Kinder v. Northwestern Bank

278 F.R.D. 176, 80 Fed. R. Serv. 3d 1421, 2011 U.S. Dist. LEXIS 126677, 2011 WL 5282589
CourtDistrict Court, W.D. Michigan
DecidedNovember 2, 2011
DocketNo. 1:10-cv-405
StatusPublished
Cited by8 cases

This text of 278 F.R.D. 176 (Kinder v. Northwestern Bank) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kinder v. Northwestern Bank, 278 F.R.D. 176, 80 Fed. R. Serv. 3d 1421, 2011 U.S. Dist. LEXIS 126677, 2011 WL 5282589 (W.D. Mich. 2011).

Opinion

OPINION AND ORDER GRANTING IN PART AND REFERRING IN PART JOINT MOTION FOR PRELIMINARY APPROVAL OF CLASS-ACTION SETTLEMENT

PAUL L. MALONEY, Chief Judge.

This matter comes before the Court on a Joint Motion for Preliminary Approval of Class-Action Settlement. (Joint Mot. ECF No. 41.) The parties seek certification of the class for settlement purposes only and preliminary approval of the settlement.1 Plaintiff subsequently filed a motion requesting a hearing on the preliminary approval or, in the alternative, for entry of an order preliminarily approving the proposed settlement. (ECF no. 43.) The Court has had the benefit of hearing from the parties on the issue of class certification, and finds no need for a preliminary fairness hearing for the purpose of certification. As explained below, the proposed class is certified for the purpose of settlement. Because the Court sees need for additional materials, a portion of the motion seeking preliminary approval of the terms and conditions of the settlement will be referred to the magistrate judge for a report and recommendation.

BACKGROUND2

Nancy Kinder (“Plaintiff’) has filed at least twelve lawsuits against banks in Michi[180]*180gan, in both the Eastern and Western Districts, all single count complaints alleging violations of the Electronic Fund Transfer Act. (Def. Resp. Ex. A-PACER Searches.) Plaintiff has also filed a similar lawsuit in the Eastern District of Kentucky. See Kinder v. Central Bank and Trust Co., No. 11-234-JMH, 2011 WL 5039786 (E.D.Ky. Oct. 24, 2011) (opinion and order denying motion for class certification). When Plaintiff sees an ATM that does not display the fee charges on the outside of the machine, she uses that machine to withdraw money from her account. (Def. Resp. Ex. B-Kinder Dep. 26.) If the screen informs her that she will be charged a fee to withdraw money, she accepts the fee and takes a picture of the machine. (Id.) Plaintiff keeps a camera in her ear for various reasons, including taking pictures of ATM machines that do not display fee charges. (Id. 26-27.)

Individuals who do not maintain an account with Northwestern Bank are charged a fee to withdraw cash from one of Northwestern Bank’s ATMs. (Def. Resp. Ex. F-Douglas Zernow Affidavit ¶¶ 3-4.) Prior to commencing any transaction, the screen provides a fee notice informing non-customers, individuals who do not have an account with Northwestern Bank, that they will be charged a fee for any withdrawal. (Id. ¶ 7.) The screen prompts the user to affirmatively accept the fee by pressing a particular button if he or she wishes to continue the transaction. (Zer-now Affidavit ¶¶ 15-6.)

On July 29, 2009, Plaintiff used one of Defendant’s ATM machines in Cadillac, Michigan and another machine in Bay Harbor, Michigan. (Compl. ¶¶ 15(a) and (b)). After Plaintiff used the first Northwestern Bank ATM, she obtained a list of Northwestern Bank’s other ATMs through its website. (Kinder Dep. 40.) She then visited the ATMs to see if the machines displayed fee stickers. (Id. 40-41.) If the machine did not display the fee charge, she would withdraw money from the machine. (Id 41.) The sole reason Plaintiff used the ATMs was to plan for her lawsuit against Defendant. (Id. 23-24.) In total, Plaintiff withdrew money from fifteen (15) of Defendant’s ATMs. In addition to the two withdrawals on July 29, Plaintiff withdrew money from seven ATMs on August 6, 2009 from locations in Houghton Lake, Kalkaska, Acme, Williamsburg, and three in Traverse City. (Compl. ¶¶ 15(c)-(i).) On March 18, 2010, Plaintiff withdrew money from another six machines located in Interlo-chen, Manistee, two in Ludington, and another two in Traverse City. (Compl. ¶¶ 15(j)-(o).) She was charged a fee for each of these fifteen withdrawals. (Compl. ¶¶ 15(a)-(o).)

ELECTRONIC FUND TRANSFER ACT

The Electronic Fund Transfer Act (“EFTA”) was enacted in 1978, Pub.L. No. 95-630, § 2001, 92 Stat. 3641 (1978), which amended the comprehensive Consumer Credit Protection Act. The purpose of the EFTA is to “provide a basic framework establishing the rights, liabilities, and responsibilities of participants in electronic fund and remittance transfer systems” with its “primary objective” as “the provision of individual consumer rights.” 15 U.S.C. § 1693(b) (2009). Included among the protections afforded to individual consumers is the requirement that the operators of ATMs provide notice of the fees charged to consumers.3 Clemmer v. Key Bank Nat’l Ass’n, 539 F.3d 349, 351 (6th Cir.2008). The EFTA requires disclosure of fees imposed by ATMs. 15 U.S.C. § 1693b(d)(3)(A). The fee notice provision states as follows:

(B) Notice requirements
(i) On the machine
The notice required under clause (i) of subparagraph (A) with respect to any fee described in such paragraph shall be posted in a prominent and conspicuous location on or at the automated teller machine at which the electronic fund transfer is initiated by the consumer.
[181]*181(ii) On the screen
The notice required under clauses (i) and (ii) of subparagraph (A) with respect to any fee described in subparagraph shall appear on the screen of the automated teller machine, or on a paper notice issued from such machine, after the transaction is initiated and before the consumer is irrevocably committed to completing the transaction,....

15 U.S.C. § 1693b(d)(3)(B) (2009). The statute prohibits imposition of fees by an ATM when notice is required, but not disclosed in accordance with subparagraph (B). 15 U.S.C. § 1693b(d)(3)(C) (2009).

LEGAL FRAMEWORK — CLASS SETTLEMENT

Class certification is governed by Rule 23 of the Federal Rules of Civil Procedure. “The trial court has broad discretion in deciding whether to certify a class, but that discretion must be exercised within the framework of Rule 23.” In re American Med. Sys., Inc., 75 F.3d 1069, 1079 (6th Cir.1996) (citing Gulf Oil Co. v. Bernard, 452 U.S. 89, 100, 101 S.Ct. 2193, 68 L.Ed.2d 693 (1981)). Before certifying a class, the district court must conduct a “rigorous analysis” to determine whether the prerequisites for Rule 23 have been met. Gen. Tel. Co. v. Falcon, 457 U.S. 147, 161, 102 S.Ct. 2364, 72 L.Ed.2d 740 (1982); Beattie v. CenturyTel, Inc., 511 F.3d 554, 560 (6th Cir.2008) (quoting Falcon); Sprague v. Gen. Motors Corp.,

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Bluebook (online)
278 F.R.D. 176, 80 Fed. R. Serv. 3d 1421, 2011 U.S. Dist. LEXIS 126677, 2011 WL 5282589, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kinder-v-northwestern-bank-miwd-2011.