In re Dun & Bradstreet Credit Services Customer Litigation

130 F.R.D. 366, 16 Fed. R. Serv. 3d 409, 1990 U.S. Dist. LEXIS 3337, 1990 WL 34732
CourtDistrict Court, S.D. Ohio
DecidedFebruary 23, 1990
DocketCiv. A. Nos. C-1-89-026, C-1-89-051, 89-2245, 89-3994, and C-1-89-408
StatusPublished
Cited by54 cases

This text of 130 F.R.D. 366 (In re Dun & Bradstreet Credit Services Customer Litigation) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Dun & Bradstreet Credit Services Customer Litigation, 130 F.R.D. 366, 16 Fed. R. Serv. 3d 409, 1990 U.S. Dist. LEXIS 3337, 1990 WL 34732 (S.D. Ohio 1990).

Opinion

ORDER

HERMAN J. WEBER, District Judge.

This matter is before the Court for determination of settlement approval pursuant [369]*369to Fed.R.Civ.P. 23(e). The Court makes the following findings of fact and conclusions of law:

Background

1. On January 12, 1989, a class action complaint was filed in the action Interbank Leasing Corporation v. Dun & Bradstreet Corp. and Dun & Bradstreet, Inc., Civil Action No. C-1-89-026 (S.D.Ohio). Subsequently, additional class action complaints were filed in this Court and in the Eastern District of Pennsylvania. W.M. Hershman, Inc. v. Dun & Bradstreet Inc. and Dun & Bradstreet Corp., Civil Action No. C-1-89-051 (S.D.Ohio, filed January 23, 1989); LeDamor, Inc. v. Dun & Bradstreet, Civil Action No. 89-2245 (E.D.Pa., filed March 29, 1989); Frank Sussman Co. v. Dun & Bradstreet, Inc., Civil Action No. 89-3994 (E.D.Pa., filed May 19, 1989); Mutual Mfg. & Supply Co. v. Dun & Bradstreet Corp. and Dun & Bradstreet, Inc., Civil Action No. C-1-89-408 (S.D.Ohio, filed June 6, 1989). All of the class action complaints centered upon allegations that Defendants engaged in a nationwide scheme fraudulently to sell credit information to its customers, in violation of federal racketeering laws and the common law. The Hershman action additionally alleged violations of federal antitrust laws. Defendants responded, denying all allegations.

2. Following institution of the suits, all parties engaged in discovery, including the taking of depositions, extensive document production, and transfer of Dun & Bradstreet computer database information.

3. Defendants filed motions to dismiss the complaints in all but the Mutual action, where a motion would have been filed if the time period for response had not been extended. Defendants also opposed class certification motions in the Interbank, Hershman and LeDamor actions. The pleadings and other proceedings in these actions have revealed the existence of sharply contested issues of fact and law, including issues as to whether: (a) any class could be certified; (b) plaintiffs could establish the liability of Defendants; and (c) plaintiffs have sustained any recoverable damages.

4. From April to August, 1989, the parties engaged in settlement discussions. On August 9,1989, the parties entered into the proposed settlement agreement which has led to the present proceeding.

5. On August 9,1989, the Court preliminarily approved the proposed settlement, certifying for the limited purpose of the Stipulation of Settlement a class consisting of the following:

All proprietorships, firms, corporations and other entities who purchased one or more regular or special domestic contracts in excess of 100 Regular Units in any contract year from Dun & Bradstreet, Inc. for credit reporting services (also known as “business information services”) commencing from January 1, 1983 through June 30,1988 (“the Class”).

On August 23, 1989, the Court entered an order consolidating for the purposes of settlement the five federal actions, under the consolidated caption “In Re Dun & Bradstreet Credit Services Customer Litigation.” On February 5, 1990, plaintiffs filed a “Second Consolidated Amended Complaint.” On February 13, 1990, Defendant filed an Answer to the Second Consolidated Amended Complaint denying the material allegations and interposing a number of defenses to the claims asserted.

Requirements For Class Action Settlement

6. In order to settle a class action lawsuit, court approval is required, pursuant to Fed.R.Civ.P. 23(e). Rule 23(e) provides:

Dismissal or Compromise. A class action shall not be dismissed or compromised without the approval of the court, and notice of the proposed dismissal or compromise shall be given to all members of the class in such manner as the court directs.

7. There are three steps that must be taken by the court: 1) the court must preliminarily approve the proposed settlement; 2) members of the class must then be given notice of the proposed settlement; 3) a hearing must be held, after which the [370]*370Court must decide whether the proposed settlement is fair, reasonable and adequate. Williams v. Vukovich, 720 F.2d 909 (6th Cir.1983); Stotts v. Memphis Fire Department, 679 F.2d 541 (6th Cir.1982), reversed on other grounds, sub nom Firefighters Local Union No. 1784 v. Stotts, et al., 467 U.S. 561, 104 S.Ct. 2576, 81 L.Ed.2d 483; Bronson v. Board of Education of the City School District of the City of Cincinnati, 604 F.Supp. 68 (S.D.Ohio 1984); Thompson v. Midwest Foundation Independent Physicians Ass’n, 124 F.R.D. 154 (S.D.Ohio 1988).

Preliminary Approval

8. Preliminary approval of a proposed settlement is based upon the court’s familiarity with the issues and evidence, as well as the arms-length nature of the negotiations prior to the proposed settlement, ensuring that the proposed settlement is not illegal or collusive. Bronson, 604 F.Supp. at 71; Stotts, 679 F.2d at 551; United States v. City of Miami, 614 F.2d 1322, 1330-31 (5th Cir.1980), modified on reh’g, 664 F.2d 435 (5th Cir.1981). Once the court has given preliminary approval, an agreement is presumptively reasonable, and an individual who objects has a heavy burden of demonstrating that the decree is unreasonable? Vukovich, 720 F.2d at 921; Bronson, 604 F.Supp. at 71; Stotts, 679 F.2d at 551; Miami, 614 F.2d at 1333.

9. On August 9, 1989, after a hearing was held, this Court preliminarily approved the proposed settlement agreement. This Court based its preliminary approval on its familiarity with the problems and issues presented in these cases, and the character of the negotiations. This Court concluded that the proposed settlement agreement was neither illegal nor collusive, and that it was the product of arms-length negotiations.

Notice Of The Proposed Settlement

10. Notice to the members of the class, both of proposed settlement and that a hearing would be held to determine whether the settlement was fair, adequate and reasonable, is required. Vukovich, 720 F.2d at 921; Bronson, 604 F.Supp. at 71; Stotts, 679 F.2d at 551.

11. Contemporaneous with its preliminary approval of the proposed settlement, this Court approved the form of notice proposed by the parties, and ordered that on or before September 30, 1989, the approved form of notice be sent by Defendants to each class member, at the class member’s last known business address appearing in Dun & Bradstreet Credit Services' computerized customer records. In addition, provision was made for notice by two separate publications in the Wall Street Journal, to take place by October 20, 1989.

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Cite This Page — Counsel Stack

Bluebook (online)
130 F.R.D. 366, 16 Fed. R. Serv. 3d 409, 1990 U.S. Dist. LEXIS 3337, 1990 WL 34732, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-dun-bradstreet-credit-services-customer-litigation-ohsd-1990.