Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_05-cv-00225/USCOURTS-cand-4_05-cv-00225-13/pdf.json

Nature of Suit Code: 791
Nature of Suit: Employee Retirement Income Security Act (ERISA)
Cause of Action: 29:1131 E.R.I.S.A. Collection of Delinquent Trust Funds

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 C05-00225 CW 

[PROPOSED] ORDER PRELIMINARILY 

APPROVING PROPOSED SETTLEMENT 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

JAMES W. SIMPSON, individually and on 

behalf of all others similarly situated, 

 Plaintiff, 

 vs. 

FIREMAN’S FUND INSURANCE 

COMPANY, 

 Defendant, 

 and 

FIREMAN’S FUND MEDICAL PLAN, 

 

 Nominal Defendant. 

Case No. C05-00225 CW 

ORDER GRANTING 

MOTION FOR PRELIMINARY 

APPROVAL OF CLASS ACTION 

SETTLEMENT AND MODIFYING CLASS 

DEFINITION 

WHEREAS, the motion of the parties for preliminary approval of settlement having been 

filed on December 22, 2006, came under this Court’s consideration; 

WHEREAS, Plaintiff has alleged claims against Defendants for interference with the 

attainment of rights to benefits pursuant to ERISA §§ 502(a)(3) and 510, 29 U.S.C. §§ 1132(a)(3) 

and 1140, arising from the adoption and implementation by defendant Fireman’s Fund Insurance 

Company (“FFIC”) of an amended leave of absence policy (“Amended Leave of Absence 

Policy”) which provides for termination of the employment of permanently disabled employees 

who are unable to return to work with or without reasonable accommodations, and a subsequent 

loss of eligibility to participate in FFIC’s ERISA-covered benefit plans, including its medical, 

dental, and vision care plans. 

WHEREAS, the parties to this action have agreed to modify the definition of the class in 

this action to include: 

All persons who (a), as of July 1, 2004, were employees of FFIC or any of its 

affiliates, participants in the Medical Plan, and subject to the Amended Policy, 

and (b) either (i) are still employed by FFIC or any of its affiliates as of the date 

Case 4:05-cv-00225-CW Document 62 Filed 01/05/07 Page 1 of 6
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C05-00225 CW 

[PROPOSED] ORDER PRELIMINARILY 

APPROVING PROPOSED SETTLEMENT 

of the Preliminary Approval Order or (ii) were discharged on or after July 1, 

2004 upon FFIC’s or an affiliate’s determination that they were unable to return 

to work pursuant to the Amended Policy. Excluded from the Class are any 

officers and directors of FFIC and/or Allianz Group, and any employees who had 

any decision-making or recommending authority relating to the Amended Policy. 

WHEREAS, the Court finds that the above modification of the class definition which was 

approved by this Court on September 27, 2005 is a clarification of the previously approved class 

definition and does not in any way prejudice the Class Members; 

WHEREAS, the Defendants expressly deny the allegations of wrongdoing and violations 

of law alleged in this action, and further deny all liability whatsoever to Plaintiff or to the Class 

Members; 

WHEREAS, Plaintiff and Class Counsel have engaged in extensive discussions and 

negotiations with counsel for Defendants concerning a resolution of the issues raised in this 

action, including three separate one-day mediation sessions, two of which were conducted under 

the auspices of the Hon. Charles Renfrew, a retired Judge of this Court; and 

WHEREAS, the parties have proposed a settlement of the action, the terms of which are 

embodied in the Settlement Agreement attached as Exhibit A to Plaintiff’s Unopposed Motion for 

Preliminary Approval of Class Action Settlement; Memorandum of Points and Authorities in 

Support Thereof (“Settlement Agreement”). 

IT IS HEREBY ORDERED: 

1. To the extent defined in the Settlement Agreement and incorporated herein by 

reference, the terms in this Order shall have the meanings set forth therein. 

2. The modification of the class definition proposed by the Parties is hereby 

approved. For the purposes of settlement, this Class is now defined as the following: 

All persons who (a), as of July 1, 2004, were employees of FFIC or any of its 

affiliates, participants in the Medical Plan, and subject to the Amended Policy, 

and (b) either (i) are still employed by FFIC or any of its affiliates as of the date 

of the Preliminary Approval Order or (ii) were discharged on or after July 1, 

2004 upon FFIC’s or an affiliate’s determination that they were unable to return 

to work pursuant to the Amended Policy. Excluded from the Class are any 

officers and directors of FFIC and/or Allianz Group, and any employees who had 

any decision-making or recommending authority relating to the Amended Policy. 

Case 4:05-cv-00225-CW Document 62 Filed 01/05/07 Page 2 of 6
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C05-00225 CW 

[PROPOSED] ORDER PRELIMINARILY 

APPROVING PROPOSED SETTLEMENT 

3. Subject to the receipt and consideration by the Court of any objections to or 

comments on the Settlement Agreement at the hearing described in Paragraph 8 of this Order, the 

Court finds the Settlement Agreement and all of its terms to be fair, just, equitable, and in the best 

interests of the members of the Class. The Court hereby preliminarily approves the Settlement 

under Rule 23(e) of the Federal Rules of Civil Procedure. 

4. The Notice of Pendency of Class Action and Proposed Settlement; Settlement 

Hearing; Motion for Attorneys’ Fees, and Right to Appear (the “Class Notice”) in substantially 

the form attached as Exhibit A to the Settlement Agreement, is hereby APPROVED. Within ten 

(10) business days of the date the Court enters this Order, the Defendants shall cause the Class 

Notice to be mailed by first-class U.S. mail, postage pre-paid, to the current or last known address 

of each Terminated Employee Class Member and of each Active Employee Class Member for 

whom FFIC has no electronic mailing address on file. Within this same time period, Defendants 

shall also transmit the Class Notice by electronic mail to all Active Employee Class Members for 

whom FFIC has an electronic mailing address on file. In the event that a Class Notice sent by 

mail is returned as undeliverable, FFIC shall make reasonable efforts to obtain a valid address 

within fifteen (15) days of the date of receipt of the return of the Class Notice. Such efforts shall 

include conducting a reasonable search for the correct address at a cost of up to $100 per Class 

Member. FFIC shall pay the cost of conducting such searches. Following each search that results 

in a corrected address, FFIC shall promptly resend the Class Notice to the Class Member at the 

corrected address by first-class U.S. mail, postage prepaid. Class Counsel shall cooperate in good 

faith with the Defendants’ reasonable efforts to obtain valid mailing addresses. The search efforts 

just described must be completed no less than forty-five (45) days before the Settlement Hearing 

date. Defendants shall also send a copy of the Class Notice to any person who mails FFIC a 

written request for one postmarked on or before the 45th day following the entry of this Order, 

provided that the request contains the requesting individual’s full name and Social Security 

number, the name used at the time FFIC terminated that individual’s employment, and the dates 

of that individual’s employment with FFIC. Defendants shall mail such Additional Notice within 

ten (10) days of receiving such a request. 

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C05-00225 CW 

[PROPOSED] ORDER PRELIMINARILY 

APPROVING PROPOSED SETTLEMENT 

5. The Court hereby appoints Berdon LLP to serve as claims administrator of the 

Reimbursement Fund established for the benefit of the Terminated Employee Class Members. 

Defendant FFIC is directed to deposit the monies to fund the Reimbursement Fund in accordance 

with the Settlement Agreement. Class Counsel shall have authority to withdraw monies for the 

payment of taxes as necessary without further approval of the Court and withdraw monies for 

expenses related to administration of the Fund upon approval by the Court. Defendants shall 

cooperate with Class Counsel and the Claims Administrator in providing information necessary to 

distribute monies to Terminated Employee Class Members. 

6. At least thirty (30) days prior to the Settlement Hearing described in Paragraph 8 

of this Order, counsel for Defendants shall serve and file a declaration under penalty of perjury 

evidencing Defendants’ compliance with the provisions of Paragraph 4 of this Order. 

7. The form and manner of delivery of the Class Notice set forth in Paragraph 4 

above are hereby found to provide the best notice practicable under the circumstances, and 

constitute due and sufficient notice, in full compliance with the requirements of Rule 23(3) of the 

Federal Rules of Civil Procedure, the Constitution of the United States, and any other applicable 

law. 

8. Pursuant to Rule 23(e) of the Federal Rules of Civil Procedure, a hearing (the 

“Settlement Hearing”) shall be held before the undersigned at 10:00 a.m. on March 30, 2007, in 

Courtroom 2, United States District Court for the Northern District of California, Ronald V. 

Dellums Federal Building, 1301 Clay Street, Oakland, CA 94612-5217 to determine the fairness, 

reasonableness, and adequacy of the proposed Settlement and whether it should be finally 

approved, and to consider the motion of Class Counsel for attorneys’ fees, costs, and expenses 

and the requested payment to the Named Plaintiff. 

9. Any person or entity wishing to object to the Settlement, or otherwise to be heard 

concerning the Settlement at the Settlement Hearing, must timely send a notice of intent to object 

or appear by first-class mail, postage prepaid, to Class Counsel. To be considered timely, the 

notice must bear a postmark at least twenty-one (21) days prior to the date of the Settlement 

Hearing. Any person or entity who fails to submit such a timely written notice shall be barred 

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C05-00225 CW 

[PROPOSED] ORDER PRELIMINARILY 

APPROVING PROPOSED SETTLEMENT 

from making any statement objecting to the Settlement, including at said hearing, and shall 

forever waive his, her, or its objection, except by special permission of the Court. Class Counsel 

shall file a copy of the complete set of the notices of intent to object or appear with the Court no 

later than fourteen (14) days before the Settlement Hearing. 

10. No later than thirty-five (35) days before the Settlement Hearing, Class Counsel 

shall file with the Court and serve on all parties their motion for attorneys’ fees, costs, and 

expenses, their motion for an incentive award of $5,000 for the Named Plaintiff, and all papers in 

support thereof. 

11. No later than fourteen (14) days before the Settlement Hearing, Class Counsel 

shall file a motion for Final Approval of Settlement and Dismissal of Action. 

12. The Court, having determined that this Litigation may proceed as a non-opt out 

class action under Rules 23(b)(1) and (b)(2), finds that Class Members shall be bound by the 

determination at the Final Approval and Fairness Hearing as to whether the Litigation shall in fact 

so proceed. 

13. Pending the Court’s further review of the Settlement, all proceedings in the 

Litigation, other than proceedings pursuant to the Settlement, shall be stayed, and all Class 

Members shall be enjoined from commencing any other action based upon any of the claims at 

issue in the Litigation. 

14. Jurisdiction is hereby retained over this Litigation and the Parties to the Litigation, 

and each of the Class Members for all matters relating to this Litigation, the Settlement, including 

(without limitation) all matters relating to the administration, interpretation, effectuation, and/or 

enforcement of the Settlement and this Order. The Court expressly reserves its right to continue 

the Settlement Hearing from time to time without further direct notice to the Class. 

15. If the Court fails to approve the Settlement, the Settlement shall be deemed null 

and void and shall have no further force and effect, and neither the Settlement nor the 

negotiations leading to it shall be used or referred to by any person or entity in this or in any other 

action or proceeding for any purpose. The Parties shall then be restored to their respective 

positions in the Litigation as of April 28, 2006. The rights and duties of the Parties shall revert to 

Case 4:05-cv-00225-CW Document 62 Filed 01/05/07 Page 5 of 6
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C05-00225 CW 

[PROPOSED] ORDER PRELIMINARILY 

APPROVING PROPOSED SETTLEMENT 

their status prior to the Settlement, and the Litigation shall continue as if the Settlement had not 

been reached. In such event, any order entered by this Court in accordance with the terms of the 

Settlement shall be treated as vacated, nunc pro tunc. 

IT IS SO ORDERED. 

Dated: January 5, 2007 ____________________________ 

 Claudia Wilken 

 United States District Court Judge 

1-SF/7447115v2

Case 4:05-cv-00225-CW Document 62 Filed 01/05/07 Page 6 of 6