Frys v. Brennan & Clark
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 Illinois residents (i) who were sent a collection demand in the form represented by Group Exhibit A, (ii) on a date between December 29, 1997 and the date this Agreement is preliminarily approved by the Court, (iii) which was not returned by the Postal Service, (iv) in an attempt to collect a health care-related debt; (v) who do not opt out of the settlement.
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 Carol Frys v. Michael P. Brennan, Larry Clark and Brennan & Clark, Ltd., case number 98 C 8372, 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?
Carol Frys filed this action in the United States District Court for the Northern District of Illinois, Eastern Division, alleging class action claims against Michael P. Brennan, Larry Clark and Brennan & Clark, Ltd. ("Brennan & Clark"). Ms. Frys alleged that defendants’ letters violated the Fair Debt Collection Practices Act ("FDCPA") by conveying the false impression to consumers that each emanates from a law firm, and that a lawsuit is about to be filed against them.
Brennan & Clark deny that it in any way violated the FDCPA, and specifically deny that its letters convey the false impressions complained of.
Carol Frys, Maria Ramos and Brennan & Clark negotiated a settlement agreement. You appear to be a member of the class.
III. WHO IS IN THE CLASS?
On December 1, 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:
(i) an Illinois resident (ii) who was sent a collection demand in the form represented by Group Exhibit A, (iii) on a date between December 29, 1997 and the date the Agreement is preliminarily approved by the Court, (iv) which was not returned by the Postal Service, (v) in an attempt to collect a health care-related debt; (vi) who does not opt out of the settlement.
IV. WHO REPRESENTS THE CLASS?
The following attorneys represent Carol Frys, Maria Ramos and the class ("Class Counsel"):
Daniel A. Edelman
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?
Brennan & Clark agree to pay a total of $15,500 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 March 15, 2000.
Brennan & Clark agree to pay $1,000 each to plaintiffs Carol Frys and Maria Ramos.
Upon Court approval, Brennan & Clark shall pay plaintiffs’ attorneys $3,000 for 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 Brennan & Clark is under the Fair Debt Collection Practices Act ("FDCPA"). The FDCPA 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 determined by the court, based on the culpability of the defendant's conduct and the amount of harm caused by the defendant. The penalty cannot exceed the smaller of $500,000 or 1% of the defendant's net worth. The net worth of Brennan & Clark is $370,000, though Class Counsel disputes this amount. The FDCPA has a statutory damage cap for the class of 1% of net worth. 15 U.S.C. 1692k. Accordingly, 1% of Brennan & Clark’s net worth is $3,700. Brennan & Clark has agreed to pay $15,500 to the class members . This amount is well over 1% statutory maximum.
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 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 February 14, 2001, at 9:30 a.m. before Judge Gottschall in Room 1919 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 February 1, 2001, 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 plaintiffs and for the defendants 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 February 1, 2001 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 defendants 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 Gottschall on February 14, 2001, at 9:30 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 MARCH 15, 2001.
IMPORTANT: THE COURT REQUIRES THAT ANY REQUESTS FOR EXCLUSION OR OBJECTIONS BE RECEIVED BY THE CLERK BY FEBRUARY 1, 2001. 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 the defendants listed below, stating your past and current addresses.
ATTORNEYS FOR PLAINTIFFS: ATTORNEYS FOR DEFENDANTS:
Daniel A. Edelman David Genelly
EDELMAN, COMBS & LATTURNER VANASCO, WAYNE & GENELLY
120 S. LaSalle, 18th Floor 401 S. LaSalle, Suite 1302
Chicago, IL 60603 Chicago, IL 60605
(312) 917-4504 (312) 786-5100
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.
