Court of Appeal Affirms Multi-Million Dollar Settlement Despite Vigorous Objections
By Paul Seeley
UPDATE: On July 28, 2010, the Court of Appeal, First District, modified and published the opinion in Cellphone Fee Termination Cases . The court retained its holdings regarding the adequacy of the class notice and the appropriate "incentive" payments to the class representatives. However, the court did not publish the portion of its opinion that analyzed the "fairness" of the class settlement, including the court's recognition that the pending cross-complaint filed by Verizon against the class that could have reduced the class's overall damage award. The rest of the opinion remains the same and can now be relied upon as authority supporting similar class-notice and incentive payment settlement plans.
On June 28, 2010, in the unpublished opinion Cellphone Fee Termination Cases, A124038 (June 28, 2010), the Court of Appeal, First District, affirmed the trial court’s approval of a nationwide class action settlement over the objections of several class members. Although it is not published, the Cellphone Fee case provides guidance for litigants seeking to secure approval of class-wide settlements. It also suggests effective litigation strategy that will help class action parties “win” the settlement against asserted objections.
