Bassett v. Credit Management Services, Inc.
8:17-cv-00069
| D. Neb. | Aug 6, 2019Background
- Plaintiff Kelly M. Bassett (individually and as estate representative) brought a class action under the FDCPA and Nebraska Consumer Protection Act against Credit Management Services, Inc. (CMS) and Jason Morledge.
- Parties negotiated a class settlement after a magistrate-led settlement conference; parties filed a Class Action Settlement Agreement and obtained preliminary approval on April 9, 2019.
- The court-approved notice was mailed to 3,729 class members; no timely objections or opt-outs were received.
- Plaintiff moved for approval of attorneys’ fees and costs ($135,000) and a $7,500 incentive award; the motion was unopposed.
- A final fairness hearing was held August 5, 2019; the magistrate judge recommended final approval, finding the settlement fair, reasonable, and adequate, and approved the requested fees and incentive award.
- Proposed final order would certify the settlement class, award $90,000 to the class (pro rata), $7,500 to the named plaintiff, direct undistributed funds to cy pres, award $135,000 in attorneys’ fees/costs, vacate prior summary-judgment order, and dismiss the action with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the settlement is fair, reasonable, and adequate for final approval | Settlement provides meaningful relief to class, negotiated at arm’s length, no objections | CMS contended the settlement resolves disputed claims without admission of liability | Settlement approved as fair, reasonable, and adequate; recommended final approval |
| Whether class notice and opt-out procedures satisfied Rule 23 | Notice plan provided best practicable notice; no opt-outs or objections show adequacy | CMS complied with preliminary order to effectuate notice | Notice deemed adequate under Rule 23(c)(2)(B) and due process |
| Whether requested attorneys’ fees and costs are reasonable | Counsel submitted lodestar records and sought $135,000 consistent with settlement | CMS did not oppose the fee request | Fee award of $135,000 found reasonable and recommended for approval |
| Whether incentive award to class representative is appropriate | Requested $7,500 for time and effort serving the class | CMS did not oppose incentive award | $7,500 incentive award found fair and reasonable and recommended for approval |
Key Cases Cited
- Prof’l Firefighters Ass’n of Omaha, Local 385 v. Zalewski, 678 F.3d 640 (8th Cir. 2012) (factors for evaluating class settlement fairness)
- In re Wireless Tel. Fed. Cost Recovery Fees Litig., 396 F.3d 922 (8th Cir. 2005) (factors for assessing class settlement)
- Petrovic v. Amoco Oil Co., 200 F.3d 1140 (8th Cir. 1999) (public policy favors settlement; courts approach settlements with a presumption in their favor)
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (lodestar method for calculating reasonable attorneys’ fees)