Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_05-cv-00239/USCOURTS-cand-5_05-cv-00239-15/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 15:1692 Fair Debt Collection Act

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- 1 - ______________________________________________________________________________________________________________________________________________________________________________________________________________________ 

PRELIMINARY APPROVAL ORDER CERTIFYING THE CLASS FOR SETTLEMENT PURPOSES AND APPROVING THE 

CLASS ACTION SETTLEMENT 

Ronald Wilcox 

Attorney at Law 

The Law Office of Ronald Wilcox 

2160 The Alameda, First Floor, Suite F 

San Jose, CA 95126 

Attorney for Plaintiffs 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN JOSE DIVISION 

ELIZABETH TREVINO and YADIRA RIOS, on 

behalf of themselves and all others similarly 

situated, 

 Plaintiffs, 

v. 

ACB AMERICAN, INC., HILCO 

RECEIVABLES, LLC, B. MASTERS and K. 

FRANCIS, 

 Defendants. 

------------------------------------------------------------ SHERYL MCGRADY, on behalf of herself and 

all others similarly situated, 

 Plaintiff, 

v. 

ACB AMERICAN, INC., RANDALL DUNN, 

and DALTON VANN, 

 Defendants. 

Case No.: C05 00239 JF (HRL) 

and 

Case No.: C05-05001 PVT 

[PROPOSED] PRELIMINARY 

APPROVAL ORDER CERTIFYING THE 

CLASS FOR SETTLEMENT PURPOSES 

AND APPROVING THE CLASS ACTION 

SETTLEMENT 

This matter comes before the Court for preliminary approval of the Class Action Settlement 

Agreement (the “Agreement”), dated August 22, 2006. The Court has reviewed the Agreement, the 

Motion for Certification of a Class Pursuant to Settlement and for Preliminary Approval of the Class 

Action Settlement and its Exhibits, and, good cause appearing, 

IT IS HEREBY ORDERED AS FOLLOWS: 

1. Definitions. For the purposes of this Order, the Court adopts by reference the 

definitions set forth in the Definitions section of the Class Action Settlement Agreement (the 

“Agreement”), dated as of August 22, 2006, which is attached to the Motion as Exhibit A. 

Case 5:05-cv-00239-JF Document 97 Filed 10/02/2006 Page 1 of 6

**E-Filed 11/27/06**

Case 5:05-cv-00239-JF Document 101 Filed 11/27/06 Page 1 of 6
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- 2 - ______________________________________________________________________________________________________________________________________________________________________________________________________________________ 

PRELIMINARY APPROVAL ORDER CERTIFYING THE CLASS FOR SETTLEMENT PURPOSES AND APPROVING THE 

CLASS ACTION SETTLEMENT 

2. The Court approves the certification of the class for settlement purposes. The Class is 

defined as follows: 

All persons in California who, according to Defendants’ records, meet one of the 

two criteria: 

(1) (a) were sent a collection letter by ACB in a form materially identical or 

substantially similar to the letters sent to Ms. Trevino or Ms. Rios and 

attached as Exhibits B or D to the Trevino Complaint; (b) between 

January 14, 2004, and March 20, 2006; or 

(2) (a) were sent a collection letter by ACB in a form materially identical or 

substantially similar to the letters sent to Ms. McGrady and attached as 

Exhibits A-E to the McGrady Complaint; (b) between July 1, 2004, and 

March 20, 2006. 

3. Preliminary Approval. The Court preliminarily approves settlement of the Action as set 

forth in the Agreement as being fair, reasonable, and adequate to the Parties. Specifically this Court 

finds that: 

(a) Based on Class Counsel’s analysis, including the review of Defendants’ financial 

documents, settlement of this case for a recovery to the Settlement Class of $34,500.00 

(payable on a pro rata basis to those class members who timely return claim forms), is 

fair and reasonable; 

(b) Payment to the Class Representatives, Elizabeth Trevino, Yadira Rios, and Sheryl 

McGrady, of the following amounts for all damages, statutory and actual, and for their 

role in this litigation, is fair and reasonable: $2,000.00 to Elizabeth Trevino, $2,000.00 

to Yadira Rios, and $2,000.00 to Sheryl McGrady. 

(c) Defendants must pay a separate payment to Settlement Class Counsel of reasonable 

attorneys’ fees and costs. These fees and costs are not taken from any recovery to the 

Class Members. Affidavits in support of these fees and costs based upon the Class 

Counsels’ current hourly rates will be provided to the Court at the final approval 

hearing. 

Case 5:05-cv-00239-JF Document 97 Filed 10/02/2006 Page 2 of 6
 Case 5:05-cv-00239-JF Document 101 Filed 11/27/06 Page 2 of 6
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- 3 - ______________________________________________________________________________________________________________________________________________________________________________________________________________________ 

PRELIMINARY APPROVAL ORDER CERTIFYING THE CLASS FOR SETTLEMENT PURPOSES AND APPROVING THE 

CLASS ACTION SETTLEMENT 

(d) For Settlement Purposes Only: (1) the settlement class is sufficiently numerous such 

that joinder is impracticable, (2) there are questions of law and fact common to the 

settlement class that predominate over any questions affecting only individual members, 

(3) the settlement class representatives have claims typical to the settlement class 

members, (4) the settlement class representatives Trevino, Rios, and McGrady and their 

counsel are adequate representatives for the settlement class, and (5) settlement of this 

action on a class basis is the superior and appropriate method for the fair and efficient 

resolution of this controversy. 

 4. If the above Settlement is not given final approval for any reason or in any way, or the 

Effective Date does not occur, or the class is not certified for settlement purposes, or the Agreement is 

rescinded and terminated, the Parties shall be restored to their respective positions in the Action as of 

March 16, 2006. In such event, the terms and provisions of the Agreement shall have no further force 

and effect with respect to the Parties, shall be deemed to be without prejudice in any way to the 

position of the Parties with respect to this Action or any other action, and shall not be used in the 

Action or in any other proceeding for any purpose, except as provided in the Agreement or herein. 

5. Settlement Hearing. A Settlement Hearing will be held on _____________, 2006, at 

_______ ___.m. at which time the Court will finally determine whether the Settlement of the Action, 

including Class Counsels’ Attorneys’ Fees Application, should be finally approved as fair, reasonable, 

and adequate and whether the Judgment and Order of Dismissal with Prejudice (the “Judgment”) 

should be entered. The Court may adjourn or continue the Settlement Hearing without further notice 

to the Settlement Class. 

6. Form and Content of Notice. The Court approves, as to form and content, for 

distribution and publication to potential members of the Class the Notice in the form attached as 

Exhibit B to the Motion for Preliminary Approval. 

Case 5:05-cv-00239-JF Document 97 Filed 10/02/2006 Page 3 of 6
 Case 5:05-cv-00239-JF Document 101 Filed 11/27/06 Page 3 of 6
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- 4 - ______________________________________________________________________________________________________________________________________________________________________________________________________________________ 

PRELIMINARY APPROVAL ORDER CERTIFYING THE CLASS FOR SETTLEMENT PURPOSES AND APPROVING THE 

CLASS ACTION SETTLEMENT 

7. Mailed Notice. No later than 14 days after the date upon which the Court enters the 

Preliminary Approval Order, Defendants’ counsel must provide to First Class, Inc., who is mutually 

chosen and agreed upon by the Parties, the class list in computerized form, usable without manual 

reentry. No later than 30 days after the date upon which the Court enters the Preliminary Approval 

Order, the Class Administrator shall mail Notice by first class mail to Class Members with Accessible 

Contact Information. Class Counsel shall file with the Court and serve upon Defense Counsel, no later 

than 5 business days prior to the Final Settlement Approval Hearing, an affidavit or declaration (if 

applicable, from First Class, Inc.) stating that the mailings have been completed in accordance with the 

terms of this Preliminary Approval Order. 

8. Best Practicable Notice. The Court finds that dissemination of the Notice in the manner 

described herein constitutes the best notice practicable under the circumstances to potential Class 

Members and complies fully with Federal Rule of Civil Procedure 23, any and all substantive and 

procedural due process rights guaranteed by the United States Constitution, and any other applicable 

law. No further notices to the class members are required. 

9. Requests for Exclusion. Any Person may seek to be excluded from the Settlement. 

Any Person so excluded shall not be bound by the Settlement and shall not be entitled to any of its 

benefits. To be timely, a request for exclusion must be sent to the Settlement Administrator and 

postmarked within 45 days of the mailing of notice, as explained on the Claim Form attached to the 

Class Notice. To be effective, the request for exclusion must make clear that exclusion is sought by 

stating words to the effect of: “I WANT TO BE EXCLUDED FROM THE SETTLEMENT CLASS 

IN TREVINO v. ACB AMERICAN” or “I WANT TO BE EXCLUDED FROM THE SETTLEMENT 

CLASS IN MCGRADY v. ACB AMERICAN,” or by checking off the appropriate box on the claim 

form and mailing a copy to First Class, Inc. The request for exclusion must be signed by that Person 

or, if other than a natural person, by an authorized representative of the Person. First Class, Inc. shall 

Case 5:05-cv-00239-JF Document 97 Filed 10/02/2006 Page 4 of 6
 Case 5:05-cv-00239-JF Document 101 Filed 11/27/06 Page 4 of 6
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- 5 - ______________________________________________________________________________________________________________________________________________________________________________________________________________________ 

PRELIMINARY APPROVAL ORDER CERTIFYING THE CLASS FOR SETTLEMENT PURPOSES AND APPROVING THE 

CLASS ACTION SETTLEMENT 

provide copies of any and all requests for exclusion to Defendants’ Counsel and to Class Counsel no 

later than 5 business days before the Settlement Hearing, at which time Class Counsel shall file and 

serve Notice to the Court of how many people timely and effectively requested exclusion. 

10. Objections. Any Class Member who objects to the Settlement shall have a right to 

appear and be heard at the Settlement Hearing provided that such Person files with the Court and 

delivers to designated Class Counsel and Defendants’ Counsel a written notice of objection identifying 

in writing reasons for his or her objection no later than 14 days before the Settlement Hearing. The 

written objection must be no more than 15 pages. Class Counsel and Defendants’ Counsel may, but 

need not, respond to the objections, if any, by means of a memorandum of law of no more than 15 

pages filed and served no later than 5 business days prior to the Settlement Hearing. Only Class 

Members who have filed and delivered valid and timely written notices of objection will be entitled to 

be heard at the Settlement Hearing, unless the Court orders otherwise. Any Class Member who does 

not make his or her objection in the manner provided shall be deemed to have waived such objection 

and shall forever be foreclosed from making any objection to the fairness, reasonableness, or adequacy 

of the Settlement or the award of Attorneys’ Fees to Class Counsel, unless otherwise ordered by the 

Court. 

11. Defendants’ Denial of Liability. The Court notes that Defendants deny any liability to 

Plaintiffs or to the Class for any matter whatsoever. Without conceding any infirmity in their defenses, 

and while continuing to deny all allegations of liability, Defendants consider it desirable that the 

Action be dismissed and that the claims against Defendants be released, on the terms set forth herein, 

in order to avoid further expense, dispose of burdensome and protracted litigation and put to rest all 

claims which have or could have been asserted against Defendants arising from the acts, transactions, 

or occurrences alleged in the Action. 

Case 5:05-cv-00239-JF Document 97 Filed 10/02/2006 Page 5 of 6
 Case 5:05-cv-00239-JF Document 101 Filed 11/27/06 Page 5 of 6
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- 6 - ______________________________________________________________________________________________________________________________________________________________________________________________________________________ 

PRELIMINARY APPROVAL ORDER CERTIFYING THE CLASS FOR SETTLEMENT PURPOSES AND APPROVING THE 

CLASS ACTION SETTLEMENT 

12. Stay of Discovery and Litigation. All discovery and other proceedings in the Action are 

stayed until further order of the Court, except as may be necessary to implement the Settlement or 

comply with the terms of the Agreement. 

13. Injunction. The Court hereby bars and enjoins all Class Members, except those who 

have timely and effectively requested exclusion, from instituting, or prosecuting any action, or 

proceeding, whether class or individual, against Defendants for liability in any way related to, arising 

out of, or based upon the Released Claims, unless and until the Agreement is terminated. 

14. Extension of Deadlines. The Court may, for good cause, extend any of the deadlines set 

forth in this Order without further notice to the Class. 

15. Deadline for Opt-Outs. To be legally effective, all requests for exclusion described in 

paragraph 9 above must be received within 45 days of the mailing of class notice. 

16. Deadline for Objections. Class Member Objections, as described in paragraph 10 

above, must be delivered to Class Counsel and Defendants’ Counsel and filed with the Court, as 

directed in the Notice, within 45 days of the mailing of class notice. Objections not filed and served in 

a timely manner shall be deemed waived. 

17. Deadline for Submitting Claim Forms. Class members who wish to receive their cash 

recovery in accordance with the Settlement Agreement must send in a claim form, which must be 

received by First Class, Inc., within 45 days of the mailing of class notice. 

SO ORDERED this 27th day of November, 2006. 

Judge Jeremy Fogel 

Case 5:05-cv-00239-JF Document 97 Filed 10/02/2006 Page 6 of 6
 Case 5:05-cv-00239-JF Document 101 Filed 11/27/06 Page 6 of 6