Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_05-cv-02229/USCOURTS-casd-3_05-cv-02229-2/pdf.json

Nature of Suit Code: 290
Nature of Suit: Other Real Property Actions
Cause of Action: 28:1332 Diversity-Other Contract

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[PROPOSED] ORDER GRANTING PRELIMINARY APPROVAL MOTION

UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF CALIFORNIA

KIM KOCH, et al., On Behalf of

Themselves and All Others Similarly

Situated

Plaintiffs,

vs.

GATEWAY INC., 

Defendant.

_______________________________

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Case No. 05CV2229 JLS (AJB)

ORDER GRANTING 

PLAINTIFFS’ NOTICE OF MOTION

AND MOTION FOR ORDER (1)

APPOINTING KIM KOCH, MALIK

AKRAM, KHOLA HERBERT,

WILLIAM GOOSELY, SHERYL

DEMARCO GREOGRIOUS, JAMEL

PERKINS, JULIE LENZ, AND DUSTY

K. BROWER AS CLASS

REPRESENTATIVES;(2)

GRANTING PRELIMINARY

APPROVAL TO PROPOSED CLASS

ACTION SETTLEMENT; (3)

PROVISIONALLY CERTIFYING

SETTLEMENT CLASS; (4)

DIRECTING DISSEMINATION OF

NOTICE AND CLAIM FORM TO

THE CLASS; AND, (5) SETTING

SCHEDULE FOR THE FINAL

APPROVAL PROCESS; AND, (6)

APPOINTING HANDAL &

ASSOCIATES AS CLASS COUNSEL

Case 3:05-cv-02229-AJB Document 165 Filed 06/23/08 Page 1 of 8
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[PROPOSED] ORDER GRANTING PRELIMINARY APPROVAL MOTION

ORDER

Having reviewed Plaintiffs’ Motion for an Order (1) Appointing Plaintiffs as Class

Representatives; (2) Granting Preliminary Approval to Proposed Class Action Settlement; (3)

Provisionally Certifying Settlement Class Action; (4) Directing Dissemination of Notice and

Claim Form to the Class; (5) Setting a Schedule for Final Approval; and (6) Appointing Handal

& Associates As Class Counsel (the “Preliminary Approval Motion”), and the Joint Stipulation

of Class Settlement Between Plaintiffs and Defendant; Settlement Agreement and Release

(“Settlement Agreement”) (attached hereto as Exhibit A), along with the files and records of

this case, the Court now FINDS, CONCLUDES, and ORDERS as follows: 

CERTIFICATION OF SETTLEMENT CLASS ACTION

For settlement purposes, the Parties have proposed conditional certification of the

following settlement classes under Federal Rule of Civil Procedure 23 (the “Rule 23 Class”): 

The Court hereby FINDS and CONCLUDES that the Rule 23 Classes satisfy all of the

requirements for certification under Rule 23(a) and Rule 23(b)(3). Each class is sufficiently

numerous (over 100 persons) that joinder is impracticable. The members of the Rule 23 Classes

share common issues of fact and law regarding 

The named Plaintiffs’ claims are typical of those of the classes they represent, since they

arise out of the same policies and practices and course of conduct complained of by all class

members. The named Plaintiffs are adequate representatives of the classes they represent, since

their interests are co-extensive with those of class members, and they have retained experienced

counsel to represent them. Questions of law or fact common to the classes predominate over

individualized issues, and a class action is superior to other available methods for the fair and

efficient adjudication of the controversy. Because certification of the Rule 23 Classes is

proposed in the context of a settlement, the Court need not inquire whether the case, if tried as a

class action, would present intractable management problems. 

Accordingly, the Court hereby CERTIFIES the Rule 23 Classes under Rule 23(a) and

Rule 23(b)(3). 

Case 3:05-cv-02229-AJB Document 165 Filed 06/23/08 Page 2 of 8
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[PROPOSED] ORDER GRANTING PRELIMINARY APPROVAL MOTION

APPOINTMENT OF CLASS REPRESENTATIVES AND CLASS COUNSEL

The Court finds that Class Representatives have claims typical of absent class members

and are adequate representatives of those class members. 

The Court appoints the named Plaintiffs to serve as Class Representatives of their

respective Rule 23 Class. The Court finds that Handal & Associates has extensive experience

and expertise in prosecuting consumer class action cases and civil litigation. The Court

appoints Handal & Associates as Class Counsel for the Rule 23 Class Action. 

PRELIMINARY APPROVAL OF PROPOSED SETTLEMENT

The Court has reviewed the terms of the Settlement Agreement, including the monetary

relief provisions, the plan of allocation and the release of claims, and the Plaintiffs’ description

of the settlement in the Motion papers. The Court has also read and considered the declaration

of Anton N. Handal in support of preliminary approval. Based on review of those papers, and

the Court’s familiarity with this case, the Court concludes that the proposed settlement is the

result of extensive, arms’-length negotiations between the Parties after Class Counsel had

investigated the claims and become familiar with the strengths and weaknesses of Plaintiffs’

case. The assistance of an experienced mediator in the settlement process confirms that the

settlement is non-collusive. 

Based on all of these factors, the Court concludes that the proposed settlement has no

obvious defects and is within the range of possible settlement approval, such that notice to the

Class is appropriate. 

IT IS THEREFORE ORDERED THAT: 

1 The proposed settlement is hereby PRELIMINARILY APPROVED.

Final approval is subject to the hearing of any objections of members of

the settlement classes to the proposed settlement. 

2 Pending the determination of the fairness of the proposed settlement, all

further litigation of this action is hereby STAYED. 

Case 3:05-cv-02229-AJB Document 165 Filed 06/23/08 Page 3 of 8
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[PROPOSED] ORDER GRANTING PRELIMINARY APPROVAL MOTION

APPROVAL OF THE FORM AND MANNER OF DISTRIBUTING NOTICE AND CLAIM

FORM

The proposed Notice is the best notice practical under the circumstances and allows

Class Members a full and fair opportunity to consider the proposed Settlement. The proposed

plan for distributing the Notice and Claim Form likewise is a reasonable method calculated to

reach all individuals who would be bound by the settlement. Under this plan, the Claims

Administrator will distribute the Notice and Claim Form to all members of the Rule 23 Class

(collectively, “Class Members”) by First Class United States Mail to their last known

addresses. There is no additional method of distribution that would be reasonably likely to

notify Class Members who may not receive notice pursuant to the proposed distribution plan. 

The Notice fairly, plainly, accurately, and reasonably informs Class Members of: (1)

appropriate information about the nature of this litigation, the settlement classes, the identity of

Class Counsel, and the essential terms of the settlement, including the monetary and injunctive

relief and the plan of allocation; (2) appropriate information about Class Counsel’s forthcoming

application for attorneys’ fees and the proposed service payments to Class Representatives; (3)

appropriate information about how to participate in the settlement; (4) appropriate information

about this Court’s procedures for final approval of the settlement, and about class members’

right to appear through counsel if they desire; (5) appropriate information about how to

challenge or opt-out of the settlement, if they wish to do so; and (6) appropriate instructions as

to how to obtain additional information regarding this litigation and the settlement. 

Similarly, the proposed Claim Form allows eligible claimants a full and fair opportunity

to submit a claim for proceeds in connection with the settlement. The Claim Form fairly,

accurately, and reasonably informs potential claimants that failure to complete and submit a

Claim Form, in the manner and time specified, shall constitute a waiver of any right to obtain

any share of the settlement fund. 

The Court FINDS and CONCLUDES that the proposed plan for distributing the Notice

and Claim Form (“Notice Materials”) will provide the best notice practicable, satisfies the

Case 3:05-cv-02229-AJB Document 165 Filed 06/23/08 Page 4 of 8
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[PROPOSED] ORDER GRANTING PRELIMINARY APPROVAL MOTION

notice requirements of Rule 23(e), and satisfies all other legal and due process requirements.

Accordingly, the Court hereby ORDERS as follows:

A. The manner of distributing the Notice Materials is approved. 

B. Promptly following the entry of this Order, the Claims Administrator shall

prepare final versions of the Notice Materials, incorporating into the Notice the relevant dates

and deadlines set forth in this Order. 

C. Class Counsel shall provide the Court, at least five (5) days prior to the fairness

hearing, a declaration from the Claims Administrator of due diligence and proof of mailing with

regard to the mailing of the Notice. 

D. The Claims Administrator shall take all other actions in furtherance of claims

administration as are specified in the Settlement Agreement. 

PROCEDURES FOR FINAL APPROVAL OF THE SETTLEMENT

1 Fairness Hearing 

The Court hereby schedules a hearing to determine whether to grant final certification of

the Rule 23 Class and final approval of the Settlement Agreement (including the monetary

relief, proposed plan of allocation, payment of attorneys’ fees and costs, and service payments

to the Class Representatives) (the “Fairness Hearing”) for October 31, 2008, at 9:00 a.m.. 

2 Deadline to Request Exclusion from the Settlement 

Class Members may exclude themselves from, or opt-out of, the settlement. Any request

for exclusion must be in the form of a written “opt-out” statement sent to the Claims

Administrator. A person wishing to opt-out must sign a statement that includes the following

language: 

I understand that I am requesting to be excluded from the class

monetary Settlement and that I will receive no money from the

Settlement Fund created by the Settlement. I understand that if I

am excluded from the class, I may bring a separate legal action

seeking damages, but might recover nothing or less than what I

would have recovered if I filed a claim under the class monetary

provisions in this case. 

Case 3:05-cv-02229-AJB Document 165 Filed 06/23/08 Page 5 of 8
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[PROPOSED] ORDER GRANTING PRELIMINARY APPROVAL MOTION

To be effective, any opt-out statement must be sent to the Claims Administrator via First

Class United States Mail, facsimile, or the equivalent, postmarked no later than thirty (30) days

after the Claims Administrator first mails the Notice to Class Members. Only those Class

Members who request exclusion in the time and manner set forth herein shall be excluded from

the settlement. Pursuant to Federal Rules of Civil Procedure 23(b)(3) and (c)(2), the terms and

provisions of the settlement shall have no binding effect on any person who makes a timely

request for exclusion in the manner required by this Order. 

The Claims Administrator shall date stamp the original of any opt-out statement and

serve copies on both Class Counsel and counsel for Gateway via facsimile and overnight

delivery within five (5) business days of receipt of such statements. Class Counsel shall file

copies of all timely requests for exclusion, not timely rescinded, with the Court prior to the

Fairness Hearing. 

3 Deadline for Filing Objections to Settlement 

Any Class Member who wishes to object to the fairness, reasonableness or adequacy of

the Settlement Agreement or the settlement must do so in writing. Class Members who have

timely objected to the settlement in writing may also appear at the Fairness Hearing. To be

considered, any objection to the final approval of the Settlement Agreement must state the basis

for the objection and be mailed to the Clerk of the Court, Class Counsel, and Counsel for

Gateway, at the addresses provided in the Notice, via First Class United States Mail, postage

prepaid, postmarked no later than thirty (30) days after the date that Notice is first mailed by the

Claims Administrator. Any Class Member who does not timely file and serve such a written

objection shall not be permitted to raise such objection, except for good cause shown, and any

Class Member who fails to object in the manner prescribed herein shall be deemed to have

waived, and shall be foreclosed from raising, any such objection. 

If objections are filed, Class Counsel or counsel for Gateway may engage in discovery

concerning the filed objections prior to the Fairness Hearing. 

Case 3:05-cv-02229-AJB Document 165 Filed 06/23/08 Page 6 of 8
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[PROPOSED] ORDER GRANTING PRELIMINARY APPROVAL MOTION

4 Deadline for Submitting Claims Forms 

A Class Member who does not opt-out will be eligible to receive his or her

proportionate share of the settlement fund. To receive this share, such a Class Member must

properly and timely complete a Claim Form in accordance with the terms of the Settlement

Agreement. To be effective, the Claim Form must be sent to the Claims Administrator at the

address provided in the Notice postmarked no later than twenty-eight days after the final

approval of the settlement. Failure to postmark a completed Claim Form by the deadline shall

bar the Class Member from receiving any monetary award pursuant to the proposed settlement.

Class Members who do not file timely and valid Claim Forms shall nonetheless be bound by the

judgment and release in this action as set forth in the proposed Settlement Agreement, unless

that Class Member timely opts out of the settlement. 

It shall be the sole responsibility of each Class Member who seeks a monetary award to

notify the Claims Administrator if the Class Member changes his or her address. Failure of a

Class Member to keep the Claims Administrator apprised of his or her address may result in the

claim being denied or forfeited. 

5 Deadline for Submitting Motion Seeking Final Approval 

No later than thirty (30) days before the Fairness Hearing, Plaintiffs shall file a Motion

for Final Approval of the Settlement. On or before one week before the Fairness Hearing, the

Parties may file with the Court a reply brief responding to any filed objections. 

6 Deadline for Petition for Attorneys’ Fees 

Class Counsel shall file with this Court their petition for an award of attorneys’ fees and

reimbursement of expenses no later than thirty (30) days before the Fairness Hearing. Class

Counsel may file a reply to any opposition memorandum filed by any objector no later than one

week before the Fairness Hearing. 

Case 3:05-cv-02229-AJB Document 165 Filed 06/23/08 Page 7 of 8
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[PROPOSED] ORDER GRANTING PRELIMINARY APPROVAL MOTION

7 Deadline for Petition for Approval of Service Payments 

Class Counsel shall file with this Court their petition for an award of service payments

to the Class Representatives no later than thirty (30)days before the Fairness Hearing. Class

Counsel may file a reply to any opposition memorandum filed by an objector no later than one

week before the Fairness Hearing. 

PLAINTIFFS’ AND CLASS MEMBERS’ RELEASE

If, at the Fairness Hearing, this Court grants final approval to the settlement, named

Plaintiffs and each individual member of the Rule 23 Class Action who does not timely opt-out

will release claims, as set forth in Settlement Agreement and Claim Form, by operation of this

Court’s entry of the Judgment and Final Approval, regardless of whether he or she submits a

Claim Form or receives any share of the settlement fund. 

APPOINTMENT OF CLAIMS ADMINISTRATOR

EPIQ Systems is hereby appointed Claims Administrator to carry out the duties set forth

in this Order and the Settlement Agreement. 

DATED: June 23, 2008

Hon. Anthony J. Battaglia

U.S. Magistrate Judge

United States District Court

IT IS SO ORDERED. 

Case 3:05-cv-02229-AJB Document 165 Filed 06/23/08 Page 8 of 8