Current Status of the Case

Last updated July 24, 2008.

Claim payments: If you have questions about how to complete a payment instruction form or the procedure for payment of claims, please click here and read the Frequently Asked Questions and Answers that we have prepared.  Please read this document in its entirety and call us for clarification only if your question is not answered.  Thank you for your cooperation, as this will allow us to direct our efforts to advancing claims for payment as quickly as possible.

11,966 out of the approximately 12,112 claims have been designated in a motion for adjudication.  Of these, 10,782 claims (approximately 89.0% of the total claims) worth $1.003 billion gross (approximately 90.8% of the total dollars) have been paid or permanently withdrawn or dismissed.  Another 68 claims are eligible for payment upon such time as the claimants provide the required payment instructions and tax documentation and resolve any disputes with third parties over their payment. The status of each group of claims is as follows:

Motions for Summary Judgment (1-123)

Please note that if you were included in a motion for summary judgment, you would have heard from us and would know that your claim has been included in a motion for judgment.  If you have not been working with one of our attorneys or received a letter saying we have included you in a motion for judgment, your claim has not been advanced yet. 

Motions 1-20:  All claims in Motions 1-20 have been paid.

Motions 21-38:  The deadline for return of payment instructions for the claims in this motion was December 22, 2006.  All those claims for which accurate and complete payment instructions with W-9 forms were submitted, and for which there is no conflict with a third party regarding payment, were included in a disbursement order.  The disbursement orders for Motions 21-38 (and for those claims from motions 1-20 for which deficiencies were cured or disputes were resolved) were approved by the Special Master on Tuesday, January 23, and were approved by Judge Gold on January 25. The checks were mailed to claimants in motions 21-38 on Wednesday, January 31.  Additional payments to those claimants who have cured deficiencies were made in subsequent rounds of payments, and will continue to be made with each payment group as deficiencies are resolved. 

Motions 39-45.  The deadline for return of payment instructions for the claims in this motion was January 29, 2007.  All those claims for which accurate and complete payment instructions with W-9 forms were submitted by this deadline, and for which there is no conflict with a third party regarding payment, have been included in disbursement orders which were signed by the Special Master on March 6 (this includes those claims from previous rounds of payment that have resolved deficiencies in their payment paperwork).  The disbursement orders were approved by the District Court on March 12.  The Claims Administrator mailed the checks on Thursday, March 15.  Additional payments to those claimants who have cured deficiencies were made in subsequent rounds of payments, and will continue to be made with each payment group as deficiencies are resolved. 

Motions 46-57.  The deadline for return of payment instructions for the claims in this motion was April 9, 2007.  All those claims for which accurate and complete payment instructions with W-9 forms were submitted by this deadline, and for which there is no conflict with a third party regarding payment, have been included in disbursement orders which were signed by the Special Master on May 3 and by the District Court on May 9 (this includes those claims from previous rounds of payment that have resolved deficiencies in their payment paperwork).  Half of the checks were mailed on May 16 and the remainder were mailed on May 18. If you received a notice of deficiency, you should work to correct it as quickly as possible so that you can be included in the next round of payments.  Additional payments to those claimants who have cured deficiencies were made in subsequent rounds of payments, and will continue to be made with each payment group as deficiencies are resolved. 

Motions 58-65.  The deadline for return of payment instructions for the claims in this motion was May 9, 2007. All those claims for which accurate and complete payment instructions with W-9 forms were submitted by this deadline, and for which there is no conflict with a third party regarding payment, have been included in disbursement orders which were signed by the Special Master and by the District Court.  The checks were mailed on Friday, June 15.  Additional payments to those claimants who have cured deficiencies will be made with each payment group as deficiencies are resolved. 

Motions 66-75.  The deadline for return of payment instructions for the claims in this motion was June 15, 2007.  All those claims for which accurate and complete payment instructions with W-9 forms were submitted by this deadline, and for which there is no conflict with a third party regarding payment, have been included in disbursement orders which were signed by the Special Master on July 12 and by the District Court on July 16 (this includes those claims from previous rounds of payment that have resolved deficiencies in their payment paperwork).  Checks were mailed on July 23.  Additional payments to those claimants who have cured deficiencies will be made with each payment group as deficiencies are resolved. 

Motions 76-83.  All claims in Motions 76-83 have been paid.

Motions 84-90.  These claims were heard by the Special Master on Wednesday, July 25, 2007.  With the exception of those claims withdrawn or deferred before the hearing, all the other claims were approved. 

On August 24, the Special Master entered written Awards.  The deadline for the return of payment payment instructions and executed W-9 tax forms was October 1.  All those claims for which accurate and complete payment instructions with W-9 forms were submitted by this deadline, and for which there is no conflict with a third party regarding payment, have been included in disbursement orders which were signed by the Special Master and the District Court (this includes those claims from previous rounds of payment that have resolved deficiencies in their payment paperwork).  On November 21, the Claims Administrator mailed out the checks.  Additional payments to those claimants who have cured deficiencies will be made with each payment group as deficiencies are resolved. 

Motions 91-98.  These claims were heard by the Special Master on Monday, September 17, 2007.  With the exception of those claims withdrawn or deferred before the hearing, all the other claims were approved. 

On October 31, the Special Master entered written Awards.  Award packages were mailed by the Claims Administrator to claimants on November 7, 2007.  The deadline for the return of payment instructions and executed W-9 tax form(s) was December 7.  Those claimants who returned accurate and complete payment instructions and W-9s by December 7, and who do not have a dispute with a third party who is asserting the right to be included as a co-payee on the claim, have been included in disbursement orders which were signed by the Special Master on February 8 and by the District Court on February 12.   The Claims Administrator mailed some of the checks on February 21 and the remainder on February 22. 

On July 11, the Special Master entered disbursement orders for claimants who cured deficiencies on or before June 20.  The Claims Administrator mailed checks on July 18, 2008.  Additional payments will be made to those claimants who cure deficiencies in upcoming rounds of payment.

Motions 99-104.  These claims were heard by the Special Master on Wednesday, November 28, 2007.  The Special Master approved the 559 claims that had not been previously withdrawn or dismissed.  All claimants with a claim in one of these motions has been mailed a letter informing them of the status of their claim.  On January 17, 2008, the Special Master issued written Awards, and the Award Packages were mailed by the Claims Administrator to claimants on January 25, 2008.  The deadline for the return of payment instructions and executed W-9 tax form(s) was February 25, 2008.  Payment Orders were issued on April 3. On April 8, checks were mailed to those claimants who returned accurate and complete payment instructions and W-9s by February 25, and who do not have a dispute with a third party who is asserting the right to be included as a co-payee on the claim.  

On July 11, the Special Master entered disbursement orders for claimants who cured deficiencies on or before June 20.  The Claims Administrator mailed checks on July 18, 2008.  Additional payments will be made to those claimants who cure deficiencies in upcoming rounds of payment.

 Motions 105-110.  These claims were heard by the Special Master on Wednesday, March 5.  With the exception of six claims (3537, 1009429, 1034422A, 1019537, 1023127, and 1031194B) which were withdrawn from consideration, and eight claims (622, 1028460, 749 A, B & C, 1002669, 1034422B, and 1027855A) which will be considered at the next hearing, all of the other claims were approved.  

On March 31, 2008, the Special Master entered written Awards for the approved claims.  Award packages were mailed by the Claims Administrator on April 7.  The deadline for the return of payment instructions and executed W-9 tax form(s) was May 7.  The Special Master entered Payment Orders on May 28 and the District Court entered them on May 30.  The checks were mailed on June 9. 

On July 11, the Special Master entered disbursement orders for claimants who cured deficiencies on or before June 20, and the District Court entered the disbursement orders on July 15.  The Claims Administrator mailed checks on July 18, 2008. Additional payments will be made to those claimants who cure deficiencies in upcoming rounds of payment.

Motions 111-118.  These claims were heard by the Special Master on Friday, June 20.  The Special Master approved the 623 claims that had not been previously withdrawn or dismissed.  All claimants with a claim in one of these motions have been mailed a letter informing them of the status of their claim.  Written awards have not yet been entered on these claims.  We anticipate that this will occur in 2-4 weeks.  During this period, the claims will undergo an intensive review for accuracy of all applicable details to ensure the correct claimants receive the correct payments. 

Motion 119-123.  These claims have not yet been scheduled for hearing.

Motions for Adjudication of Conflicting Claims

On September 4, 2007, the Special Master issued a Report and Recommendation establishing new procedures for the adjudication of claims which conflict with other claims.  The Report and Recommendation is available by clicking here.

Motions C1-C9.  All claimants designated in these motions have been notified and their claims have either been resolved or are pending for determination by the Special Master.

Motion C10.  The Special Master issued a scheduling order regarding this motion on July 24.  A copy of the order will be sent to all affected claimants.

Motions for Adjudication of Disputed Claims

Each "disputed claim," for which summary judgment is not appropriate because there are one or more disputes of law or fact regarding the claimant's eligibility to recover, will be submitted for resolution by the Special Master. 

Motions D1.  Motion D1 was filed by Class Counsel on September 5, 2007.  On November 26, 2007, the Special Master issued an order setting forth the procedure and schedule for the resolution of these claims.  All claims have been resolved and affected claimants have been or will be notified shortly.

Motion D2.  Motion D2 was filed by Class Counsel on October 12, 2007. Some of the claims have been resolved by agreement of the parties, and we are awaiting an order from the Special Master regarding the remaining claims.

Motion D3.  Motion D3 was filed by Class Counsel on January 23, 2008.  Some of the claims have been resolved by agreement of the parties, and we are awaiting an order from the Special Master regarding the remaining claims.

Motion D4.  Motion D4 was filed by Class Counsel on June 24, 2008, and amended to add additional claims on July 23, 2008.  The Special Master has not yet issued an order setting forth the procedure and schedule for the resolution of these claims.

Claims filing services:  On December 21, 2006, Class Counsel and three claims filing services (Class Action Refund LLC, Lanark Warner Industries, Inc. d/b/a/ Class Action Recovery Services, and National Equity Development Group, Inc.) filed a motion with the Special Master to approve three Settlement Agreements reached by Class Counsel with each of the three claims filing services.  On January 9, 2007, Class Counsel and Russell A. Cline/Crippen & Cline, L.C. filed a motion with the Special Master to approve a Settlement Agreement reached by Class Counsel with Mr. Cline.  On February 1, 2007, Lex Group, LLC (also known as Lex Recovery Group LLC) entered into a settlement with Class Counsel, and the motion for approval of this settlement was filed on Monday, February 5.  On February 12, 2007, Class Counsel and Class Action Recovery Group ("CARG") filed a motion with the Special Master to approve a Settlement Agreement reached by Class Counsel with CARG.  On February 15, 2007, Class Counsel and Claims Compensation Bureau filed a motion with the Special Master to approve a Settlement Agreement reached by Class Counsel with CCB. 

On April 4, 2007, the Special Master entered a Report and Recommendation approving the settlements and recommending that the District Court approve them.  On May 1, 2007, the District Court approved the settlements in their entirety.  As a result, all claimants who entered into a contract with one of these third party service providers have the opportunity to make one of the following choices:

Option One: Accept the Settlement.  If you accept the settlement, you will receive the full amount of your initial payment from the Court (less the Court-approved reductions made to every claimant's recovery regardless of the involvement of a claims service, including a 5% reduction of your claim that is withheld from all claimants in order to ensure that there are sufficient funds for all claimants to be paid, which is known as the "5% reserve").  The only amount the claims service will recover is whatever amount of the 5% reserve with interest that the Court orders for all claimants to receive at the conclusion of the claims process (likely in one to three years).  In other words, the claims service will get no portion of your initial payment, but you will have no entitlement to any further refund from the Court, and any portion of the 5% reserve that is awarded by the Court will go to the claims service. If the Court declines to award any portion of the 5% reserve due to the lack of funds, which is unlikely but not impossible, you will have no liability to the claims service.  The maximum percentage of your recovery that you will end up paying is 5 percent of your gross recovery plus the loss of interest on that 5% which may or may not be awarded by the Court.

Option Two: Reject the Settlement.  If you elect to reject the settlement, you have a continuing right to object to your contract in this Court and/or elsewhere.  If you win such a challenge, it is possible that you might end up owing your claims service less than you would pay under this settlement or even nothing.  However, because Class Counsel has entered into this settlement on the basis that it is fair and because Class Counsel's continued involvement in litigating these issues would detract from the ongoing representation of the Class as a whole, Class Counsel will not be available to assist you in pursuing your objection or any appeals resulting therefrom.  Moreover, it is quite possible that the claims service will object to your receipt of payment, delaying your payment and resulting in a dispute that you will have to resolve before you are paid.  Or, the claims service may sue you in some other state (or in the case of CARS, initiate arbitration against you), which you would have to defend, without our assistance.  Thus, you may incur substantial costs for travel and legal representation, with no guarantee of success.

Option Three.  Reject the Settlement and Elect to Honor the Terms of Your Original Agreement.  If you feel that the claims service provided the services they promised to provide and you would like to honor the terms of your original agreement with the claims service and pay them the amount you contracted to pay them, you may do so. 

All affected claimants have been sent a letter advising them of their options and asking for their decision as to how they wish to proceed.  All affected claimants must complete a claimant election form and return it to the Claims Administrator before they can be paid.  In order to be paid, you must already have been issued an Award, you must already have returned payment instructions and a valid W9, and you must have returned your election form with a designation of Option One or Three.  Any claimant who does not satisfy these requirements will be included in a later round of payment.

The settlement represents what we believe to be a fair and reasonable compromise.  While we believe there are grounds to object to the claims services’ agreements, the final outcome of these objections is uncertain, and there is the possibility that claimants would be found to owe the claims service the full amount set forth in the contract that the claimants signed.  Additionally, an ongoing dispute with a claims service might significantly delay the claimants' payments, and no interest is accruing on the payments at this time.  The amount of compensation claimants will have to pay the claims services under the settlement is significantly less than that provided for in their contracts, and they will not have to pay the claims services anything now.  For all of these reasons, Class Counsel recommends that affected claimants elect to accept the settlement.

Small estate claims:  On January 31, 2008, the Special Master denied Class Counsel's and States' Counsel's joint motion to approve simplified procedures for certain claims filed by the heirs or beneficiaries of deceased dealers.  We have communicated with each affected claimant about the steps they need to take in order to pursue their claim.

Claims filing deadline: Pursuant to the settlement, any claim postmarked on or before December 19, 2005 will be allowed.

Records: Class counsel has reviewed and scanned all of Exxon's dealer files to obtain records that may assist dealers in completing their claims.  Beginning in June 2004, we began to review all claims and supplemented many of them with the information we obtained from Exxon.  We will continue to supply documentation for the remaining claims as we work with claimants to file replies.

Determination of attorneys' fees and named plaintiff awards: 

On July 6, 2006, the District Court issued an order awarding attorneys' fees and named plaintiff incentive awards.  Click here for a copy of the order.  It awards 31 1/3% to Class counsel as attorneys' fees and 1.5% to the named plaintiffs as incentive awards, and orders the Special Master to determine what costs will be reimbursed.  These amounts will be deducted from each claimant's award before it is paid.

On March 7, 2007, the Special Master issued a Report and Recommendation determining the amount of costs to be reimbursed to Class Counsel and to those dealers who contributed cost money to the litigation.  A copy of the Report and Recommendation is available by clicking here.  The District Court affirmed the Report and Recommendation on April 16. Click here to review the order. More information about when reimbursements will be made will be posted when it is available.

On July 26, 2007, Class Counsel filed a Petition for an Intermediate Distribution of Attorneys' Fees, in which we request a portion of the fees that have been previously awarded but not yet paid.  Click here to review the petition and click here to review the exhibits.  The District Court granted the motion on August 21.  Click here to read the Court's order.

On February 26, 2008, Class Counsel filed a Petition for an Intermediate Distribution of Attorneys' Fees, in which we request a portion of the fees that have been previously awarded but not yet paid.  The District Court granted the motion on March 25.

Supreme Court ruling

In a 5-4 decision, the United States Supreme Court ruled on Thursday, June 23, 2005 that all dealers, including those whose claims are worth less than $50,000, were properly included in the class.  The majority opinion was written by Justice Anthony Kennedy, who adopted the arguments asserted by the lawyers for the Class.  Justices Ginsburg and Stevens wrote dissenting opinions.

This opinion ensures that all claimants will be able to proceed with their claims in the claims process that has already been established.  It will still be necessary for the claims administrator to adjudicate each claim on an individual basis, which will take many months or even years, but we will do everything in our power to speed up the process as quickly as possible.