Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_05-cv-04993/USCOURTS-cand-4_05-cv-04993-13/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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Civ. No. 05-4993 SBA/06-2037 SBA: ORDER RE: JOINT MOTION FOR PRELIMINARY APPROVAL OF CLASS 

SETTLEMENT: Page 1 

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Paul Arons, State Bar #84970 

685 Spring Street, #104 

Friday Harbor, WA 98250 

Tel: (360) 378-6496 

Fax: (360) 378-6498 

lopa@rockisland.com

Ronald Wilcox, State Bar #176601 

LAW OFFICE OF RONALD WILCOX 

2160 The Alameda, 1st Flr., Suite F 

San Jose, CA 95126 

(408) 296-0400 

Attorneys for Plaintiffs Brandy Hunt 

and Brian Castillo and the Class 

UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA 

OAKLAND DIVISION 

BRANDY HUNT and BRIAN 

CASTILLO, on behalf of hem and 

others similarly situated, 

 Plaintiffs, 

vs. 

IMPERIAL MERCHANT SERVICES, 

d/b/a CHECK RECOVERY 

SYSTEMS, 

 Defendant. 

Case No. 05-04993 SBA 

Case No. 06-02037 SBA 

CLASS ACTION 

ORDER GRANTING MOTION FOR 

PRELIMINARY APPROVAL OF 

CLASS SETTLEMENT PURSUANT 

TO FED.R.CIV.P. 23(e) 

Date: 

Time: 

Courtroom 

Plaintiffs Brandy Hunt and Brian Castillo have filed with this Court and served on all 

parties of record in this action a Joint Motion and Motion for Entry of Order Preliminarily 

Case 4:05-cv-04993-DMR Document 180 Filed 06/21/10 Page 1 of 7
Civ. No. 05-4993 SBA/06-2037 SBA: ORDER RE: JOINT MOTION FOR PRELIMINARY APPROVAL OF CLASS 

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Approval of Settlement Pursuant to Fed.R.Civ.P. 23(e), which includes, or incorporates: (1) 

Notice of Proposed Class Action Settlement ["Class Notice"], a copy of which is attached as 

Exhibit A.; (2) a Stipulation of Settlement ["Stipulation"]; (3) a Plan of Distribution; (4) a 

(Proposed) Order Granting Motion for Preliminary Approval of Settlement Pursuant to 

Fed.R.Civ.P. 23(e); and, (5) a proposed Final Judgment. These documents are available for 

inspection. 

This Court has considered the arguments of counsel, the documents described above, 

including the Stipulation of Settlement filed by the parties, and all of the other pleadings, 

papers and files in this action. 

Good cause appearing therefore, IT IS ORDERED, 

1. Plaintiffs' Counsel shall continue to act on behalf of the members of the Class, 

including the class representative, and is authorized to perform with respect to all acts or 

consents required by or which may be given by them pursuant to the Stipulation of 

Settlement ["Stipulation"], or such other acts which are reasonably necessary to 

consummate the Settlement. All acts or consents required by or which may be given by 

Plaintiffs' Counsel shall be effective only if done or given in writing by Plaintiffs' Counsel. 

2. The definitions set forth in the Stipulation of Settlement and Plan of Distribution 

are incorporated into this order by this reference as though set forth in full. 

3. The Court preliminarily approves the Stipulation as being fair, adequate and 

reasonable to the Class, subject to the right of any Damages Class Member to challenge the 

adequacy of any of the terms of the Stipulation, and to show cause, if any exists, why a 

judgment dismissing the Action against Imperial Merchant Services, Inc., doing business as 

Check Recovery Systems ["IMS"], based on the Stipulation should not be entered at the 

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Civ. No. 05-4993 SBA/06-2037 SBA: ORDER RE: JOINT MOTION FOR PRELIMINARY APPROVAL OF CLASS 

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Settlement Hearing ordered in this notice, after due and adequate notice to Damages Class 

Members has been given in conformity with this order. 

4. This Court orders that any funds deposited into the Trust Account pursuant to the 

Stipulation of Settlement and Plan of Distribution shall be deemed to be in the custody of 

the District Court until such time as such funds, or any portion of such funds, shall be 

disbursed in accordance with the Stipulation. 

5. This Court approves the Class Notice that is attached as Exhibit A to this order as 

fairly summarizing the Stipulation of Settlement and Plan of Distribution and authorizes 

Plaintiffs’ Counsel to establish a website providing Class Members with more detailed 

information concerning the litigation and proposed settlement. 

6. The Plan of Distribution filed in conjunction with the Stipulation provides the 

method which shall be used in compiling the names and addresses of members of the 

Damages Class. 

7. Within 30 days after entry of this Order, Plaintiffs' Counsel or their agents shall 

mail the Class Notice, substantially in the form of Exhibit A to this Order, to each Damages 

Class member identified by IMS’ data, previously produced to Plaintiffs’ Counsel by IMS. 

8. Plaintiff’s' Counsel shall take or cause to be taken such steps as are reasonable to 

identify current addresses for Damages Class members, including without limitation use of 

the National Change of Address ["NCOA"] system. 

9. Plaintiffs' Counsel, or their agent, shall furnish, upon request of any potential 

Damages Class Member, copies of the Settlement Notice and shall respond to all reasonable 

inquiries from Damages Class Members, and shall pay from the Settlement Fund the 

reasonable costs and expenses of notifying Damages Class Members of the proposed 

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settlement. 

10. Pursuant to Rule 23 of the Federal Rules of Civil Procedure, this Court finds and 

concludes that by following the procedure set forth in this Order and the Plan of Distribution 

filed in conjunction with the Stipulation, the parties will have made reasonable efforts in 

attempting to identify the names and addresses of individual Damages Class Members. This 

Court further finds that the form and manner of giving notice by mail required by this order 

is the best notice to all members of the Damages Class who can be identified through 

reasonable effort. The notice procedure provides due and sufficient notice of these 

proceedings and of the matters described in the Class Notice, including the proposed 

Settlement set forth in the Stipulation, to all persons entitled to such notice. The notice 

procedure fully satisfies the requirements of Rule 23(e) of the Federal Rules of Civil 

Procedure and the requirements of due process. 

11. Any Class Member may enter an appearance through counsel of such member's 

own choosing and at such member's own expense. Any Class Member who does not enter 

an appearance will be represented by Plaintiffs' Counsel. 

12. A Class Member who has properly and timely filed a request for exclusion will 

be excluded from the Damages Class by the Court and will be free to pursue any rights he or 

she may have to monetary relief, but will not participate in the proposed Settlement. Any 

Class Member who has not properly or timely filed a request for exclusion is included in the 

Class and upon any approval of the Stipulation will be bound by it and any judgment 

rendered on it. 

13. On September 21, 2010 at 1:00 p.m., in Courtroom 1 of the United States 

District Courthouse, located at at 1301 Clay Street, Oakland, California, a hearing will be 

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held before the Honorable Saundra B. Armstrong to determine whether this Court should 

finally approve the fairness, reasonableness and adequacy of the terms and conditions of the 

Settlement set forth in the Stipulation, and enter judgment thereon. The Court will also 

determine whether the Settlement was entered into in good faith under applicable law. 

14. Any Class Member may appear personally or by counsel at the Fairness Hearing 

and may object or express the Class Member's views regarding the Settlement set forth in 

the Stipulation. To be heard at the hearing a Class Member must file a statement of 

intention to appear at least ten (10) days prior to the hearing. Any Class Member may also 

present evidence and file briefs or other papers that may be proper and relevant to the issues 

to be heard and determined by this Court. To be considered by the District Court, any such 

papers must be filed with the Clerk of the Court, United States District Court, Northern 

District of California, 1301 Clay Street, Oakland, California, at least twenty (20) days 

before the date set for the hearing. The Class Member must also mail a copy of any written 

opposition or statement of his or her intention to appear to each of the following: 

PAUL ARONS 

LAW OFFICES OF PAUL ARONS 

685 Spring Street, #104 

Friday Harbor, WA 98250 

Stephen A. Scott 

Hayes, Scott, Bonino, Ellingson & 

McLay, LLP 

203 Redwood Shores Parkway Suite 

480 

Redwood City, CA 94065 

15. On or before the date fixed by this Court for the hearing, Plaintiffs' Counsel shall 

cause to be filed with the Clerk of the Court affidavits or declarations of the person or 

persons under whose general direction the mailing of the Class Notice shall have been 

prepared and made, showing that such mailing has been made in accordance with this Order. 

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16. Upon the Effective Date and full performance of all monetary obligations by 

IMS set forth in the Stipulation, plaintiffs Brandy Hunt and Brian Castillo, and Class 

Members shall be deemed to have given IMS full and final releases of all claims asserted or 

that could have been asserted in this Action, whether known or unknown, arising out of the 

facts and circumstances surrounding IMS' actions in seeking to collect on the checks at 

issue, as set forth in the Stipulation of Settlement. 

17. The Fairness Hearing from time to time without further notice to the Class may 

be continued or adjourned by order of this Court, without further notice to the Class, except 

notice shall be provided to any class member who has filed a timely objection. 

18. Without affecting the finality of the judgment to be entered, this Court shall 

retain jurisdiction over: (a) implementation and enforcement of the Settlement; (b) 

disposition of the Settlement Fund to Damages Class Members; (c) hearing and determining 

Plaintiffs' Counsel's application for attorneys' fees, costs, interest and expenses; (d) the 

Action until the final judgment contemplated in this order has become effective and each 

and every act agreed to be performed by the parties shall have been performed pursuant to 

the Stipulation. 

19. Any exhibits attached to this order are incorporated by this reference as though 

set forth in full. 

20. This Order is entered only for the purposes of settlement. If for any reason the 

Stipulation is terminated, this Order and the Stipulation shall be terminated pursuant to the 

terms of the Stipulation, and the parties shall be deemed to have reverted to their respective 

status and positions in the Action as of December 19, 2009, as set forth in Section 10.2 of 

the Stipulation of Settlement. Any judgment rendered in connection with the Stipulation of 

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Settlement shall be vacated nunc pro tunc. 

IT IS SO ORDERED. 

DATED: 6/21/10 ____________________________ 

 Hon. Saundra B. Armstrong 

 U.S. DISTRICT COURT JUDGE 

 NORTHERN DISTRICT OF CALIFORNIA 

Case 4:05-cv-04993-DMR Document 180 Filed 06/21/10 Page 7 of 7