Canada et al v. Meracord, LLC et al
Filing
287
FINAL JUDGMENT AND ORDER GRANTING PLAINTIFFS' 279 MOTION FOR DEFAULT FINAL JUDGMENT, by Judge Benjamin H. Settle. Judgment against Defendant on behalf of the Judgment Class is granted on all causes of action asserted in the Complaint, except for Count IX. The Court finds that the judgment class is entitled to damages of $484,757,939.30. Pursuant to Section 1964(c) of RICO, this amount will be trebled for a total judgment of $1,454,273,818.90. (GMR)
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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT TACOMA
AMRISH RAJAGOPALAN, MARIE
JOHNSON-PEREDO, ROBERT HEWSON,
DONTE CHEEKS, DEBORAH HORTON,
RICHARD PIERCE, ERMA SUE CLYATT,
ROBERT JOYCE, AMY JOYCE, ARTHUR
FULLER, DAWN MEADE, WAHAB
EKUNSUMI, KAREN HEA, and ALEX
CASIANO on behalf of themselves and all
others similarly situated,
Plaintiffs,
v.
MERACORD, LLC,
Defendant.
and
FIDELITY AND DEPOSIT COMPANY OF
MARYLAND and PLATTE RIVER
INSURANCE COMPANY,
Proposed DefendantIntervenors.
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FINAL JUDGMENT AND ORDER GRANTING
PLAINTIFFS’ MOTION FOR DEFAULT FINAL
JUDGMENT
No. 12-cv-05657-BHS
FINAL JUDGMENT AND ORDER
GRANTING PLAINTIFFS’ MOTION
FOR DEFAULT FINAL JUDGMENT
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This matter comes before the Court on Plaintiffs’ Motion for Default Final Judgment
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(“Motion”). Upon consideration of the foregoing Motion, the papers submitted in support and
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opposition thereto, and good cause appearing, Plaintiffs’ Motion is GRANTED, and IT IS
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HEREBY ORDERED that:
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In accordance with Rule 23(a), 23(b)(1)(B) and 23(g) of the Federal Rules of Civil
Procedure a class (“Judgment Class” or “Class”) is hereby certified as follows:
All persons in a Surety State who established an account with
Meracord LLC (formerly NoteWorld) or any subsidiary thereof
from which Meracord processed any payments related to debt
settlement, including MARS, within the Bond Period of their state
of residence.
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Surety States and respective Bond Periods are defined as set forth in Appendix A.
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Excluded from the Class are Defendant, its officers and directors, members of their
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immediate families and their legal representatives, heirs, successors, or assigns, and any entity in
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which Defendant has or had a controlling interest. Also excluded are (1) Meracord customers in
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Washington state whose debt settlement accounts were opened between July 26, 2007, and
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October 18, 2011 (those within the Class Period covered by the settlement in Wheeler v.
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NoteWorld, 2:10-cv-00202-LRS (E.D. Wash.)); (2) Meracord customers in Georgia whose debt
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settlement accounts were opened between July 26, 2007, and July 28, 2011 (those within the
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Class Period covered by the settlement in Morefield v. NoteWorld, Case No. 1:10-CV-00117
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(S.D. Ga.)); and (3) Meracord customers who signed agreements with Debt Shield as their Front
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DRC, and whose accounts were opened between July 26, 2007, and September 25,
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2013 (those within the Class Period covered by the settlement in Haile v. Debt Shield, Case
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No. 2:08-CV-04295 (W.D. Mo.)).
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With respect to the Judgment Class, the Court finds that class-wide application of
Washington law is appropriate.
With respect to the Judgment Class, the requirements of Rules 23(a) have been met in that:
(1) the number of Judgment Class Members, over 130,000, is so numerous that joinder is
impracticable and members of the Class are ascertainable through Meracord’s customer
FINAL JUDGMENT AND ORDER GRANTING
PLAINTIFFS’ MOTION FOR DEFAULT FINAL
JUDGMENT - 1
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database; (2) there are questions of law and fact common to the class; (3) the claims of the
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twelve Class representatives are typical of the claims of the Class; and (4) the twelve Class
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representatives will fairly and adequately protect the interests of the Class.
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Certification is appropriate under Rule 23(b)(1) because there are limited and insufficient
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funds available to compensate the Class. All of the available funds will be devoted to
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compensating Class members, less allowances for costs and attorneys’ fees. Certification is
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necessary to ensure that all similarly situated Class members are treated equitably.
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Pursuant to Rule 23(c)(2)(A), in light of the Defendant’s limited resources, the Court
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determines that notice at this juncture would diminish funds that might later be available to the
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Class. In the event of a recovery on behalf of the Class, the Court will direct appropriate notice.
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Rule 23(g) is satisfied because Plaintiffs’ counsel will fairly and adequately represent the
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interests of the Judgment Class. The Court therefore appoints Hagens Berman Sobol Shapiro
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LLP and The Paynter Law Firm PLLC as class counsel.
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Judgment against Defendant on behalf of the Judgment Class is granted on all causes of
action asserted in the Complaint, except for Count IX.
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Based on the review of the April 9, 2015 Declaration of Lorraine M. Tafoya, the Court
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finds that the judgment class is entitled to damages of $484,757,939.30. Pursuant to Section
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1964(c) of RICO, this amount will be trebled for a total judgment of $1,454,273,818.90. The
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Court orders that this judgment amount be allocated as described in Appendix A attached hereto.
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There is no reason for delay in the entry of judgment against Defendant and final judgment
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is appropriately entered pursuant to Federal Rule of Civil Procedure 54(b).
The Court reserves jurisdiction over this action including all proceedings on behalf of the
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Class concerning the collection or enforcement of this judgment. In the event that the Class
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representatives, on behalf of the Class, seek to satisfy this judgment from Meracord’s surety
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bonds, Class representatives, on behalf of the Class, shall file a complaint against Meracord’s
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sureties within thirty (30) days of this Order.
FINAL JUDGMENT AND ORDER GRANTING
PLAINTIFFS’ MOTION FOR DEFAULT FINAL
JUDGMENT - 2
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IT IS SO ORDERED.
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Dated: May 14, 2015
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A
BENJAMIN H. SETTLE
United States District Judge
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Presented By:
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HAGENS BERMAN SOBOL SHAPIRO LLP
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By: /s/ Steve W. Berman
By: /s/ Thomas E. Loeser
Steve W. Berman, WSBA# 12536
Thomas E. Loeser, WSBA# 38701
1918 Eighth Avenue, Suite 3300
Seattle, Washington 98101
Tel.: (206) 623-7292
Fax: (206) 623-0594
steve@hbsslaw.com
TomL@hbsslaw.com
THE PAYNTER LAW FIRM PLLC
Stuart M Paynter (pro hac vice)
1200 G Street N.W., Suite 800
Washington, DC 20005
stuart@smplegal.com
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Celeste H.G. Boyd (pro hac vice)
1340 Environ Way
Chapel Hill, NC 27517
919-636-7563
cboyd@paynterlawfirm.com
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Attorneys for Plaintiffs
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FINAL JUDGMENT AND ORDER GRANTING
PLAINTIFFS’ MOTION FOR DEFAULT FINAL
JUDGMENT - 3
APPENDIX A
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Surety States
Bond Period
Damages
Trebled Damages
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ALABAMA
July 24, 2009–Present
$8,401,551.06
$25,204,653.18
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ALASKA
August 5, 2009–Present
$1,898,430.86
$5,695,292.58
ARIZONA
November 29, 2008–Present
$16,968,239.23
$50,904,717.69
ARKANSAS
July 31, 2010–Present
$3,741,038.29
$11,223,114.87
CALIFORNIA
April 15, 2012–Present
$43,310,443.64
$129,931,330.92
COLORADO
August 6, 2008–Present
$8,363,590.85
$25,090,772.55
CONNECTICUT
November 1, 2007–Present
$7,496,231.23
$22,488,693.69
DELAWARE
September 21, 2009–Present
$1,706,170.25
$5,118,510.75
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WASHINGTON, D.C.
October 19, 2009–Present
$644,912.56
$1,934,737.68
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FLORIDA
February 1, 2009–Present
$46,680,334.98
$140,041,004.94
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GEORGIA
January 12, 2009–Present
$188,360.75
$565,082.25
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HAWAII
July 9, 2009–Present
$2,885,833.25
$8,657,499.75
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IDAHO
August 3, 2009–Present
$3,652,248.65
$10,956,745.95
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ILLINOIS
October 27, 2010–Present
$16,376,224.92
$49,128,674.76
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INDIANA
February 5, 2009–Present
$13,372,177.89
$40,116,533.67
IOWA
March 1, 2009–Present
$6,248,808.75
$18,746,426.25
KANSAS
July 15, 2009–Present
$2,151,401.30
$6,454,203.90
KENTUCKY
October 19, 2009–Present
$4,086,811.33
$12,260,433.99
LOUISIANA
March 20, 2009–Present
$8,293,679.83
$24,881,039.49
MAINE
July 24, 2009–Present
$2,369,514.51
$7,108,543.53
MARYLAND
January 1, 2009–Present
$15,776,570.67
$47,329,712.01
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MICHIGAN
December 31, 2010–Present
$14,222,259.40
$42,666,778.20
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MINNESOTA
February 13, 2009–Present
$11,326,539.60
$33,979,618.80
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MISSISSIPPI
May 5, 2009–Present
$2,729,093.96
$8,187,281.88
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MISSOURI
October 10, 2010–Present
$9,430,734.00
$28,292,202.00
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NEBRASKA
May 29, 2009–Present
$3,508,251.64
$10,524,754.92
NEVADA
May 5, 2009–Present
$8,622,199.63
$25,866,598.89
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FINAL JUDGMENT AND ORDER GRANTING
PLAINTIFFS’ MOTION FOR DEFAULT FINAL
JUDGMENT - 4
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NEW HAMPSHIRE
November 30, 2008–Present
$1,602,750.07
$4,808,250.21
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NEW JERSEY
November 30, 2008–Present
$19,610,666.43
$58,831,999.29
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NEW YORK
July 2, 2009–Present
$43,671,792.60
$131,015,377.80
NORTH CAROLINA
March 5, 2009–Present
$9,732,260.47
$29,196,781.41
NORTH DAKOTA
September 23, 2009–Present
$817,831.82
$2,453,495.46
OHIO
April 1, 2009–Present
$26,807,867.56
$80,423,602.68
OKLAHOMA
March 23, 2009–Present
$5,752,789.17
$17,258,367.51
PENNSYLVANIA
June 27, 2008–Present
$37,269,259.79
$111,807,779.37
RHODE ISLAND
June 23, 2009–Present
$2,575,094.09
$7,725,282.27
SOUTH DAKOTA
August 5, 2009–Present
$1,004,159.76
$3,012,479.28
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TENNESSEE
September 22, 2010–Present
$6,507,283.81
$19,521,851.43
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TEXAS
October 3, 2007–Present
$53,460,876.24
$160,382,628.72
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VERMONT
September 21, 2009–Present
$682,327.37
$2,046,982.11
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VIRGINIA
August 27, 2009–Present
$141,593.26
$424,779.78
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WASHINGTON
September 29, 2008–Present
$49,706.58
$149,119.74
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WEST VIRGINIA
March 20, 2009–Present
$2,060,221.61
$6,180,664.83
WISCONSIN
June 3, 2009–Present
$7,571,680.50
$22,715,041.50
WYOMING
October 22, 2009–Present
$988,125.14
$2,964,375.42
$484,757,939.30
$1,454,273,817.90
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TOTAL FEES
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FINAL JUDGMENT AND ORDER GRANTING
PLAINTIFFS’ MOTION FOR DEFAULT FINAL
JUDGMENT - 5
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