Exum, Jr. v. National Tire and Battery

District Court, S.D. Florida·Decided April 6, 2020·No. 9:19-cv-80121·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

Bruce Exum, Jr. and Emilie Palmer, Case No. 9:19-cv-80121-WM individually and on behalf of all others similarly situated, ORDER APPROVING CLASS SETTLEMENT AND GRANTING © Plaintiffs, CERTIFICATION OF SETTLEMENT CL ASS (ree PE = pre □□□□ v. [FILED By \/g-“po.| National Tire and Battery and TBC fF -— APR 06 2020 orporation, pO □ ANGELA E. NOBLE CLERK U.S. DIST. CT. Defendants. Laces OF FLA WEB eed

Based upon the unopposed submissions of counsel, this Court makes the following Findings of Fact and Conclusions of Law, grants preliminary approval of a class-action settlement, and certifies a settlement class under Fed. R. Civ. P. 23(b)(2).

I. Findings of Fact ,

Plaintiffs Bruce Exum, Jr. and Emilie Palmer (“Plaintiffs”) allege in this case that Defendants’ practices in selling tires to Plaintiffs and the putative class members violated 49 C.F.R. § 574.8(a)(1). This regulation, enacted by the National Highway Traffic Safety Administration (“NHTSA”) to implement the federal Motor Vehicle Safety Act (““MVSA”),

requires that independent tire dealers and distributors help ensure that tire purchasers’ contact and tire information is transmitted to the tires’ manufacturers, so that the manufacturers can reach | purchasers in the event of a safety recall. Plaintiffs assert claims for breach of implied warranty of merchantability, unjust enrichment, common-law negligence, negligence per se, and violation of the Magnuson Moss Warranty Act and the Florida Deceptive and Unfair Trade Practices Act.

Relief sought in the Complaint includes an order by the Court certifying the case as a class action, ne among other things, injunctive relief and attorneys’ fees and costs. Plaintiffs’ action began with filing of their Complaint on January 29, 2019. [DE 1]. On May 28, 2019, Defendants filed a motion to dismiss. [DE 30]. On August 13, 2019, Plaintiffs filed a motion for class certification. [DE 49]. The Court ordered the Parties to engage in discovery while Defendants’ motion to dismiss and Plaintiffs’ motion for class certification were awaiting decision. Discovery activities eventually included production by Defendants of nearly 3,000 documents, motion practice on one discovery dispute, and depositions of the two Plaintiffs and of three of Defendants’ current or former employees, including a partial deposition under Fed. R. Civ. P. 30(b)(6). On October 2, 2019, in accordance with the provisions of 28 U.S.C. § 636(c), the Parties consented to the jurisdiction of Magistrate Judge William Matthewman to conduct and try the matter and order an entry of sudgment, [DE 69]. The next day, the district court ordered the matter

. referred to Magistrate Judge Matthewman for all further proceedings. [DE 70]. On October 8, 2019, Magistrate Judge Matthewman issued’a revised scheduling order to govern the case. [DE 75]. On J ne 28, 2020, the district court denied Defendants’ motion to dismiss. The following week, the Parties resumed participation in a private mediation that they had begun in November 2019. On February 7, 2020, the Parties reached a full and final settlement of the dispute. The Court has stayed all pending deadlines while the Parties. worked on finalizing the settlement. See [DE 92].

The proposed settlement defines the class as the ee All persons in the United States and its territories who purchased a tire from Defendants or their subsidiaries during the Class Period for their personal use,

rather than for resale or distribution, where Defendants did not provide them with a registration card, send in a card to the manufacturer for them, or electronically transmit their information to the tire manufacturer within 30 days of purchase. Excluded from this Class are Defendants’ current or former officers, directors, employees, Defendants’ parent entities, or any entity in which Defendants have a controlling interest; counsel for Plaintiffs and Defendants; and the judicial officer to whom this lawsuit is assigned. Il. Conclusions of Law A. Applicable legal standards Rule 23(e) of the Federal Rules of Civil Procedure requires judicial approval of any settlement agreement in a class action. See Fed. R. Civ. P. 23(e). This can involve “a two-step process: preliminary approval and a subsequent fairness hearing.”! In the referenced two-step process, the parties submit the proposed settlement to the court for preliminary approval, along with any proposed notice to the class.” If the court grants preliminary approval, the second step of the process begins: notice is given to the class members of a final fairness hearing, at which time class members and the settling parties may be heard with respect to final court approval.? When notice is not required—a circumstance explained in greater detail below—then it follows that the court can approve the settlement without the preliminary step. The decision whether to-approve a proposed class action is “committed to the sound discretion of the district court.’ In exercising this discretion, district courts are mindful of the “strong judicial policy favoring settlement as well as by the realization that compromise is the

' Smith v. Wm. Wrigley Jr. Co., No. 09-60646-CIV, 2010 WL 2401149, at *2 (S.D. Fla. June 15, 2010) (citing Manual for Complex Litigation (““MCL”)). 2 Id. 3 Id. at *7. 4 See Inre U.S. Oil & Gas Litig., 967 F.2d 489, 493 (11th Cir. 1992).

essence of settlement.” This strong public policy is premised on the fact that complex class-action litigation like the instant case “can occupy a court’s dockets for years on end, depleting the resources of the parties and the taxpayers while rendering meaningful relief increasingly elusive.” See U.S. Oil, 967 F.2d at 493.

Because of the two distinct elements contained in this motion—class certification and approval of a class action settlement—two legal standards apply. Rule 23 of the Federal Rules of Civil Procedure applies to the class-certification motion:

A class may be certified “‘solely for purposes of settlement where a settlement is reached before a litigated determination of the class certification issue.”” Lipuma v. Am. Express Co., 406 F. Supp. 2d 1298, 1314 (S.D. Fla. 2005) (quoting Woodward v, NOR-AM Chem. Co., 1996 WL 1063670 *14 (S.D. Ala. 1996)); see also Borcea v. Carnival Corp., 238 F.R.D. 664, 671 (S.D. Fla. 2006). Whether a class is certified for settlement or for trial, the Court must find that the prerequisites for class certification under Rule 23(a) and (b) of the Federal Rules of Civil Procedure are met.° While the Court’s class-certification analysis “may ‘entail some overlap with the merits. of the plaintiffs underlying claim,’ Rule 23 grants courts no license to engage in free-ranging merits.

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Exum, Jr. v. National Tire and Battery, (S.D. Fla. 2020).

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