BUTAKIS v. NVR, INC.

CourtDistrict Court, E.D. Pennsylvania
DecidedApril 11, 2025
Docket2:22-cv-02971
StatusUnknown

This text of BUTAKIS v. NVR, INC. (BUTAKIS v. NVR, INC.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BUTAKIS v. NVR, INC., (E.D. Pa. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

BRYAN BUTAKIS, on behalf of himself and CIVIL ACTION all others similarly situated, et al.,

Plaintiffs, NO. 22-2971-KSM

v.

NVR, INC., doing business as NVHOMES,

Defendant.

MEMORANDUM Marston, J. April 11, 2025

Plaintiffs Bryan Butakis and Joseph Hillen bring this putative class action on behalf of themselves and 75 other individuals who purchased homes at the Greystone subdivision in West Chester, Pennsylvania from Defendant, NVR, Inc. (Doc. No. 24.) They claim that NVR failed to disclose that the Greystone properties were subject to a special assessment, which would incur interest and other fees unless paid in full at the time of closing. (Id.) Plaintiffs, on behalf of the putative class, and NVR have negotiated a class action settlement and release agreement (the “Settlement Agreement”) to resolve the claims raised in the Second Amended Complaint. (Doc. No. 47-3.) On December 3, 2024, the Court provisionally certified the class and preliminarily approved the Settlement Agreement. (Doc. No. 50.) Plaintiffs now seek final certification and approval. (Doc. No. 54.) In addition, they move for an award of attorneys’ fees, reimbursement of expenses to class counsel, and a service award to Plaintiffs as the class representatives. (Doc. No. 51.) For the reasons below, the Court certifies the class, approves the terms of the Settlement Agreement, and grants the motion for attorneys’ fees, reimbursement of expenses, and service awards. I. BACKGROUND A. Procedural History On July 28, 2022, Plaintiffs filed this action against NVR and other parties which have since been dismissed. (Doc. Nos. 1, 10, 28.) The matter was originally assigned to the Honorable Eduardo C. Robreno, who oversaw multiple rounds of motions to dismiss and the close of the pleadings. (See Doc. Nos. 15, 21, 22, 26, 28.) On May 5, 2023, Plaintiffs filed the

operative Second Amended Complaint asserting claims for fraud, misrepresentation, and violations of state consumer protection and privacy statutes. (Doc. No. 24.) In short, Plaintiffs alleged that they purchased homes at the Greystone subdivision from NVR. Each property was subject to a fund created pursuant to the Neighborhood Improvement District Act (“NID”), and the fund was capitalized by special assessments paid by the property owners. (Id. at ¶ 48.) Plaintiffs claimed that before closing on their properties, NVR gave them a one-page “NID Disclosure” which represented that the special assessment could be “paid in full at any time,” but if not paid at closing would be “due and payable in annual installments.” (Id. at ¶ 12.) NVR allegedly did not disclose, however, that if paid in annual installments, the assessments would

bear interest and fees. (See, e.g., id. at ¶¶ 14, 49, 56, 57.) Two months after Plaintiffs filed the Second Amended Complaint, the matter was reassigned to the undersigned (Doc. No. 31), and on August 3, 2023, the Court entered a scheduling order to govern discovery and dispositive motions (Doc. No. 35). The parties exchanged discovery, including interrogatories and document productions. (See Doc. No. 47-2 at ¶ 12.) And over the next five months, they engaged in three settlement conferences with Magistrate Judge Carol Sandra Moore Wells. (See Doc. Nos. 37, 42, 44.) During those conferences, the parties agreed to a settlement in principle, but did not discuss attorneys’ fees or

2 service awards. (Doc. No. 47-2 at ¶ 14.) Instead, fees and awards were separately negotiated after the parties reached an agreement on relief for the settlement class. (Id.) On July 22, 2024, Plaintiffs filed an unopposed motion for preliminary certification of the settlement class and preliminary approval of the class action settlement. (Doc. No. 47.) The

Court held a hearing on the motion on November 13, 2024 (Doc. No. 49), and on December 3, 2024, the Court preliminarily certified a Rule 23 settlement class, approved the settlement terms, and authorized the settlement administrator to notify the class of the settlement. (Doc. No. 50.) On February 18, 2025, Plaintiffs filed an unopposed motion for attorneys’ fees and litigation expenses totaling $90,000 and approval of service awards to each class representative in the amount of $2,000. (Doc. No. 51.) Then, on March 24, 2025, Plaintiffs filed an unopposed motion for final certification of the class and approval of the settlement terms. (Doc. No. 54.) The Court held a fairness hearing with counsel on April 7, 2025. No class members attended the hearing. B. Settlement Agreement The Settlement Agreement identifies the following settlement class: “[A]ll persons who,

in purchasing a home at the Greystone, received the NID Disclosure and settled on the home during the period beginning January 28, 2021, and ending on July 28, 2022.” (Doc. No.47-3 at 10.) Within this class, there are four subclasses based on when each class member purchased a property at the Greystone and whether the special assessment will be paid in full as of the “Effective Date,” which is the date that the Order accompanying this Memorandum is rendered a final judgment (i.e., “the successful exhaustion of all appeal periods without appeal or resolution of any appeals or certiorari proceedings in a manner upholding the Final Approval Order and Final Judgment”). (Id. at 5–6.)

3 1. One Year Paid Off Subclass: “[A]l persons who (i) settled on a home at the Greystone beginning July 28, 2021, and ending on July 28, 2022, and (ii) ha[ve] paid off the Special Assessment associated with the home in full before the Effective Date. This includes original purchasers but not subsequent purchasers in this period.” (Id. at 7.) 2. Added Six Month Paid Off Subclass: “[A]l persons who (i) settled on a home at the Greystone beginning January 28, 2021, and ending on July 27, 2021, and (ii) ha[ve] paid off the Special Assessment associated with the home in full before the Effective Date. This includes original purchasers but not subsequent purchasers in this period.” (Id. at 4.) 3. One Year Still Paying Subclass: “[A]l persons who (i) settled on a home at the Greystone beginning July 28, 2021, and ending on July 28, 2022, and (ii) ha[ve] not paid off the Special Assessment associated with the home in full before the Effective Date. This includes original purchasers but not subsequent purchasers in this period.” (Id. at 7.) 4. Added Six Month Still Paying Subclass: “[A]l persons who (i) settled on a home at the Greystone beginning January 28, 2021, and ending on July 27, 2021, and (ii) ha[ve] not paid off the Special Assessment associated with the home in full before the Effective Date. This includes original purchasers but not subsequent purchasers in this period.” (Id. at 4.) This is not a common fund action. Instead, under the Settlement Agreement, every class member is entitled to receive two cash payments, which are calculated using a set formula for each subclass: 1. One Year Paid Off Subclass: (i) First payment = (NID payoff amount + amount already paid for interest + amount already paid for admin expenses) – NID Principal Amount stated in NID Disclosure; and (ii) Second payment = ((the sum of the interest and administrative fees the class member would have paid beginning the year after they paid off the NID through Year 9) – stated NID Principal Amount in NID Disclosure) x .0425 interest rate. 2. Added Six Month Paid Off Subclass: The same calculations as the One Year Paid Off Subclass but reduced by 45% to account for the litigation risk surrounding NVR’s statute of limitations defenses. 4 3.

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BUTAKIS v. NVR, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/butakis-v-nvr-inc-paed-2025.