Adams v. Plaza Finance Co
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 persons (i) who entered into a loan agreement with Plaza Finance Co., Inc., on or after December 22, 1992, that did not contain an arbitration clause enforceable at Plaza's discretion; (ii) Plaza took a security interest in their personal property; (iii) Plaza charged them a fee for non-filing insurance, as indicated by the promissory note; and (iv) the fee was included in the amount financed.
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, entitled Christine Adams v. Plaza Finance Co., Inc., case number 95 C 7567, 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 IS ABOUT?
Christine Adams filed this action in the United States District Court for the Northern District of Illinois, Eastern Division, alleging class action claims against Plaza Finance Co., Inc. ("Plaza"). Ms. Adams alleged that Plaza improperly collected non-filing charges from consumers. In Count I of this complaint, plaintiff alleges that Plaza violated the Truth in Lending Act, 15 U.S.C. 1601 et seq. ("TILA"), by failing to include the charge for non-filing insurance in the finance charge. Count II alleges that Plaza violated the Illinois Consumer Installment Loan Act, 205 ILCS 670/1 et seq. ("CILA"), by imposing unauthorized charges in consumer loan transactions. Count III alleges that Plaza violated the Illinois Consumer Fraud Act, 815 ILCS 505/1 et seq. ("CFA"), by engaging in unfair and deceptive acts and practices.
On January 16, 1998, the district court granted Plaza's motion for summary judgment on Ms. Adam's second amended complaint and denied Ms. Adams's motion for partial summary judgment. Ms. Adams appealed the decision and, on January 27, 1999, the Seventh Circuit Court of Appeals reversed the district court's judgment. On August 20, 1999, the district court granted Ms. Adams's motion for summary judgment as to the liability of Plaza on all counts of Ms. Adams's second amended complaint.
Plaza denies any liability to Ms. Adams or to the proposed class.
Ms. Adams and Plaza have negotiated a settlement agreement. You appear to be a member of the class.
III. WHO IS IN THE CLASS?
On March 15, 2000, the Court determined that this lawsuit should continue as a class action for purposes of this settlement only. To be a member of the class, you must meet the following class description:
All persons (1) who entered into a loan agreement with Plaza, on or after December 22, 1992, that did not contain an arbitration clause enforceable at Plaza's discretion; (2) Plaza took a security interest in their personal property; (3) Plaza charged them a fee for non-filing insurance, as indicated by the promissory note; and (4) the fee was included in the amount financed.
IV. WHO REPRESENTS THE CLASS?
The following attorneys represent Ms. Adams and the class ("Class Counsel"):
Daniel A. Edelman Susan E. Moore EDELMAN, COMBS & LATTURNER 120 South LaSalle Street, 18th Floor Chicago, Illinois 60603 (312) 917-4504 (312) 419-0739 (FAX)
Class Counsel represents your interests in this lawsuit. You will not be charged for their services. You may, however, hire your own attorneys at your own cost to advise you in this matter.
V. WHAT ARE THE POTENTIAL BENEFITS?
Plaza agrees to pay a total of $9,140 to the class members. The money shall be divided equally among each class member who (i) does not opt-out of the settlement, (ii) do not have their notice returned by the Postal Service without a valid forwarding address, and (iii) returns the Proof of Claim form, which is located on the last page of this notice, on or before May 17, 2000.
Plaza agrees to pay $1,500 to Ms. Adams.
Upon Court approval, Plaza shall pay Class Counsel $90,000, as fees and costs (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 Plaza is under the Truth in Lending Act ("TILA"). The TILA provides for both individual actions and class actions.
In a class action, the maximum possible recovery is (i) any actual damages suffered by the class members and (ii) statutory damages in such amount as the court may allow except the total recovery shall not be more than the lesser of $500,000 or 1% of the defendant's net worth. The court has the discretion to award anything between the maximum amount and zero, taking into consideration the amount of any actual damages awarded, the frequency and persistence of failure of compliance by the creditor, the number of people adversely affected, and the extent to which the creditor's failure of compliance was intentional. Plaza has agreed to pay the class a total recovery of $9,140, less administrative costs, which will be divided equally among each class member who returns a Proof of Claim form.
In an individual action, the person bringing the suit may recover (i) any actual damages sustained by such person as a result of the failure to comply with any requirement imposed under the TILA and (ii) twice the amount of any finance charge in connection with the transaction, which cannot be less than $100 nor greater than $1,000. In either an individual or class action, the person bringing the suit can also recover attorneys' fees and the expenses of prosecuting the suit, if it is successful.
Class Counsel believes that this settlement is fair and reasonable in light of the constraint on recovery, and that the class members should accept this settlement.
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 plaintiffs' counsel of costs and attorneys' fees. The hearing will take place on May 24, 2000, at 10:00 a.m. before Judge Leinenweber, Room 1941 of the United States District Court, 219 South Dearborn Street, Chicago, Illinois 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. You have the right to exclude yourself from both the class action and the settlement by filing a request for exclusion with the Clerk of the United States District Court for the Northern District of Illinois, Eastern Division, 219 South Dearborn Street, Chicago, Illinois 60604. The request for exclusion must be received by the Clerk of the Court on or before May 17, 2000, and must refer to your name, address, and the name and number of the case. You must also serve copies of the request for exclusion on each of the attorneys for Ms. Adams and for Plaza listed below in the section entitled "Correct Address" by the same date.
2. If you object to the settlement, and wish to submit an objection rather than simply exclude yourself from the class action, you must submit your objection in writing to the Clerk of the United States District Court for the Northern District of Illinois, Eastern Division, 219 South Dearborn Street, Chicago, Illinois 60604. The objection must be received by the Clerk of the Court on or before May 17, 2000 and must refer to the name and number of the case. You must also serve copies of your objection on each of the attorneys for Ms. Adams and for Plaza listed below in the section entitled "Correct Address" by the same date. Any objection must include your name and address and the name and number of the case and a statement of the reasons why you believe that the Court should find that the proposed settlement is not in the best interests of the class. If you do file an objection and wish it to be considered, you must also appear at the final approval hearing before Judge Leinenweber on May 24, 2000, at 10:00 a.m. Please note that it is not sufficient to simply state that you object. You must state reasons why the settlement should not be approved.
3. If you want to be included in the settlement and receive your share of the class recovery, you MUST FILL OUT AND RETURN THE PROOF OF CLAIM FORM WHICH IS ATTACHED TO THIS NOTICE ON OR BEFORE MAY 17, 2000.
IMPORTANT: THE COURT REQUIRES THAT ANY REQUESTS FOR EXCLUSION OR OBJECTIONS BE RECEIVED BY THE CLERK BY MAY 17, 2000. 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 Ms. Adams and for Plaza listed below, stating your past and current addresses.
ATTORNEY FOR PLAINTIFF: ATTORNEY FOR PLAZA: EDELMAN, COMBS & ROBERTS, PERRYMAN, BOMKAMP & LATTURNER MIEVES, P.C. Daniel A. Edelman, Esq. John L. Walker, Esq. 120 S. LaSalle, 18th Floor One Mercantile Center, Suite 2300 Chicago, IL 60603 St. Louis, MO 63101 (312) 917-4504 (314) 421-1850 (312) 419-0379 (FAX) (314) 421-4346 (FAX)
X. 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. 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 settlement agreement, you should visit the office of the Clerk of the United States District Court for the Northern District of Illinois, Eastern Division, 219 South Dearborn Street, Chicago, Illinois 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: March 15, 2000. Michael W. Dobbins, Clerk of the Court
