Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_11-md-02261/USCOURTS-casd-3_11-md-02261-2/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 28:1331 Fed. Question

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

In re JIFFY LUBE INTERNATIONAL, INC.

TEXT SPAM LITIGATION

This filing relates to: ALL CASES.

___________________________________

Case No.: 3:11-MD-2261-JM (JMA)

ORDER PRELIMINARILY APPROVING

CLASS ACTION SETTLEMENT AND

PROVIDING FOR NOTICE

WHEREAS, this action is pending before this court as a class action, Case No. 3:11-MD-2261-

JM (JMA) (the “Action”); and 

WHEREAS, the plaintiff has moved this court for an order preliminarily approving the

settlement of the Action in accordance with the Class Action Settlement Agreement (“Settlement”),

which, together with the attached exhibits, set forth the terms and conditions for the proposed

settlement of the Action; and 

WHEREAS, the court, having read and considered the Settlement and attached exhibits;

NOW, THEREFORE, IT IS HEREBY ORDERED:

1. Based upon the court’s review of the Settlement, the supporting briefs and declarations,

and the entire record, Plaintiffs’ Motion for Preliminary Approval of Settlement is GRANTED

with modifications. 

2. This order incorporates by reference the definitions in the Settlement, and all terms

defined therein shall have the same meaning in this order as set forth in the Settlement.

3. The court hereby conditionally certifies the following class for settlement purposes only

(the “Settling Class”):

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All persons or entities in the United States and its Territories who in April 2011

were sent a text message from short codes 72345 or 41411 promoting Jiffy Lube

containing language similar to the following:

JIFFY LUBE CUSTOMERS 1 TIME OFFER:

REPLY Y TO JOIN OUR ECLUB FOR 45% OFF A 

SIGNATURE SERVICE OIL CHANGE! STOP TO UNSUB MSG&DATA

RATES MAY APPLY T&C: JIFFYTOS.COM.

Based upon the court’s review of the Settlement, the supporting briefs and

4.

declarations, and the entire record, the Action presents common issues of law and fact, plaintiffs

Joseph Crowl, Lawrence Cushnie, Tramy Duong, Rene Heuscher, Edward Koeller, Dawn Souder,

and Jacob Barr are found to be an adequate representative of the Class, and their claims are found

to be typical of the other members of the Settling Class (“Class Members”). The following

attorneys are hereby appointed and designated as counsel for the Plaintiff and the Class (“Class

Counsel”):

JAY EDELSON, Lead Class Counsel

Edelson McGuire, LLC

350 North LaSalle Street, Suite 1300

Chicago, IL 60654

Telephone: (312) 589-6370

Facsimile: (312) 589-6378

MICHAEL J. MCMORROW, Lead Class Counsel

Smith & McMorrow, P.C.

53 West Jackson Boulevard, Suite 1018

Chicago, IL 60604

Telephone: (312) 546-6139 

Facsimile: (888) 664-8172

DOUGLAS J. CAMPION, Liaison Counsel

Law Offices of Douglas J. Campion

409 Camino Del Rio South, Suite 303

San Diego, CA 92108

Telephone: (619) 299-2091

Facsimile: (619) 858-0034

5. Class Counsel is authorized to act on behalf of Class Members with respect to all

acts or consents required by, or which may be given under the Settlement, and such other acts

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reasonably necessary to consummate the Settlement. Any Class Member may enter an appearance

through counsel of such Class Member’s own choosing and at such Class Member’s own expense. 

Any Class Member who does not enter an appearance or appear on his or her own will be

represented by Class Counsel.

6. The court preliminarily approves the Settlement, including Injunctive Relief, the 1

Certificates, Class Counsel Fees and Expenses Payment, and the Class Representative Incentive

Award. The court finds that, on a preliminary basis, the Total Goods/Services Value, as defined in

the Settlement, appears to be within the range of reasonableness of a settlement that could

ultimately be given final approval by this court. The court has reviewed the recovery that is being

provided as part of the Settlement and recognizes the significant value to the Class of that

recovery. The court has reviewed the relevant facts and law, including, but not limited to, all

previous pleadings filed in this Action and the papers and declarations submitted by the Parties in

support of preliminary approval. It appears to the court on a preliminary basis that the Total

Goods/Services Value, as defined in the Settlement, is fair, adequate, and reasonable as to all

potential Class Members when balanced against the cost and uncertainty associated with further

litigation of liability and damages issues. It further appears that extensive investigation and

research have been conducted such that counsel for the Parties at this time are able to reasonably

evaluate their respective positions. Moreover, it appears to the court that settlement of this Action

at this time will avoid substantial additional costs by all Parties, as well as the delay and risks that

would be presented by the further prosecution of the Action. It also appears that the Settlement has

been reached as the result of intensive, serious, and non-collusive arms-length negotiations.

7. A hearing (the “Final Approval Hearing”) shall be held before this court on

Monday, February 4, 2013, at 10:00 a.m. at the United States District Court for the Southern

District of California, 940 Front Street, San Diego, CA 92101, in Courtroom 16 to determine all

While the Settlement is generally satisfactory, the court identified one substantive error contained on pages 10 1

and 15 of the agreement in Sections 2.2(d) and 5.2. Both page 10 and page 15 contain references to “Section 5.1” that

should actually refer to Section 5. Both references to Section 5.1 will be changed to “Section 5” on pages 10 and 15 in

Sections 2.2(d) and 5.2. 

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necessary matters concerning the Settlement, including: whether the proposed Settlement of the

Action on the terms and conditions provided for in the Settlement is fair, adequate, and reasonable

and should be finally approved by the court; whether a Judgment, as provided in the Settlement,

should be entered herein; whether the proposed allocation and distribution of the Total

Goods/Services Value contained in the Settlement should be approved as fair, adequate and

reasonable to the Class Members; and to finally approve the Class Counsel Fees and Expenses

Payment and the Class Representative Payment.

8. The court approves, as to form and content, the Notice Plan and all forms of Notice

to the Settlement Class as set forth in the Settlement and Exhibits B, C, and D thereto, including

the updated direct mail notice filed with the Court on October 4, 2012 [Dkt. No. 81, Exhibit B],

with the following modifications. Consistent with paragraphs 2.2 through 2.4 of the Settlement,

within twenty-one (21) days of Preliminary Approval, the Settlement Administrator shall cause to

be sent via U.S. Mail the Mailed Notice substantially in the form of Exhibit B to the Settlement to

each address appearing on the Settlement Class List. Defendants shall also comply with the

requirements of 28 U.S.C. § 1715. The court finds that the distribution of the Notice and Claim

Form substantially with the requirements of the Federal Rules of Civil Procedure in the manner

and form set forth in the Settlement. This notice plan satisfies due process requirements, is the

best notice practicable under the circumstances, and shall constitute due and sufficient notice to all

Class Members. 

9. The court appoints Epiq Class Action & Claims Solution as Settlement

Administrator and directs the Settlement Administrator to mail to Class Members one Certificate

by first-class mail within twenty-one (21) days after the entry of this Preliminary Approval order

under the procedures set forth in the Settlement. Class Members are not required to complete any

claim or form to receive a Certificate. Within ten (10) days of the Preliminary Approval, the

Settlement Administrator will also confirm that Notice has been provided on a website at

www.HeartlandTextSettlement.com and that a toll-free telephone number consistent with

paragraph 4.3 of the Settlement has been established. Within twenty-one (21) days of the

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Preliminary Approval, Heartland will also place a display sign substantially in the form of Exhibit

D in each of its franchises, directing customers to the settlement website and toll-free telephone

number.

10. Any Class Member may choose to opt out of and be excluded from the Settlement

as provided in the Certificate by following the instructions for requesting exclusion from the

Settlement that are set forth in the Certificate and Settlement. All written requests for exclusion

must be submitted as provided in the Certificate and Settlement. Any such person who chooses to

opt out of and be excluded from the Settlement will not be entitled to any recovery under the

Settlement, including receipt of a Certificate, and will not be bound by the Settlement or have any

right to object, appeal or comment thereon. Any written request to be excluded from the

Settlement must be express and signed by each such person. Individuals in the Class who have not

requested exclusion shall be bound by all determinations of the court, the Settlement, and any

Judgment that may be entered thereon.

11. Any Participating Class Member may appear at the Final Approval Hearing and

object to the Settlement (“Objectors”). Objectors may present evidence and file briefs or other

papers that may be proper and relevant to the issues to be heard and determined by the court as

provided in the Notice. To be valid, the papers must be filed with the Clerk of this court and

received by all Class Counsel and defense counsel on or before 45 days after the original date of 2

mailing of the Certificates, or December 17, 2012. No Class Member or any other person shall be

heard or entitled to object, and no papers or briefs submitted by any such person shall be received

or considered by the court, unless on or before 45 days after the original date of mailing of the

Certificates, that person has served by hand or by first-class mail written objections and copies of

any papers and briefs in support of their position and verification of their membership in the Class

upon Class Counsel and Counsel for Defendant, and filed the objections, papers and briefs with the

Clerk of this court. Any Participating Class Member who does not object in the manner provided

Objectors should mail objections to Defense Counsel at the following addresses: Counsel for Heartland Glenn M. Kurtz 2

and Kimberly A. Haviv, White & Case LLP, 1155 Avenue of the Americas, New York, NY 10036; and Counsel for

Textmarks, Brian D. Buckley, Fenwick & West LLP, 1191 Second Avenue, 10 Floor, Seattle, WA 98101. th

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for in this order shall be deemed to have waived such objection and shall forever be foreclosed

from objecting to the Settlement.

12. All papers in support of the Settlement shall be filed with the court and served on

the Parties’ Counsel no later than November 19, 2012, or twenty-eight (28) court days before the

Objection/Exclusion deadline of December 17, 2012. 

13. To the extent permitted by law, pending final determination as to whether the

Settlement should be approved, any individuals within the Class, whether directly,

representatively, or in any other capacity, whether or not such persons have appeared in the Action,

shall not institute or prosecute against Defendant any claims to be resolved through this Settlement. 

The court incorporates by reference and preliminarily approves the release of claims set forth in

Section 3 of the Settlement.

14. As of the date this order is signed, all dates and deadlines associated with the Action

shall be stayed, other than those related to the administration of the Settlement of the Action.

15. If the Settlement does not become effective in accordance with the terms of and as

defined in the Settlement, or if the Settlement is not finally approved by the court, or is terminated,

canceled or fails to become effective for any reason, this order shall be rendered null and void and

shall be vacated, and the Parties shall revert to their respective positions as of before entering into

the Settlement. Accordingly, if the Settlement does not become effective for any reason: (i) the

Settlement shall be null and void, including any provision related to the award of attorneys’ fees,

and shall have no further force and effect with respect to any Party in this Action, and shall not be

used in this Action or in any other proceeding for any purpose; (ii) all negotiations, proceedings,

documents prepared, and statements made in connection therewith shall be without prejudice to

any person or Party hereto, shall not be deemed or construed to be an admission by any Party of

any act, matter, or proposition, and shall not be used in any manner or for any purpose in any

subsequent proceeding in this Action or in any other action in any court or other proceeding,

provided, however, that the termination of the Settlement shall not shield from subsequent

discovery any factual information provided in connection with the negotiation of this Settlement

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that would ordinarily be discoverable but for the attempted settlement; (iii) other than as expressly

preserved by the Settlement in the event of its termination, the Settlement shall have no further

force and effect with respect to any Party and shall not be used in the Action or any other

proceeding for any purpose; and (iv) any Party may elect to move the Court pursuant to the

provisions of this paragraph, and none of the non-moving Parties (or their counsel) shall oppose

any such motion.

16. The court reserves the right to adjourn or continue the date of the Final Approval

Hearing and all dates provided for in the Settlement without further notice to Class Members, and

retains jurisdiction to consider all further applications arising out of or connected with the

proposed Settlement.

17. The court retains exclusive jurisdiction over the Action to consider all further

matters arising out of or connected with the Settlement until Judgment has been entered.

18. In accordance with the terms of the Settlement, the court hereby adopts the

following dates for performance of the specified activities:

October 20, 2012

(10 days after preliminary

approval)

Deadline for the settlement administration to confirm the

establishment of a toll-free telephone number that will include a

recorded message of Exhibit D. 

October 20, 2012

(10 days after preliminary

approval)

Deadline for Defendant to confirm that Notice has been

provided on the website: www.HeartlandTextSettlement.com.

October 31, 2012

(21 days after preliminary

approval)

Deadline for Settlement Administrator to mail the Class Notice

to all Class Members.

October 31, 2012

(21 days after preliminary

approval)

Deadline for Defendant Heartland to cause a sign substantially

in the form of Exhibit D to be placed in each of its Jiffy Lube

franchises.

November 19, 2012

(28 days prior to

Objection/Exclusion deadline)

Parties will file all papers in support of the Settlement with the

court.

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December 17, 2012

(45 days after mailing of Class

Notice)

Last day for Class Members to submit written objections to

Settlement and any notice of intent to appear at Final Approval

Hearing.

December 17, 2012

(45 days after mailing of Class

Notice)

Last day for eligible Class Members to submit requests to be

excluded from the Settlement.

December 30, 2012

(60 days after mailing of Class

Notice)

Parties shall jointly request Final Approval from the court.

January 18, 2013

(15 days prior to Final

Approval hearing)

Last day for filing of any written opposition to Motion for Final

Approval of Settlement and/or to Plaintiffs’ request for

attorneys’ fees, costs, and Class Representative payment.

February 4, 2013 Final Approval Hearing.

To Be Determined

(21 days after Effective Date)

Heartland shall cause one certificate to be mailed to each

address appearing on the Settlement Class list.

To Be Determined

(18 months after mailing of

Class Notice and ending 90

days thereafter)

Any Certificate that has not been redeemed for goods and/or

services as described in Settlement Section 2.3(b) may, at the

Certificate holder’s election, be redeemed for the Certificate

Cash Amount set described in Settlement Section 2.3(c) during

this period. 

IT IS SO ORDERED.

DATED: October 10, 2012

 Hon. Jeffrey T. Miller

 United States District Judge

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