Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_06-cv-02253/USCOURTS-casd-3_06-cv-02253-2/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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PRELIMINARY APPROVAL ORDER APPROVING CONDITIONAL CLASS CERTIFICATION AND GRANTING 

PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT 06-CV-2253 JM(RBB)

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

ARCHIBALD VORIS, 

MICHAEL IRICK AND GREG 

S. BRINSON ON BEHALF OF 

THEMSELVES AND OTHERS 

SIMILARLY SITUATED, 

 PLAINTIFFS, 

V. 

RESURGENT CAPITAL 

SERVICES, L.P., 

DEFENDANT. 

CASE NO.: 06-CV-2253 JM(RBB) 

CLASS ACTION 

PRELIMINARY APPROVAL ORDER 

APPROVING CONDITIONAL CLASS 

CERTIFICATION, GRANTING 

PRELIMINARY APPROVAL OF 

CLASS ACTION SETTLEMENT 

AGREEMENT, APPROVING CLASS 

NOTICE AND SETTING FINAL 

APPROVAL HEARING 

Hearing Date: March 3, 2008 

Time: 10:00 a.m. 

Judge: Hon. Ruben B. Brooks 

Courtroom: B 

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PRELIMINARY APPROVAL ORDER

 This matter coming before the Court on the Parties’ joint request for 

preliminary approval of a Class Settlement Agreement (“Agreement”), between 

Plaintiffs and Defendant Resurgent Capital Services, LP (“Resurgent”), and the 

Court being advised of the following premises of the proposed Class Settlement: 

A. Plaintiffs and Resurgent have entered into a Class Action 

Settlement Agreement (“Settlement Agreement”), attached to 

the Joint Motion as Exhibit 1.

B. The Settlement Agreement is submitted to the Court for 

approval pursuant to Rule 23(e) of the Federal Rules of Civil 

Procedure.

C. The definitions and terms set forth in the Settlement Agreement 

filed with the Court in support of this motion (“Settlement 

Agreement”) are hereby incorporated in this Preliminary 

Approval Order.

D. Pursuant to the Settlement Agreement, Defendant agrees to 

certification of a class action as a Rule 23(b)(3) class with class 

notice by publication to the Class Members as described in the 

Settlement Agreement. 

E. Pursuant to the Settlement Agreement, Resurgent shall provide 

the following relief to Plaintiffs and the Class: 

1. Resurgent shall pay to the San Diego County Legal 

Aid Society, through Class Counsel, as a cy pres distribution on 

behalf of the Class the total sum of $48,568.13, which is 1% of 

Resurgent’s net worth, the maximum amount of damages 

allowed in an FDCPA class action under 15 U.S.C. § 

1692k(a)(2)(B).

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2. Resurgent shall pay Plaintiffs, through Class Counsel 

as incentive payments, the amount of $1,250 each (a total of 

$3,750), for their efforts in litigating this action. Resurgent shall 

make those payments in the time period as set forth within the 

Settlement Agreement. 

3. Resurgent shall be responsible for, and shall bear the 

costs of, Class Notice. Resurgent shall also pay $5,000 to 

Gilardi & Company LLC prior to publication of the Class 

Notice for administration of the settlement in accordance with 

an agreement for same entered into between Class Counsel and 

Gilardi & Company LLC. Gilardi & Company LLC is 

approved as the settlement administrator to provide a 

mechanism for responding to inquiries about the settlement as 

described in the published Class Notice. 

4. Pursuant to the Settlement Agreement, and subject to 

Court approval, Resurgent agrees to pay up to $60,270.91 for 

attorney’s fees and costs to class counsel. 

F. Pursuant to the Settlement Agreement, Plaintiffs will dismiss all 

claims against the Defendant upon the Court’s entry of an 

Order of Final Approval of this settlement and the dismissal of 

this action.

G. Pursuant to the Settlement Agreement, Plaintiffs and each Class 

Member shall, as of the Effective Date, be deemed to release 

and discharge forever Defendant (as defined in the Settlement 

Agreement) from all Released Claims. “Released Claims” 

means:

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For Plaintiffs, all claims, actions, causes of action, 

demands, rights, damages, costs, attorneys’ fees, expenses, and 

compensation whatsoever arising from the envelopes, mailers 

and other facts alleged in the Litigation that they or their heirs, 

executors, administrators, successors, assigns, and attorneys 

may have against Defendant for violation of the Fair Debt 

Collection Practices Act, 15 U.S.C. § 1692 et seq., or the 

California Fair Debt Collection Practices Act (or “Rosenthal 

Fair Debt Collection Practices Act”), California Civil Code §§ 

1788-1788.32, as of the date of the Settlement Agreement, it 

being the intent of Archibald Voris, Michael Irick and Greg S. 

Brinson (all of the named Plaintiffs) to release all claims 

against Defendant under those Acts that were alleged, or could 

have been alleged, in the Litigation. 

For the Class, any and all claims, actions, causes of 

action, demands, rights, damages, costs, attorneys’ fees, 

expenses, and compensation whatsoever arising from the 

envelopes, mailers and other facts alleged in the Litigation that 

the Class Members or the Class Members’ respective heirs, 

executors, administrators, successors, assigns, and attorneys 

have and/or could assert against Defendant for violation of the 

Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq. or 

the California Fair Debt Collection Practices Act, California 

Civil Code §§ 1788-1788.32. 

This Agreement and the settlement embodied herein shall 

not release any debts owed by Plaintiffs or the Class, nor shall 

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this settlement operate as an accord and satisfaction of such 

debts.

For good cause shown, IT IS HEREBY ORDERED:

1. Solely for the purposes of this settlement, and pursuant to Rule 23, this case 

is certified under Fed. R. Civ. P. 23(a) and (b)(3) as a class action against 

Defendant by the following, hereinafter referred to as the “Class”: 

All individuals in the State of California, during the 

Class Period, who were sent an envelope by Resurgent 

Capital Services, L.P. bearing the language “You are Preapproved ... *See conditions inside” on the outside of the 

envelope and/or a collection letter from Resurgent 

Capital Services, L.P. that included a pre-approved Visa 

credit card offer. The Class Period is the period from 

October 6, 2005, to July 31, 2007. 

If for any reason the settlement is terminated or is not finally 

approved, then (a) this preliminary approval of the Class shall be null 

and void, and shall not be used or referred to for any purpose in this 

Litigation or any other action or proceedings, and (b) all status quo 

ante rights of the parties, including (i) Plaintiffs’ right to seek 

certification of this action as a class action and Resurgent’s right to 

oppose certification, and (ii) the parties’ rights assert all other 

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defenses, rights, and positions, shall in all respects be unaffected and 

preserved.

2. The Court finds that the proposed settlement is within the range of fairness 

and reasonableness and grants preliminary approval of it. The Settlement 

Agreement (Exhibit 1 to the Joint Application for Preliminary Approval) is 

preliminarily approved. 

3. For settlement purposes only, after considering the relevant factors in Fed. 

R. Civ. P. 23, the Plaintiffs are conditionally designated as representatives of 

the Class and Hyde & Swigart and the Law Offices of Douglas J. Campion 

are conditionally appointed as Class Counsel for the Class. 

4. A hearing (“Final Approval Hearing”) on the settlement and the requests for 

fees and expenses by Class Counsel will be held before this Court on June 

16, 2008 at 10:00 a.m. to determine, among other things: (a) whether the 

proposed settlement should be approved as fair, reasonable and adequate; (b) 

whether the Litigation should be dismissed with prejudice pursuant to the 

terms of the Settlement Agreement; (c) whether Class Members should be 

bound by the release set forth in the Settlement Agreement; (d) whether 

Class Members should be subject to a permanent injunction barring them 

from filing, commencing, prosecuting, intervening in or participating in (as 

Class Members or otherwise) any lawsuit, claim, demand or proceeding in 

any jurisdiction that is based on or related to, directly or indirectly, matters 

within the scope of the Released Claims; (e) whether the Class should be 

finally certified; (f) the amount of attorneys’ fees and costs to be awarded to 

Class Counsel; and (g) the amount to be awarded to Plaintiffs for their 

services as class representative. This hearing may be postponed, adjourned 

or continued by order of the Court without further notice to the Class. 

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5. Any papers to be filed by Class Counsel in support of their request for 

attorneys’ fees and expenses shall be filed with the Court no later than May

19, 2008 [28 days before hearing date per local rule]. 

6. The Court approves the proposed form of Class Notice. A Summary Notice 

will be published in the Union Tribune, San Francisco Chronicle, Orange 

County Register, Los Angeles Times, and Sacramento Bee with a 

distribution throughout the respective regions in California, once, by May 2, 

2008 (approximately sixty (60) days from the entry of this Order). A 

declaration shall be filed with the Court by a representative of Gilardi & Co., 

LLC attesting to the facts in support of such publication in compliance with 

this Order. Defendant shall pay forthwith Gilardi & Co., LLC the sum of 

$5,000 for administration, payable through Class Counsel. A copy of the 

full and complete Class Notice, in the form attached to the Settlement 

Agreement as Exhibit C, will be displayed on the website of the claims 

administrator, Gilardi & Co., LLC. 

7. The Court finds publication of the Class Notice and the other measures 

specified above is the only notice required and that such notice satisfies the 

requirements of due process and Fed. R. Civ. P. 23(c)(2)(B).

8. Class Members shall have until June 6, 2008, which is at least thirty-five 

(35) days from the date of the last date of publication of the Class Notice, to 

opt out or object to the proposed settlement. Any Class Members who 

desire to exclude themselves from the action must mail a request for 

exclusion to Class Counsel postmarked by that date, stating the Class 

Member’s full name, address and telephone number; containing the Class 

Member’s original signature; and unequivocally stating the Class Member’s 

intent to be excluded from the Class and the settlement. Any Class Member 

who properly requests exclusion will have no standing to object to the 

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settlement or to seek to intervene in the Litigation. On or before the Final 

Approval Hearing, Class Counsel shall create and file with the Court a 

comprehensive list of Class Members who have successfully requested 

exclusion from the Class.

9. Any Class Member who wishes to object to the settlement must submit an 

objection in writing to the Clerk of the United States District Court for the 

Southern District of California, and serve copies of the objection on counsel 

for Plaintiffs postmarked by June 6, 2008, a date which is at least thirty-five 

(35) days from the date of the last date of publication of the Class Notice. 

To be valid, the objection must (a) set forth the objector’s full name, current 

address, and telephone number; (b) contain the objector’s original signature; 

(c) state that the objector objects to the Settlement, in whole or in part; (d) 

set forth a statement of the legal and factual basis for the objection; and (e) 

provide copies of any documents that the objector wishes to submit in 

support of their position. Objections that are not timely filed with the Court 

and sent to Class Counsel, and/or are otherwise invalid, will not be 

considered by the Court. 

10. Any Class Member who wishes to intervene in the Litigation or seek other 

relief from the Court must file with the Court, and contemporaneously serve 

on Class Counsel an appropriate motion or application, together with all 

supporting pleadings or documentation, on or before June 6, 2008, a date 

which is at least thirty-five (35) days from the date of the last date of 

publication of the Class Notice. 

11. In the event that (i) the Settlement Agreement is terminated pursuant to its 

terms, or (ii) the Settlement Agreement is not approved at the Final 

Approval Hearing, then (a) all orders entered pursuant to the Settlement 

Agreement shall be vacated, including this Order; (b) the Litigation shall 

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proceed as though a Settlement Agreement had never been reached; (c) no 

reference to the prior Settlement Agreement, or any documents related 

thereto, shall be made for any purpose; (d) nothing in this Order shall be 

construed or used as an admission, concession or declaration by or against 

Defendant, of any fault, wrongdoing, breach or liability; (e) this Order shall 

not be construed by or against the Plaintiffs or Class Members that their 

claims lack merit or that the relief requested in this Litigation is 

inappropriate, improper or unavailable, or as a waiver by any party of any 

defenses it may have; (f) this Order shall not be construed or used to show 

that certification of one or more classes would or would not be appropriate if 

this Litigation was to be litigated rather than settled. In the event of (i) or 

(ii) in this paragraph, all parties reserve all of their rights existing prior to the 

execution of the Settlement Agreement, and the doctrines of res judicata and 

collateral estoppel shall not be applied. 

12. Neither the Settlement Agreement, this Preliminary Approval Order, nor any 

of their provisions, nor any of the documents (including but not limited to 

drafts of the Settlement Agreement, the Preliminary Approval Order or the 

Final Judgment and Order), negotiations, or proceedings relating in any way 

to the Settlement, shall be construed as or deemed to be evidence of an 

admission or concession of any kind or any person, and shall not be offered 

or received in evidence, or subject to discovery, in this or any other action or 

proceeding except in an action brought to enforce its terms or except as may 

be required by law or court order. 

DATE: March 4, 2008 By:______________________________

Hon. Ruben B. Brooks 

 Magistrate Judge of the U.S. District Court 

__________________________ R b B B k

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