Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_05-cv-02133/USCOURTS-caed-2_05-cv-02133-6/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 

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UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

ROBERT W. GALBRAITH individually 

and on behalf of others similarly situated, 

 Plaintiff, 

v. 

RESURGENT CAPITAL SERVICES 

SHERMAN FINANCIAL GROUP LLC, 

 Defendant. 

Case No. 2:05-CV-02133-KJM 

PRELIMINARY APPROVAL ORDER 

A. This matter coming before the Court on the Parties’ Joint Application for 

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

Plaintiff Robert W. Galbraith, and Defendants, Resurgent Capital Services LP and Sherman 

Financial Group LLC, (collectively “Defendants”), which is attached to the Joint Application 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. Pursuant to the Settlement Agreement, Defendants agree to certification of a class 

action as a Rule 23(b)(3) class with class notice provided to the class members as described in 

the Settlement Agreement by first class mail; 

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D. Pursuant to the Settlement Agreement, Defendants will mail the Notice and pay 

all costs for providing Notice to the class; 

IT IS HEREBY ORDERED:

1. Pursuant to Rule 23, this case is certified under Rule 23(b)(3) as a class action 

against Defendants. 

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

reasonableness and grants preliminary approval to it. The Class Action Settlement Agreement 

(Exhibit A to the Joint Application for Preliminary Approval) is preliminarily approved. 

3. For the purposes of settlement, the parties stipulate to the certification of a class 

defined as: 

(a) all persons with addresses within the State of California, (b) who were sent a 

written communication by Resurgent Capital Services, LP, (c) regarding a 

consumer debt, (d) which included an affidavit signed by a non-lawyer and 

contained a signature block indicating that the person signing the affidavit is an 

“attorney-in-fact” in the same form of Exhibit 1 attached to the Complaint filed in 

Robert W. Galbraith v. Resurgent Capital Services LP and Sherman Financial 

Group, LLC, Case No. 2:05-CV-02133-DFL-KJM, (e) which was represented to 

be verification of the consumer recipient’s debt, (f) which were not returned 

undelivered by the United States Postal Service, and (g) which were mailed on or 

after October 21, 2004, up to the date on which the Court grants preliminary 

approval to the settlement. Excluded from the Class are Defendants, their 

employees and agents and persons that were never sent a letter in the form of 

Exhibit 1 to Plaintiff’s Complaint. 

The parties represent that the Class described above includes approximately 3,618 

persons, which includes 351 persons that have paid off their accounts at issue. 

4. Defendants shall be responsible for all costs associated with the preparation and 

mailing of the Notice as described herein, and shall provide Plaintiff’s counsel with Notice 

Process Status Updates and a Class List as set forth in The Class Action Settlement Agreement. 

5. Hyde & Swigart and the Law Offices of Douglas J. Campion are appointed as 

class counsel. 

6. A final approval hearing on the fairness and reasonableness of the Agreement and 

whether final approval shall be given to it, the incentive payment to Plaintiff, and the request for 

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fees and expenses by counsel for the class will be held before this Court, in courtroom no. 26 at 

501 I Street, 8th Floor, on April 9, 2008 at 10:00 am. 

7. The Court approves the proposed form of notice to the class, with non-substantive 

modifications as shown in the attachment to this order, incorporated herein. The notice shall be 

directed to the last known address of the class members as shown on Defendants’ records. 

Defendants will mail, or cause to be mailed notice to class members within thirty (30) days of 

filing of the Preliminary Approval Order. Defendants will have the notice sent by First Class, 

Inc. Specialized Mailing Services. Any notice that is returned with a forwarding address will be 

re-mailed to the forwarding address. No later than fifteen (15) days prior to the date set for the 

Final Approval hearing, a declaration shall be filed with the Court by the entity responsible for 

the mailing of the Notice to the Class attesting to the facts in support of such mailing in 

compliance with this Order. 

8. The Court finds that mailing of the class notice, in the form attached to this order, 

and the other measures specified above to locate and notify members of the class is the only 

notice required and that such notice satisfies the requirements of due process and Fed. R. Civ. P. 

23(c)(2)(B). 

9. Class members shall have until Friday, March 14, 2008 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 Plaintiff’s Counsel as set forth in the Notice postmarked by 

that date. Any class members who wish to object to the settlement must submit an objection in 

writing by March 14, 2008 to the Clerk of the United States District Court for the Eastern 

District of California, Sacramento Division, and serve copies of the objection on counsel for 

Plaintiff, postmarked by that date. Any objection must include the name and number of the case 

and a statement of the reasons why the objector believes that the Court should find that the 

proposed settlement is not in the best interests of the class. If the objector intends to object in 

person at the hearing, they must notify the Clerk of the Court of that intention in writing by

March 14, 2008 and serve a copy of that notice on Plaintiff’s counsel postmarked by that date. 

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The counsel identified in the Notice shall share information on communications from class 

members with all other counsel identified in paragraph 29 of the Class Settlement Agreement 

Recitals submitted to the Court on December 21, 2007. 

10. The Court shall also determine at the Final Approval Hearing whether to 

approve the $2,000 incentive payment to the Class Representative and whether to approve 

attorneys’ fees and costs payable by Defendants to Class Counsel in the amount agreed upon by 

the Class Representative and counsel of $40,000. 

11. The Final Approval Hearing may, from time to time and without further notice 

to the Settlement Class, be continued or adjourned by order of the Court. 

12. The Parties are hereby authorized to utilize all reasonable procedures in 

connection with the administration of the Settlement that are not materially inconsistent with 

this Order or the terms of the Settlement Agreement. 

13. Capitalized terms used and not otherwise defined herein will have the meanings 

set forth in the Settlement Agreement. 

DATE: January 8, 2008. 

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