Commissioners of Public Works of the City of Charleston v. Costco Wholesale Corporation

CourtDistrict Court, D. South Carolina
DecidedJanuary 24, 2022
Docket2:21-cv-00042
StatusUnknown

This text of Commissioners of Public Works of the City of Charleston v. Costco Wholesale Corporation (Commissioners of Public Works of the City of Charleston v. Costco Wholesale Corporation) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commissioners of Public Works of the City of Charleston v. Costco Wholesale Corporation, (D.S.C. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA CHARLESTON DIVISION Commissioners of Public Works of the City of Civil Action No. 2:21-cv-42-RMG Charleston (d.b.a. Charleston Water System), Individually and on Behalf of All Others Similarly Situated,

Plaintiff, ORDER AND OPINION v. Costco Wholesale Corporation, CVS Health Corporation, Kimberly-Clark Corporation, The Proctor & Gamble Company, Target Corporation, Walgreen Co., and Wal-Mart, Inc., Defendants.

Before the Court is Plaintiff’s motion for final approval of class action settlement and award of attorneys’ fees and expenses. (Dkt. No. 123). For the reasons set forth below, the Court grants Plaintiff’s motion. Background In this putative class action, Plaintiff the Commissioners of Public Works of the City of Charleston (d.b.a. “Charleston Water System”) (“Plaintiff”), on behalf of itself and all others similarly situated, alleges that Defendants Costco Wholesale Corporation (“Costco”), CVS Health Corporation (“CVS”), Kimberly-Clark Corporation (“Kimberly-Clark”), The Proctor & Gamble Company (“P&G”), Target Corporation (“Target”), Walgreen Co. (“Walgreens”), and Wal-Mart, Inc. (“Wal-Mart”) design, market, manufacture, distribute, and/or sell wipes labeled as “flushable” which are not actually flushable. These wipes allegedly damage sewer systems across the country. Plaintiff brings claims for nuisance, trespass, strict products liability—defective design, strict products liability—failure to warn, and negligence. Plaintiff’s original and Amended Complaint seek—in addition to reasonable attorney’s fees and costs for class counsel—prospective injunctive relief only. (Dkt. Nos. 1, 85). On April 26, 2021, Plaintiff moved for preliminary approval of a settlement reached between itself and Kimberly-Clark (the “Parties”). (Dkt. No. 59). Attached to the motion was a full copy of the Parties’ Stipulation of Settlement (the “Settlement Agreement”). (Dkt. No. 59-2).

At the time Plaintiff filed its motion for settlement approval, Plaintiff’s original complaint, (Dkt. No. 1), was its operative pleading. On June 10, 2021, Kimberly-Clark filed a declaration asserting it had complied with the notice requirements of the Class Action Fairness Act of 2005, 28 U.S.C. § 1715. (Dkt. No. 77). On July 15, 2021, in response to two letters received by the Court from putative class members, (Dkt. Nos. 80, 81), the Parties agreed to amend the Settlement Agreement’s definition of “Plaintiff’s Released Claims” to: “Plaintiff’s Released Claims” means any and all claims of Plaintiff and the Settlement Class Members for injunctive relief that arise from or relate to the claims and allegations in the Complaint, including Unknown Claims, and the acts, facts, omissions, or circumstances that were or could have been alleged by Plaintiff in the Action, including but not limited to all claims for injunctive relief related to any wipe products (flushable and non-flushable) currently or formerly manufactured, marketed, or sold by Kimberly-Clark or any of its affiliates. For the avoidance of doubt, “Plaintiff’s Released Claims” do not include claims for damages or other monetary relief, including claims for monetary relief under the law of nuisance.

(Dkt. Nos. 82, 83). The amendment was intended to dispel concerns raised by the Mayor and City Council of Baltimore and Anne Arundel County that the Settlement Agreement released monetary claims against Kimberly-Clark. See, e.g., (Dkt. No. 82 at 2). On August 12, 2021, Plaintiff filed its Amended Complaint. (Dkt. No. 85). The Court Preliminarily Approves the Settlement Agreement On August 25 and September 9, 2021, the Court held proceedings on Plaintiff’s motion for preliminary approval of class action settlement. During these proceedings, the Parties agreed to supplement the notice procedures delineated in the Settlement Agreement, (Dkt. No. 59-2 § 7), to provide direct, mailed notice to potential Settlement Class Members—specifically 17,297 publicly owned sewage treatment plant operators located in the United States as of August 27, 2021. The Parties also agreed to publish Summary Notice of one-half page in size once in both the print and

online editions of the Water Environment Federation’s magazine Water Environment & Technology. The Parties filed a copy of the proposed postcard notice. (Dkt. No. 97). The Parties also provided a hard copy of the notice for the Court’s inspection. On October 4, 2021, the Court granted Plaintiff’s motion for preliminary settlement approval. (Dkt. No. 98). The Court subsequently issued an order regarding the timeline for proposed settlement. (Dkt. No. 110). The Court set forth October 25, 2021, as the deadline for publication of the Notice of Settlement via press release, U.S. mail, email, and website, and further ordered that Notice of Settlement be published in the November edition of Water Environment & Technology. (Id. at 1).

The Court further ordered that Class Counsel file for final approval of the Settlement Agreement and Class Counsel’s application for fees and expenses by December 29, 2021. (Id. at 2); see also (id.) (setting December 29, 2021, as the deadline for filing objections and January 12, 2022, as the deadline for filing reply papers to any objections). A fairness hearing was set for January 24, 2022. On December 13, 2021, Plaintiff moved for final approval of class action settlement and an award of attorneys’ fees and expenses. (Dkt. No. 123). On January 24, 2022, the Court conducted a hearing for final approval of settlement and an award of attorneys’ fees and expenses via teleconference. Both Plaintiff and Kimberly-Clark were present and represented by counsel. Analysis When a district court preliminarily approves a settlement after a hearing, the proposed settlement enjoys a presumption of fairness. See Berkley v. U.S., 59 Fed. Cl. 675, 681 (2004) (“Settlement proposals enjoy a presumption of fairness afforded by a court's preliminary fairness determination.”); In re Gen. Motors Corp. Pick–Up Truck Fuel Tank Products Liab. Litig., 55 F.3d

768, 785 (3d Cir. 1995) (“This preliminary determination establishes an initial presumption of fairness....”); Martin v. Cargill, Inc., 295 F.R.D. 380, 383 (D. Minn. 2013) (accord); In re Tableware Antitrust Litig., 484 F.Supp.2d 1078, 1079 (N.D. Cal. 2007) (accord); Gaston v. LexisNexis Risk Sols. Inc., No. 516CV00009KDBDCK, 2021 WL 2077812, at *1 (W.D.N.C. May 24, 2021) (accord). 1. Certification of Settlement Class A settlement class pursuant to Fed. R. Civ. P. 23(b)(2) is hereby certified. The “Settlement Class” is composed of “All STP Operators in the United States whose systems were in operation between January 6, 2018 and the date of preliminary approval [October 4, 2021].” (Dkt. No. 59-2

¶ 1.23). An “STP Operator” is an entity that “owns and/or operates sewage or wastewater conveyance and treatment systems, including municipalities, authorities, and wastewater districts.” (Id. at 2). Further, the Court finds that the Settlement Class satisfies the requirements for class certification under Federal Rule of Civil Procedure 23. The requirements that must be met under Rule 23(a) are (1) numerosity, (2) commonality, (3) typicality, and (4) adequacy of representation. In addition, the parties must satisfy one of the subsections of Rule 23(b) for their proposed classes. The Court confirms its prior holding that the Rule 23(b)(2) Settlement Class satisfies the numerosity requirement of Rule 23(a)(1) as the number of STP Operators in the United States exceeds, at least, 17,000. See, e.g., Cypress v. Newport News Gen.

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Commissioners of Public Works of the City of Charleston v. Costco Wholesale Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commissioners-of-public-works-of-the-city-of-charleston-v-costco-wholesale-scd-2022.