Smith v. Costa Del Mar, Inc.

CourtDistrict Court, M.D. Florida
DecidedSeptember 21, 2021
Docket3:18-cv-01011
StatusUnknown

This text of Smith v. Costa Del Mar, Inc. (Smith v. Costa Del Mar, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Costa Del Mar, Inc., (M.D. Fla. 2021).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA JACKSONVILLE DIVISION

TROY SMITH, individually and on behalf of all others similarly situated, BRENDAN C. HANEY, individually and on behalf of all others similarly situated, and GERALD E. REED, IV, individually and on behalf of all others similarly situated,

Plaintiffs,

v. Case No. 3:18-cv-1011-TJC-JRK

COSTA DEL MAR, INC., a Florida corporation,

Defendant.

ORDER After several years of litigation and extensive negotiation, three class action cases1 against Defendant Costa Del Mar, Inc. have culminated in the settlement that is now before the Court for final approval. Upon review of the materials provided by Class Counsel and objections, the Court must determine whether the settlement is fair, adequate, and reasonable.

1 See Haney v. Costa Del Mar, Inc., No. 16-2017-CA-004794-XXXX-MA (Fla. 4th DCA); Smith v. Costa Del Mar, Inc., No. 3:18-cv-1011-TJC-JRK; Reed v. Costa Del Mar, Inc., No. 6:19-cv-1751-RBD-LRH. I. BACKGROUND A. Settlement Terms

Plaintiffs in the three lawsuits that have been resolved through this consolidated settlement allege that Costa charged unlawful fees and related upcharges for repairs to and purchase of Costa sunglasses.2 (See Doc. 98-1). For the purposes of settlement only and under Federal Rules of Civil Procedure

23(a) and 23(b)(3), the Court certified this litigation as a class action on behalf

2 The first case, Haney v. Costa Del Mar, Inc., Case No. 16-2017-CA- 004794-XXXX-MA, was filed on July 28, 2017 in the Duval County Circuit Court for the Fourth Judicial Circuit of Florida, alleging violations of the Florida Deceptive and Unfair Trade Practices Act (FDUTPA) and breach of warranty under the Magnuson-Moss Warranty Act (MMWA). (Doc. 91 at 8). The claims arose out of Costa’s promise that “if our sunglasses are damaged by accident, normal wear and tear, or misuse, we replace scratched lenses, frames, and other parts for a nominal fee,” when in reality, Haney contended, those fees were larger than nominal. Id. The second case, Reed v. Costa Del Mar, Inc., No. 6:19-cv-1751-RBD-LRH, was filed on April 3, 2019 in this district and was transferred from the Jacksonville Division to the Orlando Division. (Doc. 91 at 9). Reed alleged violations of FDUTPA from Costa’s “nominal fee” language and sought to certify a nationwide class, excluding the Florida citizens accounted for by the Haney action, arguing that Costa’s repair or replacement fees were beyond nominal. Id. Reed concerned only those customers whose sunglasses were repaired, whereas the Haney FDUTPA class involved all Florida consumers who bought Costa sunglasses, regardless of whether the sunglasses were ultimately repaired. Id. The third case, Smith v. Costa Del Mar, Inc., No. 3:18-cv-1011-TJC-JRK, was filed on August 20, 2018 in this Court. Id. at 10. Smith alleged that a “processing fee” for repairs to sunglasses under Costa’s unlimited “Lifetime Warranty” was a violation of MMWA requirements. Id. Smith sought to certify a nationwide class. Id. Extensive litigation had been conducted in all three cases by the time the parties reached a settlement, as discussed in more detail infra. of the following classes: (1) Florida Purchase Class, or all citizens of Florida who purchased Costa plano3 sunglasses from July 28, 2013 to January 31, 2018; (2)

Florida Repair Class, or all citizens of Florida who purchased Costa plano sunglasses before January 1, 2018, and were charged a fee by Costa from July 28, 2012 through the date of the Court’s final Order, to repair or replace their sunglasses damaged by accident, normal wear and tear, or misuse; (3)

Nationwide Repair Class, or all United States citizens, excluding Floridians, who purchased Costa plano sunglasses before January 1, 2018, and were charged a repair fee from April 3, 2015 through the date of the Court’s final Order, to repair or replace their Costa plano sunglasses damaged by accident,

normal wear and tear, or misuse; and (4) Warranty Class, or all United States citizens who purchased non-prescription Costa sunglasses before January 1, 2016, and paid a warranty fee to Costa for repair or replacement of their sunglasses damaged by a manufacturer’s defect from August 20, 2013 through

the date of the Court’s Final Order. (Doc. 102 at 4). Class Counsel estimates that combined, the classes include 2.1 million claims. (Doc. 91 at 6). Costa has agreed to establish a settlement fund of $40 million (Doc. 98-1 at 15). As contemplated by the settlement agreement, the fund is meant to

compensate class members with Costa product vouchers, provide incentive

3 Costa “plano sunglasses” are Costa’s non-prescription, non-promotional sunglasses. (Doc. 98-1 at 2). awards to the three named Plaintiffs, pay Class Counsel for the approved attorneys’ fees, expenses, and costs, cover costs of the notice program and claims

administration, and fulfill a possible cy pres payment. Id. Estimated voucher amounts range from $8.99 to $22.99 per claim, depending on the class to which a claimant belongs. (Doc. 135 at 5). Vouchers are non-personalized, transferrable, stackable, and expire in two years, with Costa covering

associated shipping, handling, processing charges, and sales tax for class members, and vouchers may be redeemed for items on Costa’s website. (Doc. 98-1 at 18, 56; see also Doc. 91 at 6). The settlement also sets forth injunctive relief; Costa has modified its product packaging and marketing materials to

eliminate “nominal fee” and “Lifetime Warranty” language. Id. at 4, 16; see also Doc. 91 at 6–7. Additionally, as part of the agreement, Class Counsel agreed to make, and Costa agreed not to oppose, an application for an attorneys’ fees award of thirty percent of the settlement fund, approximately $12 million. Id.

at 28. The settlement provides that “[a]ny reduction by the Court in the amount of Attorneys’ Fees, Costs, and Expenses to be awarded to Plaintiffs’ Class Counsel shall inure to the benefit of the Class.” Id. at 29. B. Approval Process Procedural History

The Court originally granted preliminary approval to the Amended and Restated Settlement Agreement (Doc. 98-1) on September 3, 2020. (Doc. 102). Before ruling on the motion for preliminary approval (Doc. 91), the Court sua sponte raised the issue of whether the settlement qualified as a coupon settlement under the Class Action Fairness Act (CAFA), 28 U.S.C. § 1712, and

the parties provided additional briefing. (Docs. 97, 99).4 The parties maintained that the settlement is not a coupon settlement and that, therefore, the mandates of CAFA do not apply. Id. Upon review of the parties’ submissions at the preliminary approval stage, the Court was satisfied that the settlement was

not a coupon settlement. (Doc. 102 at 4 n.1). Additionally, the parties submitted a joint statement (Doc. 107) regarding the impact of Johnson v. NPAS Solutions, LLC, 975 F.3d 1244 (11th Cir. 2020) on this case. The Court then changed the deadline for the motion for attorneys’ fees to ensure adequate time for class

members to object to the motion, as required by Johnson. (See Doc. 108). Following preliminary approval, the settlement administrator carried out the notice program. (See Docs. 111-1; 98-1 at 20–23). The settlement administrator sent a summary notice and long-form notice to all class members,

sent CAFA notice to federal and state officials as identified in 28 U.S.C. § 1715(a), and established a website with comprehensive information about the settlement. Id.

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