Lew v. Countrywide Financial Corporation et al

Filing 134

ORDER re 131 STIPULATION WITH PROPOSED ORDER Joint Stipulation to Dismiss Case in Entirety, with Prejudice to Plaintiff and the Qualified Opt-Ins Only filed by Countrywide Bank, N.A., Countrywide Bank, FSB, Full Spectrum Lending Division, Countrywide Home Loans, Inc., Countrywide Financial Corporation. Signed by Judge Samuel Conti on 8/27/2012. (sclc1, COURT STAFF) (Filed on 8/27/2012)

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1 2 3 4 IN THE UNITED STATES DISTRICT COURT 5 FOR THE NORTHERN DISTRICT OF CALIFORNIA 6 7 8 SAMSON LEW, on behalf of himself and classes of those similarly situated, United States District Court For the Northern District of California 9 Plaintiff, 10 v. 11 12 COUNTRYWIDE FINANCIAL CORPORATION, et al., 13 Defendants. 14 ) Case No. 08-1993 ) ) ORDER RE: JOINT STIPULATION ) ) ) ) ) ) ) ) ) ) ) 15 Plaintiff Samson Lew ("Lew") brings this putative class action 16 in connection with alleged violations of California's wage-and-hour 17 laws and the Fair Labor Standards Act by Defendants Countrywide 18 Financial Corporation and a number of other entities (collectively, 19 "Defendants"). 20 to the putative class by submitting written consent forms (the 21 "Qualified Opt-Ins"). 22 to dismiss the action in its entirety and with prejudice as to Lew 23 and the Qualified Opt-Ins. 24 Fifty-six individuals have affirmatively opted in Now before the Court is a Joint Stipulation ECF No. 131 ("Joint Stip."). Pursuant to the Joint Stipulation of Settlement and Release 25 ("Settlement Agreement"), Defendants shall pay $99,000 to Lew, his 26 attorneys, and the Qualified Opt-Ins. 27 Settlement Agreement provides that Lew will receive $2,465.02, 28 Plaintiff's counsel will receive $36,540, and the remainder will be ECF No. Specifically, the 1 distributed among the Qualified Opt-Ins. 2 Agreement") at 6-7. 3 the Qualified Opt-Ins will release their claims against Defendants. 4 Id. at 8-9. 5 and avoid releasing their claims by returning their settlement 6 checks to Plaintiff's counsel within the ninety-day check-cashing 7 period prescribed by the Settlement Agreement. 8 rights of the other putative class members will not be affected by 9 the Settlement Agreement. United States District Court For the Northern District of California 10 Stip Ex. A ("Settlement In consideration for these payments, Lew and The Qualified Opt-Ins may opt out of the settlement Id. at 9. The Having reviewed the papers submitted by the parties, the Court 11 is concerned about the notice provided to the Qualified Opt-Ins. 12 See ECF No. 133 Ex. A ("Notice"). 13 at least two messages: (1) the Qualified Opt-Ins' settlement checks 14 expire ninety days from the date of issue; and (2) the Qualified 15 Opt-Ins may opt out of the settlement by returning their settlement 16 check to Plaintiffs' counsel within the ninety-day check cashing 17 period. 18 messages could easily be missed by a lay person. 19 first page of the Notice does not even mention the possibility of 20 opting out of the Settlement. 21 where, exactly, the Qualified Opt-Ins should send their settlement 22 checks if they wish to opt out or who they can contact if they have 23 any questions. 24 /// 25 /// 26 /// 27 /// 28 /// The Notice should clearly convey In light of the legalese used in the Notice, these Further, the It is also unclear from the Notice 2 1 The parties shall revise the Notice in accordance with this 2 guidance. 3 Stipulation pending the submission of the revised Notice. The Court shall stay its consideration of the Joint 4 5 IT IS SO ORDERED. 6 7 8 Dated: August 27, 2012 UNITED STATES DISTRICT JUDGE 9 United States District Court For the Northern District of California 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3

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