predecessors and
successors

in

interest and

subsidiaries, insurers,
members,

shareholders,

present and

former affiliates,

officers, directors, agents, employees,
general

partners,

limited partners,

beneficiaries, representatives, attorneys, or assigns (in their
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respective capacities as officers, directors, agents, employees,
members,

shareholders,

general

partners,

limited

partners,

beneficiaries, representatives, attorneys, or assigns for Premium)
(collectively, “Released Parties”), from all causes of action, suits,
claims, or demands, in law or in equity, known or unknown at this
time which Releasors now have or ever had against the Released
Parties, or any of them, under any legal theory, whether or not
alleged, related to or arising from matters that occurred from the
beginning of time through the Effective Date.
(b)

Each Class Member who did not exclude themselves from the
Settlement hereby releases and discharges the Released Parties
from all causes of action, suits, claims, or demands, in law or in
equity, known or unknown at this time which Releasors now
have or ever had, including claims for the payment of attorney’s
fees and costs arising out of or related to Premium’s collection
letter that is attached as Exhibit A to Plaintiff’s Complaint in the
Litigation (Doc. 1).

(c)

Plaintiff and each Class Member DO NOT release any defense
they may have with respect to the underlying debts which
Premium was attempting to collect, including (i) whether any
debt is in fact owed, (ii) the crediting of payments on any debt, or
(iii) the proper reporting of any debts to credit bureaus.

(d)

Premium DOES NOT release its claims, if any, against Plaintiff
or any Class Member for payment of their alleged debts. The
underlying debts Premium sought to collect are unaffected by the
Settlement and, therefore, Premium is not
continuing to attempt to collect those debts.
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prevented from

12.

The Court finds the Agreement is fair and made in good faith.

13.

The terms of the Agreement are incorporated into this Order. This
Order shall operate as a final judgment and dismissal with prejudice of
the claims in this action.

14.

The Court finds, in accordance with Fed. R. Civ. P. 54(b), that there is
no just reason for delay of enforcement of, or appeal from, this Order.

15.

The Court retains exclusive jurisdiction to enforce the terms and
provisions of the Agreement and this order.

16.

The Parties are hereby ordered to comply with the terms of the
Agreement and this Order.

Date: November 27, 2018

SO ORDERED.

s/Sylvia H. Rambo
____________________________
SYLVIA H. RAMBO
United States District Judge

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