Champs Sports Bar & Grill Co. v. Mercury Payment Systems, LLC

275 F. Supp. 3d 1350
CourtDistrict Court, N.D. Georgia
DecidedAugust 31, 2017
DocketCase No. 1:16-CV-00012-MHC
StatusPublished

This text of 275 F. Supp. 3d 1350 (Champs Sports Bar & Grill Co. v. Mercury Payment Systems, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Champs Sports Bar & Grill Co. v. Mercury Payment Systems, LLC, 275 F. Supp. 3d 1350 (N.D. Ga. 2017).

Opinion

FINAL ORDER AND JUDGMENT

MARK H. COHEN, UNITED STATES DISTRICT JUDGE

This matter is before the Court on the following motions: (1) Plaintiffs’ Unopposed Motion for Final Approval of Class Action Settlement and Certification of the Settlement Class [Doc. 81]; and (2) Plaintiffs’ Motion for Attorneys’ Fees, Expenses, and Service Awards to the Class Representatives [Doc. 82]. Having considered the written submissions and after oral argument at a hearing on August 29, 2017, the Court hereby GRANTS both motions for the reasons set forth below.

BACKGROUND

(1)Defendant Mercury Payment Systems, LLC is in the business of handling credit and debit card transactions for merchants. Mercury and Defendant Global Payments Direct, Inc., a back-end payment card processing company, act as intermediaries between the parties to a payment card transaction, ensuring that merchants are paid and the financial institutions and card networks (such as Visa and MasterCard) receive the fees due them. Pursuant to the form contracts at issue that each merchant was required to sign,- as construed by Plaintiffs, Mercury and Global were to collect fees for their own services; pass through, at cost, the fees charged by the card networks and financial institutions involved; and send monthly invoices summarizing the transactions and describing the fees that were charged.

(2) Plaintiffs allege that, contrary to what their contracts provided, Defendants were inflating the fees that should have been passed through at cost and collecting other unauthorized charges. In their Consolidated Amended Class Action Complaint [Doc. 42] (“Consolidated Complaint”), Plaintiffs seek to recover the alleged overcharges on behalf of themselves and a national class of other merchants, asserting claims for breach of contract, fraud, unjust enrichment and violation of the Georgia and federal RICO statutes. Defendants deny Plaintiffs’ allegations and contend the claims have no merit. After the Consolidated Complaint was filed, Defendants moved to dismiss the fraud and RICO claims, which motion was fully briefed. In October, 2016, the parties agreed to discuss settlement and, at their request, the Court deferred ruling on the pending dismissal motion.

(3) The parties periodically updated the Court of the status of their negotiations and, on April 26, 2017, notified the Court that they had reached a tentative settlement. The tentative deal was later [1353]*1353reduced to a binding Settlement Agreement and Release [Doc. 76-2] (“Settlement Agreement”), which the parties submitted for preliminary .approval- on May 12, 2017. The Court preliminarily approved the proposed Settlement Agreement and the.; plan for notifying the class on May 16, 2017. Order [Doc. 78] (“Preliminary Approval Order”).

(4) Pursuant to the plan approved in the Preliminary Approval Order, notice has been disseminated to the class. On or before the objection deadline, a total of four objections were filed with the Court by Jason’s. Deli, Aaron Webster, Advanced Nutrition Center, and Leighasta, Inc. The objections of Jason’s Deli, Advanced Nutrition Center, and Leighasta, Inc. were withdrawn, and the withdrawal of the three objections is hereby approved pursuant to Fed. R. Civ. Proc. 23(e)(5). Plaintiffs moved to strike the objection filed by Mr. Webster because of his willful refusal to comply with the requirements of the Preliminary Approval Order. The Court gave Mr. Webster an opportunity to respond in writing and to comply with the Preliminary Approval Order. Mr. Webster failed to demonstrate that he had complied or would comply with the Preliminary Approval Order and offered no reason why he was unable to comply. Therefore, in accordance with the 'terms of the Preliminary Approval Order, to prevent continuing prejudice to the class, and as further explained on the record at' the telephonic hearing, the Court granted Plaintiffs’ motion, struck Mr. Webster’s objection, and deemed that objection to be waived and forfeited. [Doc. 99.]

(5) Despite the withdrawal of three objections and the Court’s order to strike the fourth, and in furtherance of its responsibility to absent class members, the Court has reviewed the substance of the arguments raised in the aforementioned objections and considered the brief filed by Plaintiffs that addresses those arguments. The Court is persuaded that none of the arguments raised by these objectors have merit and, accordingly, if any of the objections remained before the Court, they would be denied. •

SETTLEMENT TERMS

(6) In a broad overview,‘the Settlement Agreement establishes a settlement fund of $52 million and.makes available additional benefits to the class, bringing its total potential value to $72.5 million. The settlement fund will be used to pay cash benefits to class members, costs, of notice and administration, attorneys’ fees and expenses, and service awards. All class members are eligible to receive a cash payment. Current customers will automatically receive a cash payment by electronic funds transfer unless they affirmatively ■ choose to accept a credit of twice the amount of the cash payment that can be used to buy certain products that Mercury offers. Former customers will receive a payment if they file a claim form attesting that they are in the class and providing their current contact information. Former customers are not eligible for the credit option because they no longer do business with Mercury.

(7) The cash payments are calculated in the same manner for current and former customers pursuant to an allocation formula attached as Exhibit 1 to the Settlement Agreement. If the total of the credits and cash distributed to current customers, the cash amount claimed by former customers, costs of notice and administration, attorneys’ fees and expenses, and service awards is less than $38 million, then, the difference between the total of all those amounts and $38 million will be distributed pro rata to class members who are either current customers, of Mercury or former customers who.timely submit a claim, and the amount remaining in the [1354]*1354settlement fund after this distribution shall be returned to Mercury,' along with any accrued interest. If the total of all those amounts is more than $38 million but less than $52 million, the money remaining in the settlement fund after payment of all obligations will be returned to Mercury, along with any accrued interest.

(8) In conjunction with the Settlement Agreement, the class will release Defendants from the claims that were or could have been raised in this case. Class members specifically retain all rights to challenge invoices sent by Defendants after May 16, 2017, the date of preliminary approval. In turn, Defendants will release class members from any potential liability for payment of the attorneys’ fees and-expenses incurred by defendants in defending this case.

APPROVAL OF CLASS NOTICE

. (9) The class has been notified of the Settlement Agreement pursuant to the plan approved by the Court. After having reviewed the Declaration of Cameron R. Azari, Esq. Regarding Notice [Doc. 81-2], a representative of the settlement administrator appointed to carry out the notice program, the Court had questions regarding how Mr. Azari calculated the number of class members who received notice of the Settlement Agreement and the basis for his conclusion regarding the percentage of the class members that received the notice. The Court directed the parties to obtain a supplemental declaration from Mr.

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200 F.R.D. 685 (N.D. Georgia, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
275 F. Supp. 3d 1350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/champs-sports-bar-grill-co-v-mercury-payment-systems-llc-gand-2017.