Caddle v. Harvey Cycle & Camper, Inc, et al
NOTICE OF CLASS ACTION AND PROPOSED SETTLEMENT
TO: All persons who on or after March 17, 1994, purchased a service contract or extended warranty from Harvey Cycle & Camper, Inc., d/b/a Watson Motorsport Ltd. ("Harvey") through a retail installment contract in which Truth in Lending Act disclosures stated that an amount was paid to a third party on account of an extended warranty or service contract that is other than the amount actually collected by the third party.
PLEASE READ THIS NOTICE CAREFULLY.
THIS IS NOT A NOTICE OF A LAWSUIT AGAINST YOU. YOU MAY BENEFIT FROM READING THIS NOTICE.
WHAT THIS LAWSUIT IS ABOUT
Ms. Caddle filed an action in the United States District Court for the Northern District of Illinois, Eastern Division. The class action complaint alleged that Harvey, in connection with the sale of extended warranties and service contracts in motor vehicle installment transactions misrepresented in the "Itemization of Amount Financed" of its Truth in Lending disclosures the amounts disbursed to entities which issue extended warranties or service contracts in connection with motor vehicle installment purchase transactions, thereby overcharging consumers. Plaintiff further alleged that the misrepresentations violated the Truth in Lending Act, 15 U.S.C. 1601 et seq. ("TILA") and implementing Federal Reserve Board Regulation Z (Count I) and the Illinois Consumer Fraud Act (Counts II and III).
On June 8, 2000, Magistrate Judge Bobrick of the United States District Court for the Northern District of Illinois, Eastern Division, granted preliminary approval of the settlement, subject to a fairness hearing which will take place on September 18, 2000 at 9:00 a.m. in Room 1300, of the United States District Court, 219 South Dearborn Street, Chicago, IL 60604.
You are being sent this notice because you appear to be a member of the class. This notice explains the nature of the lawsuit and the terms of the settlement, and informs you of your legal rights and obligations.
NO ADMISSION OF LIABILITY
By settling this lawsuit, Defendant is not admitting that it did anything wrong.
THE PROPOSED SETTLEMENT
The attorneys for the class believe that this settlement is fair, reasonable, and in the best interest of the class members. The Defendant has represented that there are approximately 2100 class members. The principal terms of the settlement are summarized as follows:
A. Class Recovery: Pursuant to the Settlement Agreement, Defendant will pay $60.00 to each class member who can be located and who does not exclude himself from the settlement.
B. Class Representative: In addition, the named Plaintiff shall receive the total sum of $2,500.
C. Attorneys' Fees and Costs: Class counsel will petition the Court for an award of $10,000 representing reasonable costs and attorneys' fees. The total amount that Class Counsel will petition the Court for will not exceed $10,000. This amount is to be paid in addition to the total recovery to the class.
D. Release: Plaintiff and each class member not opting out shall, as of the Effective Date, be deemed to have given Defendant, their officers, directors, insurers, employees, successors, assigns and agents, a limited release, which shall forever bar them from asserting any claim, under the Truth in Lending Act, the Illinois Consumer fraud Act, or any other legal theory, based on the dissemination of the extended warranties and service contracts in motor vehicle installment transactions at issue in the Complaint.
OPINION OF CLASS COUNSEL CONCERNING THE VALUE OF THE SETTLEMENT
In an individual action, the person bringing the suit may recover (i) any actual damages suffered and (ii) statutory damages determined by the court, but not more than $1,000. There is no minimum. 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.
While the theoretical maximum statutory damages recoverable in an individual action is $1,000, there is no minimum, and no assurance that if any significant number of persons attempt to recover $1,000 each, that they will receive anything.
The Court has the discretion to award anything between the maximum amount and zero, depending on the egregiousness of the violation.
Class counsel believes that this settlement is fair and reasonable and that the class members should accept this settlement.
FAIRNESS HEARING
A hearing will be held on the fairness of the 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 attorneys' fees. The hearing will take place on September 18, 2000, at 9:00 a.m. before Magistrate Judge Bobrick in Room 1300 of the United States District Court, 219 South Dearborn Street, Chicago, Illinois 60604.
WHAT YOU CAN DO
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 September 6, 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 the Plaintiff and for the Defendant 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 September 6, 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 the Plaintiff and for the Defendant 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 hearing before Magistrate Judge Bobrick on September 18, 2000, at 9:00 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. In order to obtain the benefits of the settlement, you do not need to take any action in order to remain in the class.
IMPORTANT: THE COURT REQUIRES THAT ANY REQUESTS FOR EXCLUSION OR OBJECTIONS BE RECEIVED BY THE CLERK BY September 6, 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.
If the settlement is not approved, the case will proceed as if no settlement had been attempted. In that event, Defendant retains the right to contest whether this case should continue to be maintained as a class action and to contest the merits of the claims being asserted against them in this action. There can be no assurance that if the settlement is not approved, the class will recover more than is provided in the settlement, or indeed, anything.
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.
WHAT YOU SHOULD DO NOW
IN ORDER TO RECEIVE THE BENEFITS TO WHICH YOU ARE ENTITLED UNDER THE SETTLEMENT AGREEMENT OUTLINED ABOVE, YOU DO NOT NEED TO TAKE ANY ACTION. You may also consult with an attorney (at your expense), exclude yourself from the case, or file objections, as described above. You also have the right to file an appearance in the case if you wish.
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 Plaintiff and for the Defendant listed below, stating your past and current addresses.
ATTORNEYS FOR DEFENDANT: Randall E. Server, LANDAU, OMAHAMA, TUCKER, PROGAR & SIEBENHAAR, L.L.C., 222 North LaSalle Street, Suite 200, Chicago, IL 60601 (312) 466-8000
