Almada v. Krieger Law Firm, A.P.C.

CourtDistrict Court, S.D. California
DecidedMay 6, 2025
Docket3:19-cv-02109
StatusUnknown

This text of Almada v. Krieger Law Firm, A.P.C. (Almada v. Krieger Law Firm, A.P.C.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Almada v. Krieger Law Firm, A.P.C., (S.D. Cal. 2025).

Opinion

1 2 3 4 5 UNITED STATES DISTRICT COURT 6 SOUTHERN DISTRICT OF CALIFORNIA 7 8 JEFFREY A. ALMADA, on behalf of Case No.: 19-cv-2109-MMP himself and all others similarly situated 9 class members, ORDER GRANTING IN 10 SUBSTANTIAL PART PLAINTIFF’S Plaintiff, UNOPPOSED MOTION FOR THIRD 11 v. DISTRIBUTION FROM THE 12 RESIDUAL COMMON FUND AND KRIGER LAW FIRM, A.P.C., FINAL APPROVAL OF CY PRES 13 Defendant. BENEFICIARIES 14 [ECF No. 87] 15 16 17 Before the Court is Plaintiff’s Unopposed Motion for a Third Distribution from the 18 Residual Common Fund and Final Approval of Cy Pres Beneficiaries. ECF No. 87. No 19 opposition was filed.1 For the reasons stated herein, the Court GRANTS IN 20 SUBSTANTIAL PART Plaintiff’s motion. 21 I. RELEVANT BACKGROUND 22 The Court described the background in detail in its May 16, 2024 Order. ECF No. 23 86. In 2019, Plaintiff filed a putative class action against the Kriger Law Firm, A.P.C. 24 25 1 Civil Local Rule 7.1(f)(3)(c) provides “Waiver: If an opposing party fails to file the papers 26 in the manner required by Civil Local Rule 7.1.e.2, that failure may constitute a consent to 27 the granting of a motion or other request for ruling by the Court.” By virtue of this rule, because Defendant did not file an opposition, the Court may conclude Defendant consents 28 1 (“Defendant”) for violations of the Fair Debt Collection Practices Act (“FDCPA”), 15 2 U.S.C. § 1692, et seq., and the Rosenthal Fair Debt Collection Practices Act (“RFDCPA”), 3 California Civil Code sections 1788 to 1788.32. ECF Nos. 1, 15. 4 In January 2023, the Court issued final approval of the parties’ Settlement.2 ECF No. 5 83 (“Final Approval Order”). The Court also preliminarily approved the National 6 Consumer Law Center (“NCLC”) and Public Justice as the proposed cy pres recipients to 7 share any remaining funds in equal parts. Id. Thereafter, Settlement checks in the amount 8 of $507.11 were mailed to the 260 participating Settlement Class Members. After the 180- 9 day check-cashing period, sixty-five checks remained uncashed and were voided, leaving 10 $32,962.15 in the Common Fund. 11 In March 2024, Plaintiff filed an Unopposed Motion for a Second Distribution from 12 the Residual Common Fund and Final Approval of Cy Pres Beneficiaries. ECF No. 85. On 13 May 16, 2024, the Court approved a second distribution, finding it was administratively 14 and economically feasible to make a second distribution to the 195 participating Settlement 15 Class Members who cashed their initial checks, and an additional distribution was both 16 consistent with and indeed specifically contemplated by the Settlement Agreement. ECF 17 No. 86 at 6. The Court denied without prejudice Plaintiff’s request to approve the cy pres 18 recipients, finding it premature prior to completing the second distribution. Id. at 6–8. 19 Pursuant to this Court’s May 16, 2024 Order, on June 28, 2024, checks in the amount 20 of $154.90 were mailed to each the 195 participating Settlement Class Members who 21 cashed their initial check. ECF No. 87-2 ¶ 3. The check cashing period expired on 22 December 25, 2024 (180 days from issuance). Id. ¶ 4. Thirty-six checks3 remained 23 uncashed for a total of $5,576.40 remaining the Common Fund. Id. ¶ 5. 24 25 2 The Agreement has been filed with the Court at ECF No. 75-3. Unless otherwise 26 specified, defined terms or capitalized terms in this Order have the same meaning as in the 27 Settlement Agreement. See ECF No. 83 ¶ 7, n. 1.

28 1 Plaintiff now moves the Court to approve a third distribution from the Common 2 Fund to the 159 Settlement Class Members who cashed their second distribution check. 3 ECF No. 87. In support of the current motion, Plaintiff filed a declaration from the 4 Settlement Administrator explaining the administrative cost of completing a third 5 distribution is $2,717, so a third distribution is anticipated to result in an additional payment 6 of approximately $17.98. ECF No. 87-2 ¶¶ 6–7. In addition, Plaintiff seeks approval of two 7 cy pres recipients, NCLC and Public Justice, for distribution of any unclaimed funds 8 remaining after the third distribution. ECF No. 87. 9 II. THIRD DISTRIBUTION 10 The Ninth Circuit has recognized “additional pro rata distributions to those class 11 members who did claim funds” is a potential alternative for distributing unclaimed 12 settlement funds. In re Google Inc. St. View Elec. Commc’ns Litig., 21 F.4th 1102, 1110– 13 11 (9th Cir. 2021) (hereinafter “In re Google”). A district court has “broad discretionary 14 powers in shaping equitable decrees for distributing unclaimed class action funds” and its 15 “choice among distribution options should be guided by the objectives of the underlying 16 statute and the interests of the silent class members.” Six (6) Mexican Workers v. Ariz. 17 Citrus Growers, 904 F.2d 1301, 1307 (9th Cir. 1990). “Although the terms of a settlement 18 agreement may dictate how unclaimed settlement funds should be allocated, a district court 19 may otherwise exercise its equitable powers in managing the distribution of the settlement 20 proceeds.” Connor v. JPMorgan Chase Bank, N.A., No. 10-cv-1284-GPS-BGS, 2021 WL 21 1238862, at *1 (S.D. Cal. Apr. 2, 2021). 22 As this Court previously found in its May 16, 2024 Order, the Settlement Agreement 23 specifically contemplates a cy pres distribution only after it is no longer administratively 24 feasible to provide an additional distribution to Settlement Class Members. ECF No. 86 at 25 4 (citing ECF No. 75-3, Settlement Agreement § III.U). Plaintiff asserts because it is 26 economically feasible to conduct a third distribution to the 159 Settlement Class Members 27 who cashed their second distribution check, a third distribution must occur before a 28 distribution to the proposed cy pres beneficiaries is appropriate. ECF No. 87-1 at 9–10. 1 The Court finds a third distribution is administratively feasible given the amount of 2 uncashed funds ($5,576.40) remaining in the Common Fund following the second 3 distribution. This amount would cover the administrative costs associated with the third 4 distribution in the amount of $2,717. The Court also agrees the third distribution should be 5 limited to the 159 Settlement Class Members who cashed their second distribution 6 Settlement checks. See In re Google Inc., 21 F.4th at 1110–11; Malta v. Fed. Home Loan 7 Mortg. Corp., No. 10-cv-1290-BEN-NLS, 2017 WL 11837070, at *3 (S.D. Cal. Aug. 1, 8 2017). Accordingly, a third distribution would result in a non-de minimis payment of 9 approximately $17.98 to participating Settlement Class Members. Finally, a third 10 distribution is consistent with the Settlement’s terms and directly benefits class members; 11 thus, it is preferable to a cy pres distribution in these circumstances. See Klier v. Elf 12 Atochem N. Am. Inc., 658 F.3d 468, 475 (5th Cir. 2011); see also Connor, 2021 WL 13 1238862 at *2 (“Ninth Circuit precedent regarding cy pres distributions affirms the Court’s 14 view that a second distribution to class members, where possible and not contrary to the 15 aims of the settlement agreement, is often preferable to a cy pres distribution”) (footnote 16 omitted). Accordingly, the Court GRANTS Plaintiff’s motion for a third distribution to 17 participating Settlement Class Members who cashed their second distribution check. 18 III. CY PRES DISTRIBUTION 19 Plaintiff also moves for an order approving NCLC and Public Justice as cy pres 20 recipients to share in equal parts any funds remaining in the Common Fund after the third 21 distribution. ECF No. 87.

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Almada v. Krieger Law Firm, A.P.C., Counsel Stack Legal Research, https://law.counselstack.com/opinion/almada-v-krieger-law-firm-apc-casd-2025.