Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_05-cv-00274/USCOURTS-cand-5_05-cv-00274-7/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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United States District Court

For the Northern District of California

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United States District Court

For the Northern District of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

Donald Johnson, on behalf of himself and all

others similarly situated,

Curtis Hollars, on behalf of himself and all

others similarly situated,

Plaintiffs,

 v.

National Credit Acceptance, Inc., et al.,

Defendant(s). /

NO. C 05-00274 JW 

Related Case No. C 05-00978

PRELIMINARY APPROVAL ORDER OF

THE CLASS ACTION SETTLEMENT 

Preliminary Approval Order of the Class Action Settlement

This matter comes before the Court on the joint request of Donald Johnson and Curtis

Hollars, in their individual capacities and on behalf of the Settlement Class, on the one hand, and

National Credit Acceptance, Inc., NCA Financial Services, Inc., and S. Ritter, the named

Defendants, on the other hand, for preliminary approval of the Class Action Settlement Agreement

(the “Agreement”), dated February 17, 2006. The Court conducted a hearing on March 27, 2006. 

Based on the Court's review of the Agreement and its attached exhibits, and, good cause appearing,

Case 5:05-cv-00274-JW Document 30 Filed 03/28/06 Page 1 of 7
United States District Court

For the Northern District of California

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IT IS HEREBY ORDERED AS FOLLOWS:

1. Definitions. For the purposes of this Order, the Court adopts by reference the

definitions set forth in the Definitions section of the Class Action Settlement Agreement, which is

attached to the Joint Motion as Exhibit A.

2. Preliminary Approval. The Court preliminarily approves the Settlement of the Action

set forth in the Agreement, the parties’ Joint Motion and Exhibits thereto as being fair, reasonable,

and adequate to the Parties. Specifically, this Court finds that: 

a. The following Class is hereby certified for settlement purposes: All consumers who,

according to Defendants’ records, were sent a collection letter that was materially

identical or substantially similar to Exhibits 2, 5, or 7 (attached to the Johnson

complaint), or Exhibit 1 (attached to the Hollars complaint) by Defendants in the

year prior to the filing of this litigation and which letters were not returned by the

postal service as undeliverable.

b. Payment of a pro rata share of a $20,000.00 settlement fund to those class members

who timely submit a claim form is fair and reasonable, based upon the Defendants’

net worth representations. The Defendants have represented that this settlement

accounts greater than 65% of the 1% net worth recovery permitted by statute.

c. Payment of $3,000.00 to each of the named Class Representatives, Donald Johnson

and Curtis Hollars, and a release of any purported obligation to pay the alleged debts

Defendants sought to collect from them is fair and reasonable compensation for their

roles in this litigation.

d. Payment of $25,000.00 in attorneys’ fees and costs, which is not taken from any

recovery to the Class Members, is fair and reasonable for the services provided by

Class Counsel in this case, which services will continue until all questions of the

Class Members have been answered and a Final Approval Order is entered. 

Affidavits in support of these fees and costs, based upon Class Counsels’ current

hourly rates, will be provided to the Court at the final approval hearing. Defendants’

counsel, after negotiating the amount of fees in this case, has agreed not to contest

Class Counsel’s rates or the amount of fees sought.

e. If the Settlement is not given final approval for any reason, or the Effective Date does

not occur, or the Agreement is rescinded and terminated, the Parties shall be restored

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United States District Court

For the Northern District of California

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to their respective positions in the Action as of the date the Settlement Agreement

was effective. In such event, the terms and provisions of the Agreement shall have

no further force and effect with respect to the Parties, shall be deemed to be without

prejudice in any way to the position of the Parties with respect to this Action or any

other action, and shall not be used in the Action or in any other proceeding for any

purpose, except as provided in the Agreement or herein. 

3. Settlement Hearing. A Settlement Hearing will be held on Monday, June 26, 2006,

at 9:00 a.m. at which time the Court will determine whether the Settlement of the Action, including

Class Counsel’s Attorneys’ Fees Application, should be finally approved as fair, reasonable, and

adequate and whether the Judgment and Order of Dismissal with Prejudice (the “Judgment”) should

be entered. The Court may adjourn or continue the Settlement Hearing without further notice to the

Settlement Class.

4. Form and Content of Notice. The Court approves, as to form and content, for

distribution to the Class Members the Notice in the form attached as Exhibit B to the Joint Motion

for Preliminary Approval. 

5. Mailed Notice. Defendants shall cause the Notice to be sent to Class Members with

Accessible Contact Information within 20 days after the Preliminary Approval Order is entered

through the use of Settlement Administrator First Class, Inc. Defendants’ counsel shall file with the

Court and serve upon Class Counsel, no later than 5 business days prior to the Final Approval

Hearing, an affidavit or declaration from the Settlement Administrator stating that the mailings have

been completed in accordance with the terms of this Preliminary Approval Order.

6. Best Practicable Notice. The Court finds that dissemination of the Notice in the

manner described herein constitutes the best notice practicable under the circumstances to potential

Class Members and complies fully with Federal Rule of Civil Procedure 23, any and all substantive

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United States District Court

For the Northern District of California

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and procedural due process rights guaranteed by the United States Constitution, and any other

applicable law. No further notices to the class members are required.

7. Requests for Exclusion. Any Person may seek to be excluded from the Settlement, as

explained in the Class Notice. Any Person so excluded shall not be bound by the Settlement and

shall not be entitled to any of its benefits. To be timely, a request for exclusion must be sent to the

Settlement Administrator and be received no later than the Opt-Out Date. No later than 5 business

days before the Final Approval Hearing, Counsel shall file and serve a list of all individuals or

entities who timely and effectively request exclusion.

8. Objections. Any Class Member who objects to the Settlement shall have a right to

appear and be heard at the Settlement Hearing provided that such person files with the Court and

delivers to designated Class Counsel and Defendants’ Counsel a written notice of objection

identifying, in writing, specific reasons for the objection. The objection must be no more than 15

pages and must be received at least 14 business days prior to the Final Approval Hearing. Class

Counsel and Defendants’ Counsel may, but need not, respond to the objections, if any, by means of

a memorandum of law, filed and served no later than 5 business days prior to the Final Approval

Hearing. Only Class Members who have filed and delivered valid and timely written notices of

objection will be entitled to be heard at the Final Approval Hearing, unless the Court orders

otherwise. Any Class Member who does not make his or her objection in the manner provided shall

be deemed to have waived such objection and shall forever be foreclosed from making any objection

to the fairness, reasonableness, or adequacy of the Settlement or the award of Attorneys’ Fees to

Class Counsel, unless otherwise ordered by the Court.

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United States District Court

For the Northern District of California

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9. Defendants’ Denial of Liability. The Court notes that Defendant denies any liability

to Plaintiffs or to the Class for any matter whatsoever. Without conceding any infirmity in their

defenses, and while continuing to deny all allegations of liability, Defendants consider it desirable

that the Action be dismissed and that the claims against Defendants be released, on the terms set

forth herein, in order to avoid further expense, dispose of burdensome and protracted litigation and

put to rest all claims which have or could have been asserted against Defendants arising from the

acts, transactions, or occurrences alleged in the Action.

10. Stay of Discovery and Litigation. All discovery and other proceedings in the Action

are stayed until further order of the Court, except as may be necessary to implement the Settlement

or comply with the terms of the Agreement.

11. Injunction. The Court hereby bars and enjoins all Class Members, except those who

have timely and effectively requested exclusion, from instituting, or prosecuting any action, or

proceeding, whether class or individual, against Defendants for liability in any way related to,

arising out of, or based upon the Released Claims, unless and until the Agreement is terminated.

12. Extension of Deadlines. The Court may, for good cause, extend any of the deadlines

set forth in this Order without further notice to the Class.

13. Deadline for Opt-Outs. To be legally effective, all requests for exclusion described in

paragraph 7, above, must be received by June 5, 2006.

14. Deadline for Objections. Class Member Objections, as described in paragraph 8

above, must be delivered to Class Counsel and Defendants’ Counsel and filed with the Court on or

before June 5, 2006. Objections not filed and served in a timely manner shall be deemed waived.

Case 5:05-cv-00274-JW Document 30 Filed 03/28/06 Page 5 of 7
United States District Court

For the Northern District of California

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15. Deadline for Submitting Claim Forms. Class members who wish to receive their cash

recovery in accordance with the Settlement Agreement must send in a claim form. The claim form

must be received by the Settlement Administrator on or before June 5, 2006 in order to be deemed

valid.

Dated: March 28, 2006 

JAMES WARE

United States District Judge

Case 5:05-cv-00274-JW Document 30 Filed 03/28/06 Page 6 of 7
United States District Court

For the Northern District of California

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THIS IS TO CERTIFY THAT COPIES OF THIS ORDER HAVE BEEN DELIVERED TO:

Brian Lewis Bromberg brian@bromberglawoffice.com

Lance A. Raphael lar@caclawyers.com

Maureen Ann Harrington mharrington@mghhsf.com

Ronald Wilcox ronaldwilcox@post.harvard.edu

Dated: March 28, 2006 Richard W. Wieking, Clerk

By: /s/ JW Chambers 

Melissa Peralta

Courtroom Deputy

Case 5:05-cv-00274-JW Document 30 Filed 03/28/06 Page 7 of 7