Notice of Proposed Class Action Settlement and Fairness Hearing
Superior Court of New Jersey Mercer County: Law Division Docket No.: L-1947-03 This is a notice to inform you about a settlement in a lawsuit brought against a group of automobile dealerships for allegedly overcharging customers for title and registration fees, and for other claimed violations. You may be entitled to the benefits of the Settlement. This Notice describes the Settlement and informs you of your rights. Please take time to read this Notice carefully – If you take no action, you will automatically remain in the Class and receive the benefits of the Settlement if approved. If you want to exclude yourself from the litigation and not receive the benefits of the Settlement, you must read and follow the instructions in section 13 of this Notice. Do not be alarmed. You are NOT being sued. A New Jersey court authorized this Notice. This is not a solicitation.
Summary What is the purpose of this Notice?
This Notice is to inform you of a proposed Settlement in a Class Action lawsuit against the following: Robert Burt; Robert Burt d/b/a Kent Motorcar Company, Inc., Honda of Princeton, Inc., Sports & Specialist Cars, Inc., SASC Inc., Saab Authorized Sales & Service; Kent Motorcar Company, Inc., d/b/a Honda of Princeton, f/k/a Princeton Honda, Inc.; Sports & Specialist Cars, Inc., a/k/a SASC Inc., and Saab Authorized Sales & Service. Plaintiff Henry Wilson, sued Defendants on behalf of customers who purchased or leased a new or used motor vehicle during the period from July 28, 1997 to December 31, 2003 for the Saab Dealership and during the period August 4, 2000 to December 31, 2003 for the Honda Dealership. He claims that the Defendants (1) overcharged customers for DMV Defendants registration and/or title fees; (2) charged deceptive documentary service fees; and (3) failed to provide proper notices on sales documents. This class action seeks to recover money damages for Class Members and to end the challenged practices. You are a Member of this Class if this Notice was addressed to you. If you believe you are a Class Member and a Notice was not addressed to you, please call 1-800-419-5275 for instructions. You do not have to do anything to remain in the Class and obtain the benefits described in this Notice if the Settlement is approved.
What is this lawsuit about?
Am I a member of the Class? Can I exclude myself from the Settlement?
Yes. Please read this Notice for further details.
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What this Notice Contains
Basic Information ............................................................................................................................PAGES 1. What is this lawsuit about? 2. What is a class action and who is involved? 3. Why did I get this Notice? 4. Why is there a settlement? The Claims 5. 6. 7. 8. 9. in the Lawsuit .................................................................................................................PAGES What are the issues in this lawsuit? What did the Plaintiff ask for? Has the Court decided who is right? Is there any money available now? Who is representing the Class in this case? 2-3
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The Terms of the Settlement...............................................................................................................PAGES 10. What is the proposed settlement? Your Rights 11. 12. 13. 14. 15. 16. 17. and Options....................................................................................................................P AGES How do I participate in the Settlement? What claims are released if I participate in the Settlement? What if I want to exclude myself from the Class and the Settlement? What if I object to the terms of the Settlement? What is the difference between objecting to the Settlement and asking to be excluded from the Class? What will happen at the Fairness Hearing? How will I know if the Settlement is approved?
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Additional Information ....................................................................................................................P AGE 18. Where can I get more details about the case? 19. What if my address or phone number changes?
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Basic Information
1. What is this lawsuit about? Plaintiff Henry Wilson brought this class action lawsuit on behalf of himself and all persons who purchased or leased an automobile from Kent Motorcar Company, Inc., d/b/a Honda of Princeton, and Sports & Specialist Cars, Inc., a Saab dealership (“Defendants”) during the period from July 28, 1997 to December 31, 2003 for the Saab Dealership and during the period from August 4, 2000 to December 31, 2003 for the Honda Dealership (the “Class Period”). Plaintiffs allege that Defendants: (1) overcharged customers for DMV registration and/or title fees; (2) charged deceptive documentary service fees; and/or (3) failed to provide proper notices on sales documents. Defendants deny that they violated any law or committed any wrongdoing and disagree with some of the Trial Court’s decisions. Although the Trial Court in this case has granted summary judgment in favor of the Plaintiff and Class on some issues, the Appellate Court has not yet ruled on these issues. In a different case, and on issues for which the Trial Court in this case has not yet been asked to make a decision, Gross v. TJK Automotive Co., LLC, 380 NJ Super. 176 (App. Div. 2005), the New Jersey Appellate Court recently decided in favor of a defendant dealership finding that the specific documentary fees it charged for “clerical expense fee” and “messenger fee” did not violate the Consumer Fraud Act. Plaintiffs in this case believe that the factual circumstances in this case are different and more compelling than the factual circumstances in the Gross case. 2. What is a class action and who is involved? In a class action lawsuit, a person or persons called the “Class Representative(s)” (in this case, Henry Wilson) sues on behalf of others who have similar claims. These people together are a “Class” or “Class Members.” The people who sue are called the Plaintiffs. Defendants are the parties being sued. Since everyone in the Class has the same claims against the Defendants, one court can resolve the issues for everyone in the Class – except for those customers who choose to exclude themselves from the Class. The Trial Court decided that Mr. Wilson was an adequate representative for all class members even though he did not purchase a vehicle from the Saab Dealership.
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3. Why did I get this Notice? You received this Notice because Defendants’ records show that you purchased or leased a new or used vehicle from the Defendant dealerships during the class period. 4. Why is there a settlement? Both sides agreed to a settlement before going to trial in order to avoid the cost of a trial and appeals, and to ensure that the affected customers will receive compensation. The Class Representative and his lawyers think the proposed settlement is in the best interest of all Class Members. By settling this lawsuit, Defendants do not admit any wrongdoing. The Claims in the Lawsuit 5. What are the issues in this lawsuit? Plaintiff alleges that Defendants overcharged customers for registration and title fees. Plaintiff also alleges that a separate “documentary fee” was deceptive and that Defendants failed to provide consumers with proper notice of their rights. Plaintiff claims that as a result of these actions Defendants (1) violated the New Jersey Consumer Fraud Act; (2) violated the New Jersey Truth-in-Consumer Contract, Warranty and Notice Act; (3) committed common law fraud and equitable fraud; (4) failed to deal fairly and in good faith with the Class; and (5) were unjustly enriched as a result of these violations. The parties disagree on the existence and extent of any overcharges assessed by Defendants. Defendants deny all of these claims and offered a number of defenses. Defendants also rely on the Appellate Court’s decision in the Gross case mentioned in Paragraph #1 to support its position that some of Plaintiff’s claims regarding documentary fees do not violate the Consumer Fraud Act. 6. What did the Plaintiff ask for? The Plaintiff sought money damages for the Class, including himself. He also sought to have Defendants end the challenged practices. 7. Has the Court decided who is right? The Court has made a few rulings in the case. On June 10, 2005, the Court ruled as follows: “ORDERED that partial summary judgment against all Defendants except Robert Burt, individually is granted as follows: 1. Defendants overcharged Plaintiff and similarly situated Class Members for official registration and title fees and failed to disclose such overcharges; 2. Defendants violated N.J.A.C. 13:45A-26B.2(A)(2)(i) by failing to disclose overcharges for official title and registration fees, because such overcharges constitute unitemized documentary service fees, as defined by N.J.A.C. 13:45A-26B.1; 3. By overcharging Plaintiff and similarly situated Class Members for official title and registration fees, Defendants violated the Consumer Fraud Act, N.J.S.A. 56:8-1 et seq. because the overcharge is an unconscionable business practice and because violating Automobile Sales Regulations (N.J.A.C. 13:45A-26B.2(a)(2)(i)) is a per se violation of the Consumer Fraud Act; 4. Defendants shall pay to Plaintiff and to each Class Member who was overcharged for official title and registration fees treble the amount of the overcharge pursuant to N.J.S.A. 56:8-19; 5. Defendants violated N.J.A.C. 13:45A-26B.2(a)(2)(iii) by providing to Plaintiff and similarly situated class members a sales document that did not provide the required notice in the type size mandated by the regulation; 6. Defendants’ violation of N.J.A.C. 13:45A-26B.2(a)(2)(i) & (iii) are violations of the Truth-in-Consumer Contract, Warranty and Notice Act (TCCWNA), N.J.S.A. 56:12-14 et seq.; and
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7. Defendants shall pay to Plaintiff and similarly situated Class Members whose overcharge for official title and registration fees was not itemized in violation of N.J.A.C. 13:45A-26B.2(a)(2)(i) or who received a sales document in violation of N.J.A.C. 13:45A-26B.2(a)(2)(iii), a statutory penalty in the amount of $100.00 pursuant to TCCWNA.” After the Court made this decision, Defendants filed a motion asking the Court to reconsider its decision. Plaintiff’s counsel opposed this motion and filed a separate motion requesting that the Court require Defendants to provide Notice of this case to all Class Members, which Defendants opposed. Both of these motions were subsequently withdrawn and the settlement described herein was reached. If the Settlement is not approved, the case is subject to further proceedings and appeals. Accordingly, there is a possibility that these rulings may be reversed by the Trial Court on a renewed motion for reconsideration, or overruled by the Appellate Court or the New Jersey Supreme Court. Plaintiffs’ other claims (relating to the documentary fee, as mentioned in sections 1 & 5 above) have not yet been determined by the Court. 8. Is there any money available now? Other than the Settlement terms as set forth in paragraph #10 below, no money or benefits are available now because the Court has not yet determined all of the actual damages. Also, if the Settlement is not approved, the case is subject to further proceedings and possible appeals. There is no guarantee that money or benefits will ever be obtained if the Settlement is not approved. 9. Who is representing the Class in this case? The Court has decided that the following lawyers are qualified to represent you and all other Class Members: Andrew R. Wolf Richard Galex Christopher J. McGinn Galex Wolf, LLC 557 Cranbury Rd., Suite 14 East Brunswick, NJ 08816 (732) 257-0550 info@galexwolf.com Steven A. Skalet Gabriel B. Eber Mehri & Skalet, PLLC 1300 19th St., NW, Suite 400 Washington, DC 20036 info@findjustice.com
These attorneys are experienced in handling similar class action cases against other car dealerships. You will not be charged for their services. You may choose to have you own attorney represent you in this matter. If you want to be represented by your own lawyer, you will be responsible for paying his or her fees.
The Terms of the Settlement
10. What is the proposed settlement? Under the terms of the Settlement: 1) For each vehicle purchased or leased from Defendants during the Class Period, Class Members will receive a Cash Certificate redeemable for $35.00 in cash or alternatively for $50.00 in coupon value when combined with the Discount or Service Coupon as indicated below. a) You may turn in the Cash Certificate for an immediate $35.00 payment by presenting the Certificate in person at the Defendant dealership where you purchased or leased your vehicle. Or, you may redeem the $35.00 Cash Certificate by mail to receive payment within 30 days.
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b) Cash Certificates will remain valid for one year and five days from the date the Certificate was mailed to you. c) If you purchased or leased more than one vehicle from Defendants during the Class Period, you will receive one Cash Certificate for each vehicle that you bought or leased. 2) Each Class Member will also receive a Discount/Service Coupon redeemable for either (a) a discount of $225.00 toward the purchase or lease of a vehicle from the dealership where you purchased or leased your vehicle; or (b) a $150 discount towards maintenance, repair, parts or merchandise at any Defendant dealership and at the Lotus Dealership and Mazda Dealership also owned by Robert Burt. a) Discount/Service Coupons will remain valid for three years and five days from the date the Coupon was mailed to you. b) If you purchased or leased more than one vehicle from any Defendant dealership during the Class Period, you will receive one Discount/Service Coupon for each vehicle that you bought or leased. You may not combine Discount Coupons. c) The Discount/Service Coupon may be combined with the Cash Certificate for a Discount Coupon redeemable for $275.00 or a Service Coupon redeemable for $200.00, which will remain valid for three years and five days from the date the Coupons were mailed to you. d) The Service Coupon is reusable in multiple transactions until the coupon’s value falls below $5.00. 3) Defendants will pay all costs of administering the Settlement. 4) Defendants will pay Class Counsel $325,000 for attorney’s fees and will reimburse Class Counsel up to $15,000 for expenses incurred in connection with this litigation. These payments will not reduce the benefits to the Class. 5) Defendants will make an incentive payment of $3,000 to the Class Representative for his efforts on behalf of the Class. 6) The Cash Certificate and Discount/Service Coupon are in exchange for a release of any and all claims a Class Member has or may have had against Defendants related to the claims brought in this lawsuit. 7) Defendants will cease the challenged practices. Plaintiffs will have the right to inspect Defendants’ records to ensure compliance. Based on current information, the Class includes approximately 7,000 members.
Your Rights and Options
11. How do I participate in the Settlement? You do not have to do anything to receive the benefits of this Settlement. You will automatically remain in the Class and, upon judicial approval, receive the benefits of the Settlement. 12. What claims are released if I participate in the Settlement? Persons participating in the Settlement will not be able to sue or continue to sue Defendants as part of any other lawsuit about the same claims that are the subject of this lawsuit. You will be legally bound by all Orders the Court issues and judgments the Court makes in the proposed settlement. If the Court approves this Settlement at the Fairness Hearing, Plaintiffs and each Member of the Class, for themselves, their heirs, successors and assigns shall and will have jointly and severally remised, released, acquitted, and forever discharged Defendants and their successors and assigns of and from any and all actions, causes of action, suits, claims, defenses, covenants, controversies, agreements, promises, damages, judgments, demands, liabilities, and obligations in law or in equity that Plaintiffs and Members of the Class, as defined in this Notice, asserted or could have asserted in connection with the practices described in the Amended Complaint in this action, limited to claims concerning the alleged overcharges for title, registration, and/or license fees, documentary fees, required disclosures pertaining thereto, and for all common law, statutory or other claims relating to these practices, including, but not limited to, claims for fraud, breach of contract, misrepresentation or conspiracy.
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13. What if I want to exclude myself from the Class and the Settlement? To be excluded, you must notify the Clerk of the Court in writing. The request must be signed and include your name, phone number, and address printed below your signature. All requests to be excluded must be mailed to the address below and received on or before May 26, 2006. If a request for exclusion is sent by courier or some other delivery service other than U.S. mail, it must be received by the Court on or before 4:30 pm on May 26, 2006. Clerk of the Superior Court of New Jersey, Mercer County Re: Wilson. v. Robert Burt, et al. Docket No. L-1947-03 175 South Broad Street Trenton, NJ 08608-2401 If your request is received after May 26, 2006, your request will be considered untimely and you will continue to be a member of the Class. You must also send a copy of your request to be excluded to each of the following lawyers:
Attorney for Plaintiffs Andrew R. Wolf Galex Wolf, LLC 557 Cranbury Rd., Suite 14B East Brunswick, NJ 08816 Re: Wilson. v. Robert Burt, et al. Attorney for Defendants Jeffrey M. Pollock Fox, Rothschild LLP 997 Lenox Drive Lawrenceville, NJ 08648 Re: Wilson. v. Robert Burt, et al.
14. What if I object to the terms of the Settlement? You may object to the Settlement, only if you remain in the Class. You or your counsel, should you choose to retain one, must appear at the Fairness Hearing to do so. At the Fairness Hearing, any Class Member may appear in person or through counsel of his or her own choosing, and at his or her own expense, and be heard to the extent allowed by the Court in opposition to the fairness, reasonableness, and adequacy of the settlement, including the payment of Class Counsel fees, reimbursement of expenses and costs and the Class Representative incentive award. In order to make such an appearance in opposition to the Settlement and/or the application for the payment of lawyers’ fees and expenses, you must send a written notice to the Clerk of Court, and to the lawyers representing the parties in this case. These addresses are given above. Your notice of objection must be received on or before on May 26, 2006. If an objection is sent by courier or by some other delivery service other than U.S. mail, it must be received by the Court on or before 4:30 pm on May 26, 2006. The written notice must include notice of your intention to appear, along with a statement that indicates the basis for your opposition and any documentation in support of such opposition. Any and all documents must contain a reference to case number L-1947-03. Any Class Member who does not object in the manner provided above shall be deemed to have waived objection and shall forever be foreclosed from objecting to the fairness, reasonableness, or adequacy of the proposed settlement or payment of Class Counsel fees, reimbursement of costs and expenses, and payment of the Class Representative incentive awards. 15. What is the difference between objecting to the Settlement and asking to be excluded from the Class? Objecting is telling the Court that you disagree with the proposed settlement. You can object, but only if you remain in the Class. Excluding yourself is telling the Court that you don’t want to be part of the Class and do not wish to participate in the Settlement. If you exclude yourself, you have no basis to object because the case no longer affects you. You may not object and then exclude yourself.
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16. What will happen at the Fairness Hearing? At the Fairness Hearing at 10:00 am on June 12, 2006, the judge will decide whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court may consider them. The judge may also decide whether payment of lawyers’ fees, reimbursement of expenses and costs to Class Counsel, and payment of the Class Representative incentive award should be approved. Unless you wish to object to the Settlement, you are not required to attend the Fairness Hearing. You are welcome to attend at your own expense. The Court may adjourn the Fairness Hearing without further written notice to the Class. 17. How will I know if the Settlement is approved? If you remain part of the Class, and if the Court approves the Settlement, you will be notified when you receive a settlement package in the mail.
Additional Information
18. Where can I get more details about the case? Do not contact the judge or the Clerk of Court for legal questions or advice. If you wish to obtain any additional information, you may obtain copies of the Amended Complaint and other documents filed in this lawsuit from the Clerk of Court, Superior Court of New Jersey, Mercer County, Mercer County Courthouse, 175 South Broad Street, Trenton, NJ during regular business hours. You will need to provide the name of the lawsuit and the case number: Wilson. v. Robert Burt, et al., Docket No. L-1947-03. You may also contact Class Counsel at the addresses listed above. 19. What if my address or phone number changes? If your address or phone number has changed, or changes in the future, you should send your new address and telephone number to Rust Consulting, Inc., the company selected to handle mailing these Notices to the Class, at this address: SETTLEMENT ADMINISTRATOR C/O RUST CONSULTING, INC. PO BOX 62 MINNEAPOLIS, MN 55440-0062 SO ORDERED BY THE SUPERIOR COURT OF NEW JERSEY, LAW DIVISION, MERCER COUNTY.
BY: /s/ HONORABLE PAUL T. KOENIG, JR., J.S.C.
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SETTLEMENT ADMINISTRATOR C/O RUST CONSULTING, INC. PO BOX 62 MINNEAPOLIS, MN 55440-0062
IMPORTANT LEGAL NOTICE