Dominique Parrish v. Volkswagen Group of America, Inc.

Opinion

Case 8:19- cv-01148-DSF-KES Document 100 Filed 03/02/23 Page 1 of 13 Page ID #:J39S34-6

8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 11 12 DOMINIQUE PARRISH, LUDWIG Case No.: 8:19-cv-01148-DSF-KESx COMBRINCK, and TRINE E. UTNE 13 individually, and on behalf of a class of similarly situated individuals, FINAL APPROVAL 14 ORDER AND JUDGMENT Plaintiffs, 15 v. 16 VOLKSWAGEN GROUP OF AMERICA, 17 INC. a Delaware limited liability company,

18 Defendant. 19 20 21 22 23 24 25 26 27 28 Case 8:19- cv-01148-DSF-KES Document 100 Filed 03/02/23 Page 2 of 13 Page ID #:3935

1 The Court having considered Plaintiffs’ Motion for Final Approval of Class 2 Action Settlement and attachments thereto (the “Motion”), which include the 3 parties’ Settlement Agreement, as amended by the Order Nunc Pro Tunc dated 4 October 17, 2022 (ECF 88) described below (“Settlement Agreement”) and 5 supporting Declarations; Class Counsels’ Motion for Attorney Fees, Costs, and 6 Class Representative Service Awards and exhibits thereto; the Declaration of Tarek 7 H. Zohdy and exhibits thereto; and having previously granted preliminary approval 8 of the Class Settlement on January 27, 2022, and modifying that order pursuant to 9 the Order Granting Stipulation to Modify and Amend Settlement, Class Notice and 10 Associated Timetable Nunc Pro Tunc Concerning This Preliminarily Approved 11 Class Action Settlement (“Order Nunc Pro Tunc”), provisionally certifying, for 12 settlement purposes only, the proposed Settlement Class pursuant to Rules 23(a) and 13 23(b)(3) of the Federal Rules of Civil Procedure; and having directed the 14 dissemination of Class Notice pursuant to the approved plan for Class Notice (the 15 “Notice Plan”), which the Court has determined to be the best notice practicable 16 under the circumstances and comporting in all respects with Fed. R. Civ. P. 23(e) 17 and due process; and being satisfied that Class Notice has been disseminated timely 18 and properly; and having received no timely objections to the proposed Class 19 Settlement and only one objection that was not timely; and having held a final 20 fairness hearing on February 27, 2023; and having carefully considered all of the 21 submissions, arguments, and applicable law, finds and orders as follows: 22 1. Certification of Class. The Court finds that, for purposes of 23 Settlement, the applicable prerequisites for class action treatment under Fed. R. Civ. 24 P. 23(a) and 23(b)(3) are satisfied, to wit: The Settlement Class as defined in 25 paragraph I.S. of the Settlement Agreement, as well as below, is so numerous that 26 joinder of all members is not practicable; questions of law and fact are common to 27 the Settlement Class; the Settlement Class Representatives’ claims are typical of the 28 Settlement Class’s claims; the Settlement Class Representatives and Class Counsel 1 Case 8:19- cv-01148-DSF-KES Document 100 Filed 03/02/23 Page 3 of 13 Page ID #:3936

1 have fairly and adequately represented, and will continue to fairly and adequately 2 represent, the interests of the Settlement Class; questions of law and fact common to 3 the Settlement Class predominate over questions affecting only individual members; 4 and a class action is superior to other available methods for fairly and efficiently 5 adjudicating this controversy. In addition, the Court need not consider 6 manageability issues that might be presented by the trial of a nationwide class action 7 involving the issues in this case because the action is being settled rather than 8 litigated. See Amchem Prods., Inc. v. Windsor, 521 U.S. 591, 620 (1997); In re 9 Hyundai & Kia Fuel Econ. Litig., 926 F.3d 539, 556, 568 (9th Cir. 2019) (en banc). 10 2. Notice of the Class Action Settlement. The Court finds that, as 11 demonstrated by the Declaration of Jason Stinehart and counsels’ submissions, Notice 12 to the Settlement Class was timely and properly effectuated in accordance with 13 Fed. R. Civ. P. 23(e) and the parties’ Notice Plan as approved by the Preliminary 14 Approval Order and Order Nunc Pro Tunc. The Court also finds that said Notice 15 constitutes the best notice practicable under the circumstances and satisfies all Rule 16 23(e) and due process requirements. 17 3. CAFA Notice. The Court finds that, in accordance with the Class 18 Action Fairness Act of 2005, 28 U.S.C. § 1715 (“CAFA”), and as set forth by the 19 Declaration of Jason Stinehart, the Settlement Claim Administrator, Rust 20 Consulting, properly and timely caused to be mailed a copy of the proposed class 21 action Settlement and all other documents required by law to the Attorney General 22 of the United States and the State Attorneys General in each jurisdiction where class 23 members reside. No Attorney General has filed an objection to the Settlement. 24 4. Defined Terms of the Settlement Agreement. Unless otherwise 25 defined herein, the terms used in this Order shall have the same meaning as set forth 26 in the Settlement Agreement, if defined therein. 27 5. The Settlement is Fair, Reasonable, and Adequate. The Court finds 28 that the Settlement is fair, reasonable, and adequate and satisfies Fed. R. Civ. P. 2 Case 8:19- cv-01148-DSF-KES Document 100 Filed 03/02/23 Page 4 of 13 Page ID #:3937

1 23 in all respects. The Court finds the Settlement provides substantial benefits to the 2 Settlement Class, including the following: 3 (a) For certain 2019 Volkswagen Jetta Settlement Class Vehicles 4 designated by Vehicle Identification Number (VIN): (1) a free update of the 5 vehicle’s transmission control module software and installation of a damper weight 6 on the drive shaft for all current owners and lessees; and (2) reimbursement of certain 7 unreimbursed out-of-pocket repair expenses for a Past Covered Transmission 8 Rattling Noise Repair for all current and former owners and lessees. 9 (b) For certain 2019 Volkswagen Jetta Settlement Class Vehicles 10 designated by Vehicle Identification Number (VIN): (1) a warranty extension of 11 those vehicles’ New Vehicle Limited Warranties for certain repairs to address a 12 confirmed transmission oil leak for current owners and lessees; and (2) 13 reimbursement of certain paid and unreimbursed out-of-pocket repair expenses for 14 a Past Covered Transmission Oil Leak Repair for all current and former owners and 15 lessees. 16 (c) For 2018, 2019, and 2020 Volkswagen Tiguan Settlement Class 17 Vehicles: (1) a warranty extension for the vehicles’ New Vehicle Limited Warranties 18 to cover certain repairs to address a diagnosed condition of transmission hesitation 19 or jerking for current owners and lessees; and (2) reimbursement of certain paid and 20 unreimbursed out-of-pocket expenses for a Past Covered Transmission 21 Hesitation/Jerking Repair for all current and former owners and lessees. 22 6. The Settlement is particularly beneficial and appropriate when 23 considering the facts and circumstances of this case, the claims and defenses 24 asserted, and the risks of non-recovery or reduced recovery, not being able to obtain 25 and maintain class certification, and potential recovery delays associated with 26 continued litigation of these claims. 27 7. The Settlement is the Result of Extensive Arm’s-Length 28 Negotiations and is Not the Product of Collusion. The Court further finds that the 3 Case 8:19- cv-01148-DSF-KES Document 100 Filed 03/02/23 Page 5 of 13 Page ID #:3938

1 Settlement was entered into as a result of extensive arm’s-length negotiations of 2 highly disputed claims, among experienced class action counsel on both sides. The 3 Settlement was also negotiated with the assistance of an experienced and respected 4 Mediator, Bradley A. Winters, Esq. of JAMS. The Settlement was entered into with 5 a sufficient understanding by counsel of the strengths and weaknesses of their 6 respective cases, and of the potential risks versus benefits of continued litigation, 7 including but not limited to the ability to establish and burden of establishing 8 liability, alleged damages, class certification, and maintenance of class certification 9 through trial and appeal. 10 8. The Court has considered the factors discussed in In re Bluetooth 11 Headset Prod. Liab. Litig., 654 F.3d 935, 947 (9th Cir. 2011) and related decisions, 12 and finds the Settlement was entered into in good faith and was not the product of 13 any collusion between the parties or counsel, whether subtle or otherwise. The Court 14 finds that, despite a “clear-sailing” provision regarding Class Counsel fees and 15 expenses, which is common in the context of class action settlements, the Settlement 16 benefits are not dwarfed by the attorneys’ fees, and the Settlement funds do not 17 revert, further supporting a finding of non-collusiveness. In addition, Class Counsel 18 attorneys’ fees and expenses and Settlement Class Representative service awards 19 were not negotiated until after the parties had reached agreement on the material 20 terms of the Settlement. 21 9. As set forth in the Settlement Agreement, the Court finds that the 22 Settlement does not and shall not constitute any admission, acknowledgement, or 23 evidence of any wrongdoing or liability on the part of Defendant or any Released 24 Party, or of the merit of any claim or allegation that was or could have been asserted 25 in this Action. 26 10. Objections and Requests for Exclusion. There are approximately 27 650,992 Settlement Class Members. Class Notice was timely and properly 28 implemented pursuant to the Preliminary Approval Order and the Order Nunc Pro 4 Case 8:19- cv-01148-DSF-KES Document 100 Filed 03/02/23 Page 6 of 13 Page ID #:3939

1 Tunc. The Court has received no timely objections to the Settlement and only one 2 untimely objection. In addition, only 63 Settlement Class Members submitted 3 timely requests for exclusion from the Settlement, 13 of which did not meet the 4 requirements for a valid exclusion. The Court finds that this demonstrates strongly 5 that the Settlement Class favors the Settlement, which further supports the finding 6 that the Settlement is fair, reasonable, and adequate and worthy of final approval. 7 IT IS THEREFORE ORDERED AND ADJUDGED THAT: 8 The Court certifies, for the purpose of this Settlement, a Settlement 9 Class consisting of the following: 10 All persons and entities who purchased or leased in the 11 United States or Puerto Rico a Settlement Class Vehicle, defined as a model year 2019 Volkswagen Jetta vehicle 12 identified in the VIN list attached as Exhibit A to the 13 Settlement Agreement, or a model year 2018, 2019 and/or 2020 Volkswagen Tiguan vehicle, that was imported and 14 distributed by VWGoA for sale or lease in the United States 15 or Puerto Rico. 16 Excluded from the Settlement Class are (a) all Judges who have presided over the Action and their spouses; (b) all 17 current employees, officers, directors, agents and 18 representatives of Defendant, and their family members; 19 (c) any affiliate, parent or subsidiary of Defendant and any entity in which Defendant has a controlling interest; (d) 20 anyone acting as a used car dealer; (e) anyone who 21 purchased a Settlement Class Vehicle for the purpose of commercial resale; (f) anyone who purchased a Settlement 22 Class Vehicle with salvaged title and/or any insurance 23 company who acquired a Settlement Class Vehicle as a result of a total loss; (g) any insurer of a Settlement Class 24 Vehicle; (h) issuers of extended vehicle warranties and 25 service contracts; (i) any Settlement Class Member who, prior to the date of the Settlement Agreement, settled with 26 and released Defendant or any Released Parties from any 27 Released Claims; and (j) any Settlement Class Member who files a timely and proper Request for Exclusion from 28 5 Case 8:19- cv-01148-DSF-KES Document 100 Filed 03/02/23 Page 7 of 13 Page ID #:3940

the Settlement Class. 1 2 11. The Class certified for the purposes of settlement satisfies all of the 3 requirements of Federal Rules of Civil Procedure 23(a) and 23(b)(3). The Court 4 finds that (a) the Class of 650,992 Class Members is sufficiently numerous so that 5 joinder would be impracticable; (b) there are common questions of law or fact such 6 as whether Class Vehicles suffer from an alleged transmission defect of which 7 Defendant had knowledge and a legal duty to disclose, and whether Defendant 8 breached any express warranty; (c) Plaintiffs’ claims are co-extensive with that of 9 Class Members and are thus typical; (d) Plaintiffs and Class Counsel have 10 adequately represented the Class, and there is no conflict between Plaintiffs and 11 Class Counsel and other Class Members. The Court also finds for the purposes of 12 settlement that the common questions of law or fact predominate over individual 13 issues, and that a class action is superior for reasons including the fact that the 14 Settlement obviates the need for further litigation or trial. 15 12. The Settlement Agreement submitted by the Parties is, in all respects, 16 finally approved pursuant to Fed. R. Civ. P. Rule 23(e) as fair, reasonable, adequate, 17 and in the best interest of the Settlement Class. 18 13. Class Notice was timely and properly implemented pursuant to the 19 Notice Plan. The Class Notice was mailed to 650,992 Settlement Class Members, 20 yet only 50 Settlement Class Members submitted timely and valid requests for 21 exclusion from the Settlement. The Court excludes from the Settlement and Release, 22 on the basis of their timely and valid requests for exclusion, those 50 Settlement 23 Class Members identified in Exhibit A. All other requests for exclusion are rejected 24 for the reasons set forth in Defendant’s Submission in Support of Final Approval 25 (ECF 94). 26 27 28 6 Case 8:19- cv-01148-DSF-KES Document 100 Filed 03/02/23 Page 8 of 13 Page ID #:3941

1 14. The Court finds that the lone purported objection of Kuljit Bains is 2 untimely and it is rejected accordingly. In addition to its untimeliness, the Court 3 finds that this objection is without merit and should be overruled. 4 15. The Parties are directed to perform all obligations under the Settlement 5 Agreement in accordance with its terms. 6 16. The Parties and each person or entity within the Settlement Class are 7 bound in all respects by the terms and conditions of the Settlement Agreement, 8 including but not limited to the Released Claims against all Released Parties 9 contained therein, except for those 50 persons or entities listed in Exhibit A who 10 have duly and timely excluded themselves from the Settlement. 11 17. The Action is dismissed, with prejudice and without costs. 12 18. Nothing in this Final Approval Order and Judgment, the Settlement 13 Agreement, the underlying proceedings, or any documents, filings, submissions or 14 statements related thereto, is or shall be deemed, construed, or argued to be, an 15 admission of, or evidence of, any liability, wrongdoing or responsibility on the 16 part of the Defendant or any Released Party, or of merit of any allegation, claim, 17 fact or point of law that was or could have been asserted in this Action, all of which 18 are expressly denied by Defendant. 19 19. The Released Claims, as set forth in the Settlement Agreement, are 20 fully, finally, and forever deemed released, discharged, acquitted, compromised, 21 settled, and dismissed with prejudice against Defendant and all Released Parties. 22 Accordingly, the Plaintiffs and each Class Member (other than those specifically 23 listed in Exhibit A hereto) shall be deemed to have, and by operation of the Final 24 Order and Judgment shall have, fully and forever released, waived, and discharged 25 the Defendant and all Released Parties from all Released Claims as defined in the 26 Settlement. 27 20. The Court, having conditionally appointed Plaintiffs Dominique 28 Parrish, Ludwig Combrinck, and Trine E. Utne as representatives of the Settlement 7 Case 8:19- cv-01148-DSF-KES Document 100 Filed 03/02/23 Page 9 of 13 Page ID #:3942

1 Class (“Settlement Class Representatives”) in the Preliminary Approval Order, 2 grants final approval of and appoints Dominique Parrish, Ludwig Combrinck, and 3 Trine E. Utne as the Settlement Class Representatives. 4 21. The Court, having conditionally appointed Class Counsel for the 5 Settlement Class in the Preliminary Approval Order, grants final approval of and 6 appoints the law firms of Capstone Law APC and Berger Montague PC as Class 7 Counsel for the Settlement Class (“Class Counsel” or “Settlement Class Counsel”). 8 The Court finds that Class Counsel have diligently and adequately represented the 9 interests of the Class throughout the litigation and do not have any conflict with the 10 Class Members. 11 22. The Court, having conditionally approved Rust Consulting, Inc. as the 12 Claims Administrator, grants final approval of and appoints Rust Consulting, Inc. as 13 the Claims Administrator to effectuate its duties and responsibilities as set forth 14 in the Settlement Agreement. 15 23. The Court has carefully reviewed, and approves, the request for a 16 service award of $5,000.00 each to Plaintiffs Dominique Parrish, Ludwig 17 Combrinck, and Trine E. Utne for their efforts as Settlement Class Representatives 18 on behalf of the Settlement Class, said service award to be paid by Defendant in the 19 time and manner provided in the Settlement Agreement. Said payment shall 20 constitute full and complete satisfaction of, and shall duly, completely, and forever 21 satisfy, release, and discharge any and all obligations of Defendant and all Released 22 Parties from, and with respect to, Settlement Class Representative service awards. 23 In addition, the Court has carefully reviewed, and approves, Class Counsel’s 24 request for an award of reasonable attorneys’ fees, costs and expenses in the 25 collective combined total amount of $900,000.00 (collectively, “Class Counsel 26 Fees and Expenses”), 90% of which amount shall be paid by Defendant 27 within the time, and in the manner, set forth in the Settlement Agreement. 28 The remaining 10% shall be paid when Class Counsel provides a declaration 8 Case 8: 19-cv-01148-DSF-KES Document 100 Filed 03/02/23 Page 10 of 13 Page ID #:3943

1 stating that all other terms of the settlement have been implemented, as well as a 2 proposed order releasing the remainder of the fees award. 3 24. The Court finds said Class Counsel Fees and Expenses to be reasonable 4 and consistent with applicable law. The payment by Defendant of said Class Counsel 5 Fees and Expenses shall constitute full and complete satisfaction of, and shall duly, 6 completely, and forever release and discharge the Defendant and all Released Parties 7 from, and with respect to, any and all obligations for the payment of attorney fees, 8 costs, and expenses in connection with this Action and controversy. 9 25. Without further order of the Court, the Parties may agree to reasonably 10 necessary extensions of time to carry out any of the provisions of the Settlement 11 Agreement, this Order, and any obligations thereunder. 12 26. Plaintiffs and each and every Settlement Class Member (other than 13 those specifically listed in Exhibit A), are permanently barred and enjoined from 14 commencing or prosecuting any action, suit, proceeding, claim, or cause of action 15 asserting any of the Released Claims in any court or before any tribunal. This 16 permanent bar and injunction is necessary to protect and effectuate the Settlement 17 Agreement, this Final Approval Order and Judgment, and this Court’s authority to 18 enforce and effectuate the Settlement Agreement and is ordered in aid of this Court’s 19 jurisdiction and to protect its judgments. However, this provision will not bar any 20 communications with, or compliance with any legal requests or inquiries from, any 21 governmental authorities. 22 27. All Class Members who have not objected to the Settlement within the 23 time and in the manner set forth in the Preliminary Approval Order and Class Notice 24 have forever waived any right to object to, and any objection to, the Settlement or 25 any aspect or provision thereof, whether by appeal, collateral attack, or otherwise. 26 28. Without affecting the finality of the Final Approval Order and 27 Judgment thereon in any away, the Court retains continuing and exclusive 28 jurisdiction over the Parties, including all Class Members, to enforce the terms of 9 Case §:19-cv-01148-DSF-KES Document 100 Filed 03/02/23 Page 11of13 Page ID #:3944

1 ||the Final Approval Order and Judgment, and shall have continuing jurisdiction over 2 ||the construction, interpretation, implementation, and enforcement of the Settlement 3 || Agreement. 4 29. The Court finds that no just reason exists for delay in entering the Final 5 || Judgment. 6 IT IS SO ORDERED. 7 || DATED: March 2, 2023 / ( | Qo. SJ fe 8 Honorable Dale $. F ether nos 9 UNITED STATES DISTRICT JUDGE 10 1] 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 10

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