Thornburg v. Open Dealer Exchange, LLC

District Court, W.D. Missouri·Decided July 22, 2019·No. 5:17-cv-06056·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF MISSOURI ST. JOSEPH DIVISION

JOHN THORNBURG, ) ) Plaintiff, ) ) vs. ) Case No. 17-06056-CV-SJ-ODS ) OPEN DEALER EXCHANGE, LLC, ) d/b/a 700Credit, ) ) Defendant/Third-Party Plaintiff/ ) Counter-Defendant, ) ) vs. ) ) TRANS UNION, LLC, ) ) Third-Party Defendant/ ) Counter-Plaintiff. )

ORDER AND OPINION (1) GRANTING MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT, (2) GRANTING MOTION FOR INJUNCTIVE RELIEF, (3) GRANTING IN PART AND DENYING IN PART MOTION FOR INCENTIVE AWARD AND ATTORNEYS’ FEES AND COSTS, AND (4) DISMISSING WITH PREJUDICE PLAINTIFF’S CLAIMS AGAINST OPEN DEALER EXCHANGE

Pending are Plaintiff’s Motion for Final Approval of Class Action Settlement (Doc. #136), Plaintiff’s Unopposed Motion for Injunctive Relief (Doc. #137), and Plaintiff’s Unopposed Motion for Incentive Award and Attorneys’ Fees and Costs (Doc. #138). For the following reasons, the Court grants Plaintiff’s Motion for Final Approval of Class Action Settlement, grants Plaintiff’s Unopposed Motion for Injunctive Relief, and grants in part and denies in part Plaintiff’s Unopposed Motion for Incentive Award and Attorneys’ Fees and Costs. On February 6, 2019, the Court entered an order preliminarily approving the class action settlement in this matter (“Preliminary Approval Order”). Doc. #134. The Preliminary Approval Order, inter alia, (i) found the terms of the settlement agreement (“the Agreement”) entered into by Plaintiff John Thornburg and Defendant Open Dealer Exchange LLC (“Open Dealer”) to be fair, reasonable, and adequate to the Settlement Class, subject to further consideration at the Final Approval Hearing; (ii) determined notice to the Settlement Class was unnecessary; and (iii) scheduled a Final Approval Hearing. On June 27, 2019, the Court held the Final Approval Hearing. Counsel for all parties appeared, and provided information and legal arguments related to the pending motions. At the hearing, the Court expressed concerns about Plaintiff’s motion for incentive award and attorneys’ fees and costs, and asked for supplemental briefing on the issues raised by the Court. On July 11, 2019, Plaintiff supplemented his previously filed motion. Doc. #146. The Court has considered the Agreement (Doc. #133-2) as well as the parties’ briefing, supplemental briefing, exhibits, and oral arguments. Having done so, the Court finds and orders as follows: (1) The definitions set forth in the Agreement are incorporated by reference in this Order. (2) The Court has jurisdiction over the subject matter of this lawsuit and personal jurisdiction over all parties in this matter. (3) Plaintiff and Open Dealer entered into the Agreement to settle and resolve Plaintiff’s and class members’ claims against Open Dealer on a nationwide basis. (4) The terms of the Agreement and the settlement provided therein are finally approved as fair, reasonable, and adequate to the Settlement. The consideration provided under the Agreement constitutes reasonable and fair value given in exchange for the release of claims against the Released Parties considering the disputed issues, circumstances, defenses, and the potential risks and likelihood of success of pursuing litigation. The legal and factual posture of this case and the fact that the Settlement was the result of arms’ length negotiations between the parties, including negotiations presided over by Francis X. Neuner, Jr., support these findings. The Court further finds that these facts, combined with the lack of other indicators of collusion and the Court’s observation throughout the litigation, demonstrate there was no collusion, implicit or otherwise, present in reaching the Agreement. (5) The Court finds final certification of the Settlement Class is appropriate under Rule 23(b)(2) of the Federal Rules of Civil Procedure. First, “the party opposing the class has acted…on grounds that apply generally to the class, so that final injunctive relief…is appropriate respecting the class as a whole.” Fed. R. Civ.P. 23(b)(2). Second, no monetary relief is sought by the Settlement Class, and the remedy obtained by the Settlement Class is indivisible because it accrues to all members of the Settlement Class. Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338, 360 (2011) (stating “Rule 23(b)(2) applies only when a single injunction or declaratory judgment would provide relief to each member of the class.”). (6) The Court finally certifies the Settlement Class, which is defined as follows: All consumers in the United States who were the subject of an Open Dealer consumer report issued between April 4, 2015, and the date this Court enters its Final Judgment and Order, and which included the notation “Chg-Off or Repo.” Excluded from the Settlement Class are (a) Open Dealer Exchange, Trans Union LLC, and their employees; (b) the Judge to whom the matter is assigned; and (c) any member of the Judge’s staff or immediate family. (7) Any person who previously settled or released all claims covered by this settlement, or any person who previously was paid or received awards through civil or administrative actions for all claims covered by this settlement, or any person who excludes him/herself from the class shall not be a member of the Settlement Class. (8) With regard to the settlement in this matter, the Court finds the following: a. The putative members of the Settlement Class are so numerous that joinder of all members was impracticable. b. There are questions of law or fact common to the Settlement Class that predominate over questions affecting only individual members of the Settlement Class. c. The Named Plaintiff’s claims are typical of the Settlement Class members’ claims. d. The Named Plaintiff and Plaintiff’s Counsel fairly and adequately represented and protected the interests of the Settlement Class members. e. Certification of the Settlement Class is an appropriate method for the fair and efficient adjudication of the controversies between the Settlement Class Members and Open Dealer. (9) Pursuant to the Agreement, the Class Action Fairness Act of 2005 (“CAFA”), and the Court’s Preliminary Approval Order, Open Dealer mailed Notices of Proposed Settlement to the appropriate federal or state officials as set forth in the Declaration filed by Open Dealer. Doc. #135; Doc. #135-1. (10) The Court finally holds notice to Settlement Class members was unnecessary. According to the United States Supreme Court, Rule 23(b)(2) “provides no opportunity for…class members to opt out, and does not even oblige the District Court to afford them notice of the action.” Dukes, 564 U.S. at 362; see also Berry v. Schulman, 807 F.3d 600, 609 (4th Cir. 2015) (stating, under Rule 23(b)(2), “opt-out rights for class members are deemed unnecessary and are not provided”) (citations omitted). In this case, the settlement only waives the Settlement Class members’ rights to (a) pursue injunctive relief in the future against Open Dealer for its use of the “Chg- Off or Repo” notation, and (b) join a class action in the future against Open Dealer for its use of the “Chg-Off or Repo” notation. See Doc. #133-1, at 19; Doc. #133-2, at 12-13. The settlement does not affect the Settlement Class members’ rights to bring subsequent individual claims for actual and/or statutory damages. Id. (11) The Court finally appoints John Thornburg as the Class Representative of the Settlement Class. (12) Thornburg asks for an incentive award of $15,000.00 to be paid by Open Dealer, which does not object to Thornburg’s request.

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