IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
TEOFILO LEON, SR. Plaintiff,
v.
WASHINGTON MUTUAL BANK, F.A.
NOTICE OF PENDENCY OF CLASS ACTION AND SETTLEMENT
PLEASE READ THIS NOTICE CAREFULLY.
THIS IS NOT A NOTICE OF A LAWSUIT AGAINST YOU.
YOU MAY BENEFIT FROM READING THIS NOTICE.
TO: All natural persons residing anywhere in the United States who: (i) obtained a residential mortgage loan made, originated by or from Defendant secured by real estate containing 1 or 2 dwelling units, (ii) their transaction was documented as one subject to the Truth in Lending Act ("TILA"), (iii) their note and mortgage were originated by or assigned to Washington Mutual Bank, F.A., (iv) their Truth in Lending Statement discloses the security interest taken by the 1-4 Family Rider in substantially the same manner as plaintiff’s Truth in Lending statement and (v) their mortgage is dated on or after March 8, 2000.
I. WHY ARE YOU RECEIVING THIS NOTICE?
This notice informs you, pursuant to Rule 23(c)(2) of the Federal Rules of Civil Procedure, that there is a class action lawsuit and settlement pending in the United States District Court for the Northern District of Illinois Eastern Division. The lawsuit was not filed against you. II. WHAT IS THIS LAWSUIT ABOUT?
On March 8, 2001, Plaintiff Teofilo, Sr. filed an action against Washington Mutual Bank, F.A. (Washington Mutual). The complaint alleged that defendant violated the Truth in Lending Act, 15 U.S.C. §1601 et seq. ("TILA") and implementing Federal Reserve Board Regulation Z, 12 C.F.R. part 226 by failing to disclose the existence of a security interest in personal property.
Washington Mutual denies any wrongdoing or liability to plaintiff or the class.
Leon, Sr. and Washington Mutual have negotiated a settlement agreement. You appear to be a member of the class. III. WHO IS IN THE CLASS?
To be a member of the class, you must meet the following class description:
All natural persons residing anywhere in the United States who satisfy the following criteria: 1) They obtained a residential mortgage loan secured by real estate containing 1 or 2 dwelling units; 2) Their transaction was documented as one subject to the Truth in Lending Act; 3) Their note and mortgage were originated by or assigned to Washington Mutual Bank, F.A.; 4) Their Truth in Lending Statement discloses the security interest taken by the 1-4 Family Rider in substantially the same manner as plaintiff’s Truth in Lending statement and; 5) Their mortgage is dated on or after March 8, 2000 (one year prior to the filing of this action) through the date of notice provided to the class.
IV. WHO REPRESENTS THE CLASS?
The following attorneys represent Leon, Sr. and the class ("Class Counsel"):
Daniel A. Edelman
EDELMAN, COMBS, LATTURNER, & GOODWIN, LLC
120 South LaSalle Street, 18th Floor
Chicago, Illinois 60603
312-739-4200; (312) 419-0739 (FAX)
(website); (email)
Class Counsel represents your interests in this lawsuit. You will not be charged for their services. You may, however, hire your own attorney at your own cost to advise you in this matter.V. WHAT ARE THE POTENTIAL BENEFITS?
Washington Mutual agrees to pay Two Hundred Thousand Dollars ($200,000), to settle the claims of the class. This amount will be divided among those class members who: (i) can be located, (ii) do not exclude him/herself from the settlement, and (iii) submit a valid claim form attesting to the fact that they satisfy each of the conditions for membership in the class, (attached to this Notice as Exhibit A) and are found to be eligible for payment.
The Plaintiff and the class members who do not opt out hereby release and forever discharge Defendant, their past or present parents, affiliates, subsidiaries, successors, and assigns, and their present or former directors, officers, employees and agents ("Released Parties") of any claim for damages as specified in 15 U.S.C. §1640 which the class members now have, ever had, or hereafter may have against defendant, arising out of the alleged failure to disclose the security interest granted by the 1-4 family rider.
Washington Mutual agrees to pay Five Thousand Dollars ($5,000) to Teofilo Leon, Sr. for his service as class representative and for the settlement of additional claims he holds against the defendant.
Upon Court approval, Plaintiff’s attorneys will receive Seventy Five Thousand Dollars ($75,000) as attorney fees and expenses. You are not responsible to pay any portion of attorney’s fees and costs.VI. OPINION OF CLASS COUNSEL
CONCERNING THE VALUE OF THE SETTLEMENT
The claim asserted on behalf of the class against defendant is under the Truth in Lending Act ("TILA"). The TILA provides for both individual actions and class actions.
In a class action under TILA, the maximum possible recovery is (i) any actual damages suffered by the class members (none are claimed or are likely) and (ii) statutory damages determined by the court, based on the culpability of Washington Mutual’s conduct and the amount of harm caused by Washington Mutual. In these cases the total penalty imposed by the Court cannot exceed $500,000.
In an individual action, the person bringing the suit may recover (i) any actual damages suffered (none are claimed or are likely) and (ii) statutory damages not to exceed $2,000. In a successful class action or individual suit, the person bringing the suit may also be able to recover attorney's fees and the expenses of prosecuting the suit.
Class Counsel believes that this settlement is fair and reasonable in light of the constraints on recovery, and that the class members should accept this settlement. Typically, 15%-33% of class members participate in the settlement. If 25% of the class members in this matter participate in the settlement, then they will receive the maximum amount of $100.
VII. FAIRNESS HEARING
A hearing will be held on the fairness of this proposed settlement. At the hearing, the Court will be available to hear any objections and arguments concerning the fairness of the proposed settlement, including the amount of the award to Plaintiff’s counsel of costs and attorney's fees. The hearing will take place on ____________, at _______ a.m. before Judge Brown in Room1812, of the United States District Court, Northern District of Illinois, 219 South Dearborn Street, Chicago, IL 60604. YOU DO NOT NEED TO APPEAR AT THIS HEARING UNLESS YOU OBJECT TO THE SETTLEMENT.
VIII. WHAT ARE YOUR OPTIONS?
You have the choice of remaining in, or excluding yourself from the class. Each choice has certain risks and consequences. You have the right to discuss your decision with Class Counsel or your own attorney.
1. If you want to participate in the settlement, you must fill out and return the claim form that is attached to this Notice as Exhibit A, on or before _____________, 2002.
If you remain in the class, you are releasing actual damages, if any, that you have against Washington Mutual relating to the disclosure of the security interest created by the 1-4 family rider. Any and all documents that are generated in the administration of the settlement, including returned notices or letters to counsel, will be destroyed one year after the effective date of the settlement.
2. You have the right to exclude yourself from both the class action and the settlement. Any class members who desire to exclude themselves from the action must file a request for exclusion with the Clerk of the United States District Court for the for the Northern District of Illinois, Eastern Division, 219 South Dearborn Street, Chicago, IL 60604. The request for exclusion must be received by the Clerk of the Court on or before , 2002, and must refer to the excluded class member’s name, address, and the name and number of the case. By the same date, the excluded class member must also serve copies of the request for exclusion on the attorneys for the plaintiffs and for Washington Mutual. If you exclude yourself you will not be bound by any decision of the Court nor will you be eligible to participate in the settlement or receive any money from the settlement.
3. If you object to the settlement, and wish to submit an objection rather than simply excluding self from the class action, you must submit your objection in writing to the Clerk of the United States District Court for the for the Northern District of Illinois, Eastern Division, 219 South Dearborn Street, Chicago, IL 60604. The objection must be received by the Clerk of the Court on or before , 2002 and must refer to the name and number of the case. By the same date, the objecting class member must also serve copies of her/his objection on each of the attorneys for the plaintiffs and for Washington Mutual. Any objection must include the objecting class member’s name and address and the name and number of the case and a statement of the reasons why s/he believes that the Court should find that the proposed settlement is not in the best interests of the class. Objectors who file an objection and wish it to be considered, must also appear at the final approval hearing before Judge Brown on ____________, 2002, at _________ a.m.
IMPORTANT: THE COURT REQUIRES THAT ANY REQUESTS FOR EXCLUSION OR OBJECTIONS BE RECEIVED BY THE CLERK BY , 2002. IF YOU MAIL A REQUEST FOR EXCLUSION OR OBJECTION, YOU BEAR THE RISK OF THE REQUEST FOR EXCLUSION OR OBJECTION NOT BEING RECEIVED BY THE CLERK BY THE DEADLINE.IX. CORRECT ADDRESS
If this notice was forwarded by the Postal Service, or if it was otherwise sent to you at an address which is not current, you should immediately send a letter to each of the attorneys for the plaintiffs and for Washington Mutual listed below, stating your past and current addresses.
ATTORNEYS FOR PLAINTIFFS:
Daniel A. Edelman
EDELMAN, COMBS, LATTURNER, & GOODWIN, LLC
120 S. LaSalle, 18th Floor
Chicago, IL 60603
(800) 644-4673; (312) 917-4504; (312) 419-0739 (FAX)
(website); (email)
ATTORNEYS FOR DEFENDANT WASHINGTON MUTUAL
Matthew M. Neumeier
Shelly Malinowski
JENNER & BLOCK
One IBM Plaza
Chicago, IL 60611
(312) 923-2749X. WHO CAN HELP WITH ADDITIONAL INFORMATION?
Any further questions that you or your attorney may have concerning this Notice should be directed to Class Counsel, Edelman, Combs, Latturner & Goodwin, LLC. This description of the case is general and does not cover all of the issues and proceedings thus far. In order to see the complete file, including a copy of the stipulation, you should visit the office of the Clerk of the United States District Court for the for the Northern District of Illinois, Eastern Division, 219 South Dearborn Street, Chicago, IL 60604 The Clerk will make the files relating to this lawsuit available to you for inspection and copying at your own expense.DO NOT ADDRESS ANY QUESTIONS ABOUT THE CASE TO THE CLERK OF THE COURT OR TO THE JUDGE. They are not permitted to answer your questions.
Date:_____________________, 2002. _______________________
Clerk of the Court
EXHIBIT A
Leon v. Washington Mutual Bank, F.A. (ECL no. 6961)
CLAIM FORM
Please return this Claim Form to the following address:
I have obtained from Washington Mutual a mortgage loan secured by 1-4 family real estate. I attest that the purpose of the loan was primarily for personal, family or household purposes that I resided in the property when the loan closed and that there are 2 units or fewer on the property. I declare under penalty of perjury that the foregoing is true and correct.
executed on
PRINT YOUR NAME DATE
PRINT YOUR CURRENT ADDRESS
CITY, STATE AND ZIP CODE
YOUR SIGNATURE
REMEMBER: THE COURT REQUIRES THAT THIS PROOF OF CLAIM FORM BE RECEIVED ON OR BEFORE THE CLOSE OF BUSINESS ________________, 2002.
IF YOU MAIL THE CLAIM FORM, YOU BEAR THE RISK OF THE CLAIM FORM NOT BEING RECEIVED BY THAT DEADLINE.
