Source: https://docs.justia.com/cases/federal/district-courts/nevada/nvdce/2:2010cv01508/75900/57
Timestamp: 2018-02-19 22:20:58
Document Index: 455841648

Matched Legal Cases: ['§ 21', '§13', '§ 21', '§ 21', '§ 21', '§ 21']

ORDER that the notices of settlement for Harris v. U.S. Physical Therapy, Inc. :: Justia Dockets & Filings
Justia Dockets & Filings Ninth Circuit Nevada Nevada District Court Harris v. U.S. Physical Therapy, Inc. Filing 57
ORDER that the notices of settlement (#51-2 Exhibit A) must be distributed as outlined in this Order. FURTHER ORDERED that a Final Fairness Hearing is scheduled for 12/7/2012 at 01:30 PM in LV Courtroom 3A before Magistrate Judge Cam Ferenbach. Signed by Magistrate Judge Cam Ferenbach on 9/18/12. (Copies have been distributed pursuant to the NEF - MMM)
1 2 3 UNITED STATES DISTRICT COURT 4 DISTRICT OF NEVADA 5 *** 6 7 WELTONIA HARRIS 8 Plaintiff, 2:10-cv-01508-JCM -VCF 9 vs. ORDER U.S. PHYSICAL THERAPY, INC., et al., (Remand from District Judge: Final Fairness 10 11 Defendants. Hearing #54) 12 13 Before the court is the matter of Harris v. U.S. Physical Therapy, Inc., et al (Case No. 14 2:10-cv-01508-JCM -VCF). 15 Background 16 On May 31, 2012, plaintiff Weltonia Harris filed a motion for preliminary approval of class 17 action settlement and related orders. (#47 and #48). In plaintiff’s motion, she asked this court to take 18 the following steps in the settlement approval process: (1) grant preliminary approval of the settlement 19 agreement, including the settlement relief to the class and the fees and costs payment to plaintiff’s 20 counsel; (2) provisionally certify the proposed settlement class and appoint Weltonia Harris as 21 settlement class representative; (3) appoint as class counsel the law firm of Caddell & Chapman; (4) 22 approve the proposed notice plan and the forms of settlement notice and order provision of such notice; 23 and (5) schedule the final fairness hearing and related dates as proposed by the parties. (#48). On June 24 14, 2012, defendant U.S. Physical Therapy, Inc, filed a response to plaintiff’s motion, stating that it 25 “agrees that the relief sought on [p]laintiff’s [motion] is appropriate” and joins in her request. (#52). 1 2 On July 18, 2012, the undersigned Magistrate Judge issued a report and recommendation 3 (hereinafter “R&R”) finding that the settlement is reasonable, fair, and adequate, and recommending 4 granting the relief sought in plaintiff’s motion (#47 and #48). (#53). The R&R recommended that the 5 District Judge grant preliminary approval of the proposed settlement and certify the class. Id. The R&R 6 also recommended that the District Judge order notice of settlement be distributed in accordance with 7 the terms of the settlement agreement (#51-1 Exhibit 1) and schedule a final fairness hearing “for a date 8 that would provide class members enough advance notice to be able to attend if they desire.” Id. Any 9 objection to the R&R was due by July 18, 2012. Id. No objection was filed. 10 On August 9, 2012, the District Judge issued an order adopting the R&R and granting the motion 11 for preliminary approval of class action settlement and related orders (#47 and #48), thereby (1) 12 granting preliminary approval of the settlement agreement (#51-1 Exhibit 1), including settlement relief 13 to the class members of $1,000, an incentive award to plaintiff Harris of $1,5000, and a fee payment to 14 plaintiff’s counsel of $85,977.50, plus reasonable and necessary expenses and costs estimated to be no 15 more than $8,608.421, (2) certifying the proposed class of 47 members and appointing plaintiff Harris as 16 settlement class representative, (3) appointing the law firm of Caddell & Chapman as class counsel, and 17 (4) approving the proposed notice plan (#51-1 Exhibit 1 Section (3)) and the proposed form of 18 settlement notice (#51-2 Exhibit A). (#54). The District Judge also remanded the final fairness hearing 19 and the scheduling therefor to the undersigned Magistrate Judge. Id. 20 Remand for Distribution of Notice and Scheduling Final Fairness Hearing 21 The Manual for Complex Litigation describes a three-step procedure for approval of class action 22 settlements: (1) preliminary approval of the proposed settlement at an informal hearing; (2) 23 dissemination of mailed and/or published notice of the settlement to all affected class members; and (3) 24 a “formal fairness hearing” or final settlement approval hearing, at which class members may be heard 25 1 Plaintiff’s counsel must submit an application for attorneys’ fees with the motion for final approval. 2 1 2 regarding the settlement, and at which evidence and argument concerning the fairness, adequacy, and 3 reasonableness of the settlement may be presented. MANUAL FOR COMPLEX LITIGATION 4 (FOURTH) § 21.632 (2008) (hereinafter “MANUAL”). 5 A. Preliminary Approval 6 As the District Judge adopted the R&R and granted the preliminary approval of the proposed 7 settlement, the first step is satisfied. (#54); See MANUAL §13.14 (stating that a formal hearing is not 8 required at the preliminary approval stage, and the court may grant the parties’ motion upon an informal 9 request by the settling parties). 10 B. Dissemination of Mailed Notice 11 In accordance with Rule 23(e)(1)(B), step two requires “the court to ‘direct notice in a reasonable 12 manner to all class members who would be bound by a proposed settlement, voluntary dismissal, or 13 compromise’ regardless of whether the class was certified under Rule 23(b)(1), (b)(2), or (b)(3).” 14 MANUAL §§ 21.312 and 21.632. Rule 23(e)(1)(B) requires notice in a reasonable manner to “all class 15 members who would be bound by a proposed settlement, voluntary dismissal, or compromise.” Id. 16 “[I]ndividual notice is required, where practicable, in Rule 23(b)(3) actions.” Id. “In an order 17 preliminarily approving the settlement under Rule 23(e), the judge sets the date for providing notice of 18 the proposed settlement. This order, as well as the notice, should establish the time and place of a public 19 hearing on the proposed settlement and specify the procedure and timetable for opting out, filing 20 objections, and appearing at the settlement hearing.” Id. 21 The “notice should announce the terms of a proposed settlement and state that, if approved, it will 22 bind all class members. If the class has been certified only for settlement purposes, that fact should be 23 disclosed. Even though a settlement is proposed, the notice should outline the original claims, relief 24 sought, and defenses so class members can make an informed decision about whether to opt out.” Id. 25 Plaintiff attached the proposed form of notice of the settlement to the settlement agreement, which 3 1 2 complies with the requirements outlined above. (#51-2 Exhibit A). The proposed form of notice was 3 approved by the District Judge. (#54). As the fairness hearing and the scheduling thereof was 4 remanded to the undersigned Magistrate Judge, and § 21.312 requires the judge to set the date for 5 providing notice and “the time and place of the public hearing on the proposed settlement and specify 6 the procedure and timetable for opting out, filing objections, and appearing at the settlement hearing," 7 the undersigned orders that notice be distributed as follows: 8 (1) On or before September 21, 2012, defense counsel must provide the law firm of 9 Caddell & Chapman with updated contact information from its personnel files for 10 each of the 47 class members. 11 (2) On or before September 26, 2012, the law firm of Caddell & Chapman must send 12 each class member, by First Class Certified Mail, the court approved notice of the 13 settlement (#51-2 Exhibit A)2 providing the time and place of the final fairness 14 hearing and providing for an objection date of October 15, 2012, and an opt-out 15 and intention to appear date of November 7, 2012. 16 (3) On or before November 15, 2012, the law firm of Caddell & Chapman must 17 respond to any class member objections or inquiries regarding the settlement, the 18 terms thereof, and/or the final fairness hearing. 19 C. Scheduling Final Approval Hearing 20 Step three requires that a “formal fairness hearing” or final settlement approval hearing, at which 21 class members may be heard regarding the settlement, and at which evidence and argument concerning 22 the fairness, adequacy, and reasonableness of the settlement may be presented,” be scheduled for a date 23 that would provide class members enough advance notice to be able to attend if they desire. MANUAL 24 § 21.632. The final fairness hearing is scheduled for December 7, 2012, at 1:30 p.m. in Courtroom 3A. 25 2 As the undersigned will be conducting the final fairness hearing, paragraphs 18 and 19 on page 8 of the notice of settlement (#51-2 Exhibit A) must be amended to read “Judge Ferenbach” in place of “Judge Mahan.” 4 1 2 The court finds that, in accordance with § 21.632, this date provides class members enough advance 3 notice to be able to attend if they desire. Id. 4 Accordingly, and for good cause shown, 5 IT IS HEREBY ORDERED that the notices of settlement (#51-2 Exhibit A) must be distributed 6 as outlined above. 7 IT IS FURTHER ORDERED that a final fairness hearing is scheduled for December 7, 2012, at 8 1:30 p.m. in Courtroom 3A. 9 DATED this 18th day of September, 2012. 10 _________________________ CAM FERENBACH UNITED STATES MAGISTRATE JUDGE 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 5