Niemiec Declaration - the Insurance Brokerage Antitrust Litigation by wuzhenguang

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									Case 2:04-cv-05184-CCC-PS Document 2052-2 Filed 06/21/12 Page 1 of 7 PageID: 46679



                             UNITED STATES DISTRICT COURT
                                DISTRICT OF NEW JERSEY


                                                        :
  IN RE: INSURANCE BROKERAGE                            :      MDL No. 1663
  ANTITRUST LITIGATION
                                                        :      Civil No. 04-5184 (CCC)
  APPLIES TO ALL ACTIONS                                :
                                                        :
                                                        :
  IN RE: EMPLOYEE-BENEFITS                              :      Civil Action No. 05-1079 (CCC)
  INSURANCE BROKERAGE ANTITRUST
  LITIGATION                                            :
                                                        :
  APPLIES TO ALL ACTIONS                                :
                                                        :


                        DECLARATION OF ROBIN NIEMIEC
      IN SUPPORT OF A SECOND DISTRIBUTION OF THE NET CASH SETTLEMENT
                   AMOUNT TO SETTLEMENT CLASS MEMBERS


  I, Robin Niemiec, declare as follows:


         1.     I am a Client Service Director for Rust Consulting, Inc. (“Rust”). I am over 21

  years of age and am not a party to the above-captioned action (the “Action”). I have personal

  knowledge of the facts set forth below, and if called as a witness, could and would testify

  competently and to those facts.


         2.     I respectfully submit this Declaration in order to provide the Court and the parties

  Stipulation of Settlement, dated July 28, 2006, as amended (the “Settlement Agreement”) entered

  into by the Plaintiffs1 and the Zurich Defendants in the Action with information regarding the




  1
      Unless otherwise stated, all capitalized terms have the meaning ascribed to them in the
  Settlement Agreement. For the Court’s convenience, a compilation of the defined terms
  appearing in the Settlement Agreement is annexed to the Notice of Motion relating to the Motion
  as Exhibit A.
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  distribution of the Net Cash Settlement Amount to date and in support of Class Counsel’s

  Motion for a Second Distribution (the “Motion”).


          3.     Complete Claim Solutions, LLC (“CCS”) was appointed Administrator by Order

  dated November 8, 2006 (Docket No. 758). In February 2009, CCS began doing business as

  Rust.


          4.     Rust was retained to process, evaluate, and audit completed and submitted Claim

  Forms; calculate the pro rata share of the Net Cash Settlement Amount for each Settlement Class

  Member, and distribute the Net Cash Settlement Fund to Settlement Class Members. (See

  Declaration of Eric J. Miller In Support of Motion for Distribution of the Net Cash Settlement

  Amount from the Zurich Settlement, dated September 29, 2010, previously filed with the Court.)


                       DESCRIPTION OF INITIAL DISTRIBUTION ACTIVITY

          5.     As of March 1, 2012, Settlement Class Members are continuing to cash settlement

  checks. The counts and amounts in this Declaration reflect activity through January 31, 2011.

  The Net Cash Settlement Amount will be finalized prior to the second distribution.


          6.     Pursuant to this Court’s Order Granting Class Counsel’s Motion for Distribution

  of Net Cash Settlement Amount, Rust caused Bank of America to issue 2,029,085 checks to

  Settlement Class Members.


          7.     Subsequently and through January 16, 2012, Rust has re-issued checks to Persons

  who contacted Rust or Class Counsel requesting that their checks be re-issued due to updated

  addresses, account name changes and other operation of law issues, such as changes in a

  beneficiary due to death, etc.



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         8.      Since the initial distribution, Rust has received and responded to numerous

  inquiries from Settlement Class Members concerning the Settlement, Net Cash Settlement

  Amount, distributions from the Net Cash Settlement Amount and status of reissues.


         9.      As of February 17, 2012, approximately 79.40% of the Net Settlement Fund has

  been successfully distributed on a pro rata basis to Settlement Class Members. The balance

  remaining in the Net Cash Settlement Amount distribution checking account, as of February 7,

  2012, is $27,190,974.99 (the “Net Settlement Fund Balance”).


         10.     The Net Settlement Fund Balance, as described below, includes stale-dated

  uncashed checks and undeliverable checks; and stale-dated checks which were refused and

  returned by the Claimant to Rust.


                  RECOMMENDATIONS FOR A SECOND DISTRIBUTION

         11.     It should be noted that from the date of the initial distribution (December, 2010)

  to date, Rust has been reissuing checks as a result of:


                 (a)     Settlement Class Members returning a stale-dated check and requesting

                         the issuance of a new check;


                 (b)     Checks being returned as undeliverable by the U.S. Postal Service and

                         Rust utilizing the services of an address locator service, to obtain an

                         updated address for the Claimant;


                 (c)     Claimants indicating the check was never received (and not returned to

                         Rust as undeliverable by the U.S. Postal Service), were asked to request a




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                         new check in writing in order to avoid fraudulent requests and to allow us

                         to place a stop payment on the original check; and


                 (d)     Claimants requesting a new check by ‘operation of law’ (e.g., account

                         name or company name change, beneficiary due to death, etc.).


         12.     Approximately 1,019,810 checks remain uncashed and are now stale, were
  returned undeliverable with no further addresses found, or Claimants returned funds. Class
  Counsel is requesting that the total amount of these checks, approximately $27,190,974.99,
  become available for a second distribution, and that these claims represented by these checks be
  determined ineligible to receive any further proceeds from the Net Cash Settlement Amount.
  Class Counsel and Rust recommend a second distribution. Rust will issue from the Net
  Settlement Fund Balance (approximately $27,190,974.99, less fees and expenses as described
  below in Paragraph 16) a second distribution check on a pro rata basis to Claimants who cashed
  their checks from the initial distribution.


         13.     Pursuant to the Plan of Allocation, Settlement Agreement and Approval Order:,

  Rust will modify the allocation of the Net Settlement Fund Balance to pay:


                  (a)     a de minimis payment of $4.10 for each Non-Excess Claimant; and


                  (b)     a minimum payment of $112.25 for the Excess Claimants


         14.     Pursuant to the Plan of Allocation, Settlement Agreement and Approval Order,

  Rust will also modify the allocation of the Net Settlement Fund Balance for the Conspiracy

  Claimants, approximately $2.4 million, to allow for a cy pres distribution to organizations agreed

  upon by the Settling Parties and approved by the Court..




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                                Exhibit A 
Case 2:04-cv-05184-CCC-PS Document 2052-2 Filed 06/21/12 Page 7 of 7 PageID: 46685



                                                                                                           Estimate

      625 MARQUETTE AVENUE, SUITE 880                                                              DATE:                        04/03/12
      MINNEAPOLIS, MN 55402
      P 612.359.2000 I F 612.359.2050
      WWW.RUSTCONSULTING.COM
      FEDERAL ID #: 41-1813634



                                                                 PROJECT
                               Insurance Brokerage Antitrust Litigation - Zurich Settlement
                                  Estimate to Complete for Project through October 2012

      ESTIMATED PROFESSIONAL FEES
      Project Management                                                                                             $       4,950.00
      Techincial Consulting                                                                                                  7,425.00
      Quality Assurance                                                                                                      4,424.00
      Financial/Administration                                                                                               1,040.00
      Check Processing                                                                                                      22,800.00
      Miscellaneous                                                                                                          6,781.00
                                                                                                      SUBTOTAL              47,420.00
      ESTIMATED EXPENSES
      Printing, stuffing and mailing checks and letters, reissues                                                           39,780.00
      Check Processing Fees                                                                                                 46,800.00
      Estimated postage for letters, checks; undeliverables & reissues                                                      98,800.00
      Call Center/Telecommunications/Correspondence                                                                         18,600.00
      Shredding/Storage/Supplies                                                                                             8 000 00
                                                                                                                             8,000.00
      Photocopies/Faxing/Printing                                                                                              500.00
      Website Hosting                                                                                                        1,500.00
      Bank Reconciliation (12 months)                                                                                        1,000.00
      Tax Preparation and filing (2012)                                                                                      2,000.00
      Post Office Box Rental (1 year)                                                                                          600.00
                                                                                                      SUBTOTAL             217,580.00

                                                                           TOTAL ESTIMATE TO COMPLETE                $     265,000.00




 MINNEAPOLIS, MN   FARIBAULT, MN   MELVILLE, NY   PALM BEACH GARDENS, FL   PHILADELPHIA, PA   SAN FRANCISCO, CA   SEATTLE, WA   WASHINGTON, DC

								
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