Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_14-cv-02349/USCOURTS-cand-3_14-cv-02349-9/pdf.json

Nature of Suit Code: 385
Nature of Suit: Property Damage - Product Liability
Cause of Action: 28:1332 Diversity-Product Liability

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United States District Court 

Northern District of Californi

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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

DIGBY ADLER GROUP, LLC, et al.,

Plaintiffs, 

v. 

MERCEDES-BENZ U.S.A., LLC, 

Defendant. 

Case No. 14-cv-02349-TEH 

ORDER GRANTING 

PRELIMINARY APPROVAL OF 

CLASS ACTION SETTLEMENT, 

VACATING PRELIMINARY 

APPROVAL HEARING, AND 

SETTING FAIRNESS HEARING

Plaintiff moved this Court for an Order preliminarily approving the parties’ 

settlement, certifying a settlement class, appointing settlement class counsel, setting a 

hearing on the final approval of the settlement, and directing notice to the class (the 

“Motion”). Mercedes-Benz USA, LLC (“MBUSA”) joined in Plaintiff’s request for an 

order preliminarily approving the parties’ settlement. Upon considering the Motion, the 

parties’ Class Action Settlement Agreement and Release and all exhibits thereto 

(collectively, the “Settlement Agreement” or “Settlement”), the materials previously 

submitted in this case, the arguments of counsel, and other materials relevant to this 

matter, it is hereby ORDERED that: 

1. The Court grants preliminary approval of the Settlement based upon the 

terms set forth in the Settlement Agreement filed herewith. 

2. The terms of the Settlement Agreement are sufficiently fair, reasonable, and 

adequate to allow dissemination of the Notice according to the Notice Plan.1

 This 

determination is not a final finding that the Settlement Agreement is fair, reasonable, and 

adequate, but instead is a determination that there is good cause to submit the proposed 

Settlement Agreement to Settlement Class Members and to hold a hearing concerning final 

approval of the proposed settlement, and ultimately approve the settlement. 

 

1

 To the extent capitalized terms are not defined in this Order, they shall have the 

meaning set forth in the Settlement Agreement. 

Case 3:14-cv-02349-TEH Document 68 Filed 03/01/16 Page 1 of 7
United States District Court 

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3. The Parties have made a sufficient showing, under the provisions of Rule 23 

of the Federal Rules of Civil Procedure, as applicable in the context of settlement classes, 

to establish reasonable cause, following Notice to members of the proposed Settlement 

Class, to hold a hearing to determine if a Class should be certified for settlement purposes 

only, consisting of persons who meet the following criteria: 

All current and former owners and lessees of model year 2010-

2014 Mercedes-Benz and Freightliner Sprinter 2500 or 3500 

vehicles with original-equipment rear air conditioning units 

who purchased or leased their Subject Vehicles in the United 

States. 

Excluded from the Settlement Class are: Persons who validly 

and timely exclude themselves; persons who have settled with, 

released, or otherwise had claims adjudicated on the merits 

against MBUSA that are substantially similar to those alleged 

in this matter; persons with only personal injury, wrongful 

death or property damage claims to property other than the 

Subject Vehicles, fixtures installed in the vehicles, or cargo 

transported in the vehicles, as a result of the defects alleged; 

employees of MBUSA; insurers or other providers of extended 

service contracts or warranties for the vehicles owned by 

settlement class members; and the Honorable Thelton E. 

Henderson and members of his family. 

If, for any reason, the proposed settlement is not approved, any order certifying a 

settlement class shall be vacated nunc pro tunc and the Litigation shall proceed as though 

the Settlement Class had never been certified, without prejudice to the Parties’ rights to 

either request or oppose class certification for purposes of litigation. 

4. In making the findings set forth in Paragraph 3, the Court has exercised its 

discretion in conditionally certifying the Settlement Class on a nationwide basis. Named 

Plaintiff Benjamin Robles is designated as the Class Representative. 

5. The Court hereby appoints the following attorneys as counsel for the 

Settlement Class: Jonathan E. Gertler, Dan L. Gildor, and Samuel P. Cheadle of Chavez & 

Gertler LLP, and Anthony L. Label and Steven A. Kronenberg of The Veen Firm, P.C., 

and the successors of these law firms (collectively, “Class Counsel”). For purposes of 

these settlement proceedings, the Court finds that the Chavez & Gertler LLP and The Veen 

Firm, P.C., are competent and capable of exercising their responsibility as Class Counsel. 

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6. This Court has both subject matter jurisdiction and personal jurisdiction as to 

this action and all Parties before it. 

7. The Settlement Agreement is for settlement purposes only. Neither the fact 

of, any provision contained in, nor any action taken under the Settlement Agreement shall 

be construed as an admission of the validity of any claim or any factual allegation that was 

or could have been made by Plaintiff and Settlement Class Members in the Action, or of 

any wrongdoing, fault, violation of law, or liability of any kind on the part of Defendant or 

the Released Persons. The Settlement Agreement shall not be offered or be admissible in 

evidence by or against Defendant or the Released Persons or cited or referred to in any 

other action or proceeding, except one (1) brought by or against the Parties to enforce or 

otherwise implement the terms of the Settlement Agreement, (2) involving any Plaintiff or 

Settlement Class Member to support a defense of res judicata, collateral estoppel, release, 

or other theory of claim preclusion, issue preclusion, or similar defense, or (3) involving an 

attempt to enforce a stay of other litigation pursuant to the terms set forth in the Settlement 

Agreement and the Court’s Order preliminarily approving the Settlement Agreement. 

8. The Notice and provisions for disseminating notice substantially as described 

in and attached to the Settlement Agreement are hereby approved. The Court approves the 

Notice attached as Exhibit A to the Settlement Agreement, as well as the Claim Form, 

attached as Exhibit B to the Settlement Agreement. These materials (a) provide the best 

practicable notice, (b) are reasonably calculated, under the circumstances, to apprise 

Settlement Class Members of the pendency of the action, the terms of the proposed 

settlement, and of their right to appear, object to, or exclude themselves from the proposed 

settlement, (c) are reasonable and constitute due, adequate, and sufficient notice to all 

persons entitled to receive notice, and (d) fully comply with federal law, the United States 

Constitution, and all other applicable laws. 

9. KCC Class Action Services, LLC (“KCC”), selected pursuant to the terms of 

the Settlement Agreement, shall be responsible for providing notice of the proposed 

settlement to the Settlement Class Members in accordance with the provisions of the 

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Settlement Agreement and as directed under the Class Action Fairness Act (28 U.S.C. § 

1715). MBUSA will pay KCC’s fees and costs. 

10. To comply with their obligations under the Settlement Agreement, the 

parties must obtain vehicle registration information for Settlement Class Members for the 

purpose of disseminating notice of the proposed settlement to those persons and entities. 

MBUSA and KCC are hereby authorized to obtain vehicle registration information 

concerning Settlement Class Members from R. L. Polk or a similar vendor for the sole 

purpose of providing notice to those persons and entities. 

11. KCC shall mail the Notice to the identified Settlement Class Members per 

the Notice Plan within sixty (60) days of the entry of this Order. On the same date, KCC 

will make an informational settlement website available to the public, which website will 

include a copy of this order, the Notice, the Settlement Agreement, the Claim Form, and 

other important documents. Within fifteen (15) days after the deadline to mail the Notice, 

KCC shall file a declaration with the Court, attesting to the measures undertaken to 

provide Notice to the Settlement Class and as directed by CAFA. 

12. Anyone who wishes to be excluded from the Settlement Class must submit a 

written request for exclusion (as described in the Notice and Settlement Agreement) by 

sending it to KCC Class Action Services, LLC, by First-Class U.S. mail to the address 

provided in the Notice. Requests for exclusion must contain all information described in 

the Settlement Agreement. The envelope containing the Request for Exclusion must be 

postmarked on or before the date set forth in the Notice, which shall be forty-five (45) days 

after the completion of mailing (or re-mailing, in the case of Notices returned 

undeliverable) of the Notice pursuant to the Settlement Agreement. The Court shall rule 

on the validity of exclusions at the Fairness Hearing. 

13. Anyone who falls within the Settlement Class definition and does not submit 

a Request for Exclusion in complete accordance with the deadlines and other specifications 

set forth in this Order and the Settlement Agreement shall remain a Settlement Class 

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Member and shall be bound by all proceedings, orders, and judgments of this Court 

pertaining to the Settlement Class. 

14. Any Settlement Class Member who wishes to object to the proposed 

Settlement must send or file an objection with this Court. Objections must contain all 

information described in the Settlement Agreement. The envelope containing the 

Objection to the Settlement must be postmarked on or before the date set forth in the 

Notice, which shall be forty-five (45) days after completion of mailing (or re-mailing, in 

the case of Notices returned undeliverable) of the Notice pursuant to the Settlement 

Agreement. Objections may otherwise be filed within forty-five (45) days after 

completion of mailing (or re-mailing) of the Notice pursuant to the Settlement Agreement. 

Only Settlement Class Members may object to the Settlement. A copy of such papers 

being filed in support of any Objection shall also be mailed to Class Counsel and Defense 

Counsel within the forty-five (45) day period set forth herein. 

15. Any Settlement Class Member who does not submit an Objection to the 

Settlement in complete accordance with this Order and the applicable provisions of the 

Settlement Agreement shall not be permitted to object to the settlement. 

16. Any objecting Settlement Class Member may appear at the hearing on the 

fairness of the proposed settlement (the “Fairness Hearing”) held by the Court, in person or 

by counsel, to show cause why the Settlement Agreement should not be approved as fair, 

reasonable and adequate, or to object to any petitions for attorney fees and reimbursement 

of litigation costs and expenses; provided, however, that the objecting Settlement Class 

Member must mail or file with the Clerk of the Court, a notice of intention to appear at the 

Fairness Hearing (a “Notice of Intention to Appear”) on or before the date set forth in the 

Notice, which shall be forty-five (45) days after the completion of mailing (or re-mailing) 

of the Notice pursuant to the Settlement Agreement. The Notice of Intention to Appear 

must include all information and documents required by the Settlement Agreement. Any 

Settlement Class Member who does not provide a Notice of Intention to Appear in 

complete accordance with the deadlines and other specifications set forth in the Settlement 

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Agreement, and who has not filed an Objection to the Settlement in complete accordance 

with the deadlines and other specifications set forth in the Settlement Agreement, will be 

barred from speaking or otherwise presenting any views at any Fairness Hearing. 

17. KCC shall also have the obligations otherwise enumerated in the Settlement 

Agreement. 

18. Class Counsel shall file with the Court their petition for payment of 

attorneys’ fees and reimbursement of litigation costs and expenses no later than thirty (30) 

days before the expiration of the deadline for submitting opt-outs from and Objections to 

the Settlement Agreement. This request shall be consistent with the provisions of Section 

5 of the Settlement Agreement. 

19. Fourteen (14) days prior to the date set for the Fairness Hearing, Plaintiff 

shall file a motion for judgment and final approval of the Settlement. The parties shall file 

their briefs in support of settlement approval, as well as any supplemental briefs supporting 

Class Counsel’s motion for attorneys’ fees and reimbursement of litigation costs, at that 

time. The briefing shall include the parties’ responses to any Objections, as well as a 

declaration setting forth the number of Settlement Class members who opted-out of the 

Settlement Class. Such briefing shall be served on any other attorneys who have entered 

an appearance in this proceeding, and on any member of the Settlement Class to whose 

Objection to the Settlement the memoranda or other briefing responds. 

If any Settlement Class Members object or opt-out after Plaintiff files the motion 

for final approval, the parties shall file supplemental briefing no later than seven (7) days 

prior to the date set for the Fairness Hearing, setting forth the parties’ responses to such 

Objections and the number of opt-outs. If appropriate, the parties shall include 

supplemental briefing on Class Counsel’s motion for attorneys’ fees at that time. 

20. On August 29, 2016, the Court will hold the Fairness Hearing. It shall be 

held in Courtroom 2, on the 17th floor of the United States Courthouse, 450 Golden Gate 

Avenue, San Francisco, California 94102, at a time and place to be set forth in the Mailed 

Notice. The Fairness Hearing may be continued or rescheduled by the Court with notice to 

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Class Counsel and Defense Counsel and to any objecting Settlement Class Member who 

has filed a Notice of Intention to Appear in accordance with Paragraph 16 of this Order. 

At the Fairness Hearing, or as soon thereafter as practicable, the Court will determine 

whether the proposed settlement is fair, reasonable, and adequate and should be approved 

by the Court. At the Fairness Hearing, the Court will also consider the amount of attorney 

fees and expenses that should be awarded to Class Counsel. If appropriate, the Court will 

issue a Final Order and Judgment memorializing its decision, in the form contemplated by 

the Settlement Agreement. 

21. Pending further orders by this Court, all proceedings in this case shall be 

stayed, except for proceedings pursuant to this Order. 

22. The preliminary approval hearing set for March 7, 2016 and the case 

management conference set for March 21, 2016 are vacated. 

IT IS SO ORDERED. 

Dated: 03/01/16 _____________________________________ 

THELTON E. HENDERSON 

United States District Judge 

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