Almada v. Krieger Law Firm, A.P.C.

Summary

The United States District Court for the Southern District of California granted in substantial part an unopposed motion for a third distribution from a residual class settlement fund and for final approval of cy pres beneficiaries. The court authorized a third pro rata distribution to 159 participating class members, approved the National Consumer Law Center as a cy pres recipient, and rejected Public Justice as lacking a sufficient nexus to the class and claims. The order is based on alleged violations of the Fair Debt Collection Practices Act and California's Rosenthal Fair Debt Collection Practices Act.

Holdings

1. A third pro rata distribution to the 159 participating class members who cashed their second-distribution checks was appropriate because it was administratively feasible, economically feasible, consistent with the settlement agreement, and directly benefited class members.
2. The National Consumer Law Center was an appropriate cy pres recipient because its consumer-protection resources and training concerning unfair debt-collection practices had a direct and substantial nexus to the interests of absent class members.
3. Public Justice was not an appropriate cy pres beneficiary because Plaintiff failed to show that its proposed use of the funds would have a direct and substantial nexus to the interests of the absent class members or specifically advance the objectives of the FDCPA and RFDCPA.

Questions Presented

1. Whether a third pro rata distribution from the residual settlement fund to class members who cashed their second-distribution checks was administratively and economically feasible and consistent with the settlement agreement.
2. Whether the National Consumer Law Center and Public Justice were appropriate cy pres beneficiaries under the settlement agreement and the governing cy pres standards.

Disposition

other