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Current Status of the Case
Last updated July 1, 2009.
Refund of the 5% reserve:
IMPORTANT UPDATE REGARDING THE 5% RESERVE: On June 23, 2009, the Special Master issued a new Order regarding the 5% reserve. You can obtain a copy of the Order by clicking here. In this Order, the Special Master states that his review of the Settlement Agreement between the Class and Exxon, and of the orders approving that settlement, has raised a question as to whether the 2% nonrefundable amount that was withheld from each claim is required to be paid in its entirety to the States to be held for the benefit of class members who did not participate in the Claims Administration Process. If this is the case, it would mean that there is likely not enough money to refund the 5% reserve in its entirety to the Class (although there would likely be sufficient funds to pay some portion of it).
As a result of this concern, the Special Master has ordered Class Counsel and States' Counsel to file position papers on this issue. The position papers are due in 30 days, after which the Special Master has stated that he intends to schedule a hearing to consider the issue. Class Counsel strongly believes that the settlement was not intended to designate the 2% withhold to the States and that the documents cannot properly be interpreted to require this outcome. Class Counsel's position paper, which we will file at the earliest possible opportunity and before the 30 day deadline, will set forth this position, and we will seek to persuade the Special Master and the Court that the 5% reserve should be paid in its entirety to the Class at the earliest opportunity.
However, all Claimants should be aware that because this issue has been raised by the Special Master, the time frame for the authorization of payments on the 5% reserve has been significantly extended. In addition, the amount to be refunded has been called into question. It is impossible to know at this time how long it will take before the Special Master and the Court begin authorizing payments, and how much of a refund will be authorized. Unfortunately, we anticipate that this Order will result in a significant delay and do not anticipate that payments will begin before the end of the year at best. In fact, the Order leaves open the possibility that the payment of the 5% reserve may be put on hold indefinitely. Again, we will do everything we can to expedite the schedule, but the timing of this process is entirely out of our hands. You should not make any plans assuming receipt of funds at a particular time, as there are no guarantees whatsoever as to the timing or amount of payment.
It is critical that you advise the Claims Administrator, in a signed and notarized writing, of any changes in your address or telephone number. Reserve packages will be mailed to the official address on file with the Claims Administrator. It is your responsibility to keep this information current, and if you fail to do so, you may jeopardize your ability to receive your 5% reserve. You can print out and utilize the form attached here if you need to update your information. Be sure to fill in the claim number and to sign and notarize the form.
As previously reported, the Claims Administrator has been working with claimants to obtain the necessary documentation to allow for payment as soon as it is authorized. The mailing of checks has not been authorized yet. Class Counsel has filed a motion requesting that the Court authorize the release of the full 5% plus interest. However, as stated above, payments will not be authorized until the Special Master both resolves his concerns regarding the proper disposition of the 2% withhold and also makes a determination on how certain forfeited fees and incentive awards will be paid. After the Special Master issues an order, the District Court will have to consider it and issue its own order.
The pre-payment procedure approved by the Court is summarized as follows:
--The Claims Administrator has prepared packages and mailed to each claimant who already has received an Award, at the current address on file for that claimant. PLEASE NOTE THAT IF YOU ENTERED INTO A CONTRACT WITH A THIRD PARTY CLAIMS FILING SERVICE AND AGREED TO SETTLE THE AMOUNT YOU OWE THEM, YOU WILL NOT RECEIVE A PACKAGE. IN THAT CIRCUMSTANCE, YOU HAVE ASSIGNED YOUR 5% RESERVE TO THE CLAIMS FILING SERVICE AND THE 5% RESERVE WILL BE PAID DIRECTLY TO THEM. YOU WILL RECEIVE A NOTICE AT THE TIME THE PAYMENTS ARE ACTUALLY MADE. As of March 31, reserve packages have been mailed for all but a handful of claims presenting special issues. If you have not received a package and did not assign your reserve to a third party claims filing service, please contact us regarding the status of your paperwork. Again, if you assigned your reserve to a third party claims filing service (e.g., Claims Compensation Bureau, National Equity Development Group, Class Action Recovery Service, Crippen & Cline, Lex Recovery Group, or Class Action Refund), you will not receive a reserve package and your 5% reserve will be sent directly to the assignee.
Mailing 1 - Sent January 23 - Deadline March 24
Mailing 2 - Sent January 30 - Deadline March 31
Mailing 3 - Sent February 6 - Deadline April 7
Mailing 4 - Sent February 13 - Deadline April 14
Mailing 5 - Sent February 20 - Deadline April 21
Mailing 6 - Sent February 27 - Deadline April 28
Mailing 7 - Sent March 6 - Deadline May 5
Mailing 8 - Sent March 13 - Deadline May 12
Mailing 9 - Sent March 20 - Deadline May 19
Mailing 10 - Sent March 27 - Deadline May 26
Mailing 11 - Sent April 10 - Deadline June 9
Mailing 12 - Sent April 21 - Deadline June 22
Mailing 13 - Sent April 29 - Deadline June 29
Mailing 14 - Sent June 5 - Deadline August 4
--Each claimant must return a new Payment Instruction form, specific to the 5% reserve, indicating where the check should be sent and setting forth the appropriate co-payee, if any. A new W9 does not need to be supplied unless the claimant's tax status or identification number has changed since receipt of the initial payment.
--**CLAIMANTS MUST RETURN VALID, COMPLETE PAYMENT INSTRUCTIONS WITHIN 60 DAYS OF THE MAILING FROM THE CLAIMS ADMINISTRATOR, WITH NO EXTENSIONS WHATSOEVER. It is therefore critical that all claimants ensure that their correct mailing address is on file with the Claims Administrator, and that they PROMPTLY complete and return their Payment Instruction form. CLASS COUNSEL STRONGLY RECOMMENDS THAT THE FORM SHOULD BE RETURNED AT THE EARLIEST OPPORTUNITY SO THAT IF THERE ARE ANY DEFICIENCIES, THE CLAIMANT WILL HAVE THE OPPORTUNITY TO CORRECT THE MISTAKE. To repeat, in order to afford the necessary finality to the claims process, the Special Master has determined that a valid form must be on file within the 60 day period, and no extensions will be granted even if a form is returned within that time but is invalid. YOU SHOULD NOT WAIT UNTIL THE LAST MINUTE TO SEND IN YOUR FORM. Note that you will receive a Form 1099 reporting the 5% reserve as income to you regardless of whether you claim it.
--No additional third party forms will be accepted regarding the 5% reserve. If a third party claim was on file prior to the initial payment and payment was made consistent with the third party request, payment of the reserve check must be made in the same fashion as the initial payment, with no relitigation of entitlement.
--No payments will be made until further order of the Court. Once checks are mailed, they must be cashed or deposited within 90 days.
This web page will be kept up to date with the absolute most current information regarding the 5% reserve. Please refrain from contacting us with general questions about the status of this refund process so that we may continue to assist those claimants who have not yet received their initial payments.
Forms 1099. The Claims Administrator has mailed Forms 1099 to claimants who were paid in 2008. A detailed letter explaining how the amount listed on the 1099 are calculated and describing the nature of the recovery is included in the mailing. Please do not contact the claims administrator or Class Counsel with any tax-related questions, as we are not able to provide any tax advice or further information beyond what is included in the letter.
The Claims Administrator will mail Forms 1099 to claimants who were paid in 2009 by January 31, 2010.
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.
We are excited to report that 12,130 out of 12,130 claims have been designated in a motion for adjudication (i.e., every single claim). Of these, 12,085 claims (approximately 99.6% of the total claims) worth $1.097.3 billion gross (approximately 99.6% of the total dollars) have been paid or permanently withdrawn or dismissed. Another 13 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 (1-130)
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 June 20, 2008. On July 29, the Special Master entered written Awards for the approved claims. Award packages were mailed by the Claims Administrator to claimants on August 5. The deadline for the return payment instructions and an executed W-9 tax form(s) was September 4. Those claimants who returned accurate and complete payment instructions and W-9s that were received by the Claims Administrator by September 4, 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, were included on disbursement orders approved by the Special Master on September 25 and by the District Court on September 29. The Claims Administrator mailed the checks on Friday, October 3. Additional payments will be made to those claimants who cure deficiencies in upcoming rounds of payment.
Motions 119-124. On September 10, 2008, the Special Master approved 386 claims from Motions 119-124 for entry of an Award. On October 13, the Special Master entered written Awards for the approved claims. Award packages were mailed by the Claims Administrator on Monday, October 20. The deadline for the return payment instructions and an executed W-9 tax form(s) was November 19. On December 8, the Special Master entered payment orders for the approved claims. On December 10, the District Court entered the payment orders. Checks were mailed on December 15. Additional payments will be made to those claimants who cure deficiencies in upcoming rounds of payment.
PLEASE NOTE THAT IT IS CRITICAL THAT CLAIMANTS COMPLETE THE PAYMENT INSTRUCTIONS FULLY AND COMPLETELY, AND ENCLOSE A W-9 WITH ALL REQUESTED INFORMATION. ANY INCORRECT OR MISSING INFORMATION WILL REQUIRE THE FORMS TO BE RETURNED TO YOU AND WILL DELAY YOUR PAYMENT. LIKEWISE, ANY ATTEMPT TO CHANGE THE NAME OF THE PRIMARY PAYEE OR FAILURE TO PROVIDE A W-9 FOR THE ACTUAL PAYEE (INCLUDING THE ACTUAL DISSOLVED CORPORATION LISTED AS THE CLAIMANT, WHERE APPLICABLE) WILL REQUIRE THE FORMS TO BE RETURNED TO YOU AND WILL DELAY YOUR PAYMENT. IF YOU DESIGNATE A CO-PAYEE, YOU MUST ALSO RETURN AN ADDITIONAL COMPLETED W-9 FOR THE CO-PAYEE. PLEASE TAKE THE TIME TO READ ALL THE INSTRUCTIONS CAREFULLY AND CALL YOUR CLASS COUNSEL ATTORNEY IF YOU HAVE ANY QUESTIONS ABOUT HOW TO COMPLETE THE FORMS. For more information about the payment process, all claimants should click here to read additional instructions about how to ensure your paperwork will be accurate and complete.
Motion 125-128. With the exception of those claims that were deferred because of missing claimant paperwork, these claims were approved by the Special Master on November 5, 2008. The Special Master entered written awards on November 21. Award packages were mailed by the Claims Administrator to claimants on Tuesday, December 2. The deadline for claimant's return of payment instructions and an executed W-9 tax form(s), which are included in the mailing from the Claims Administrator, was January 2. Checks were mailed to those claimants who returned accurate and complete payment instructions and W-9s by January 2, 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 January 29. Additional payments will be made to those claimants who cure deficiencies in upcoming rounds of payment.
PLEASE NOTE THAT IT IS CRITICAL THAT CLAIMANTS COMPLETE THE PAYMENT INSTRUCTIONS FULLY AND COMPLETELY, AND ENCLOSE A W-9 WITH ALL REQUESTED INFORMATION. ANY INCORRECT OR MISSING INFORMATION WILL REQUIRE THE FORMS TO BE RETURNED TO YOU AND WILL DELAY YOUR PAYMENT. LIKEWISE, ANY ATTEMPT TO CHANGE THE NAME OF THE PRIMARY PAYEE OR FAILURE TO PROVIDE A W-9 FOR THE ACTUAL PAYEE (INCLUDING THE ACTUAL DISSOLVED CORPORATION LISTED AS THE CLAIMANT, WHERE APPLICABLE) WILL REQUIRE THE FORMS TO BE RETURNED TO YOU AND WILL DELAY YOUR PAYMENT. IF YOU DESIGNATE A CO-PAYEE, YOU MUST ALSO RETURN AN ADDITIONAL COMPLETED W-9 FOR THE CO-PAYEE. PLEASE TAKE THE TIME TO READ ALL THE INSTRUCTIONS CAREFULLY AND CALL YOUR CLASS COUNSEL ATTORNEY IF YOU HAVE ANY QUESTIONS ABOUT HOW TO COMPLETE THE FORMS. For more information about the payment process, all claimants should click here to read additional instructions about how to ensure your paperwork will be accurate and complete.
Motion 129. The Special Master has entered Awards on the claims in this motion. Award packages were mailed by the Claims Administrator on April 2, 2009. The deadline for claimant's return of payment instructions and an executed W-9 tax form(s), which are included in the mailing from the Claims Administrator, was May 4, 2009. 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, have been included in disbursement orders which have been entered by the Special Master and the District Court. We anticipate that checks will be mailed within the next two weeks. Additional payments will be made to those claimants who cure deficiencies in upcoming rounds of payment.
Motion 130. Other than those claims that have been deferred because of missing documentation, the claims in this motion have been approved by the Special Master. Awards were entered on June 22, 2009, and payment packages were mailed by the Claims Administrator on June 29. The deadline for claimant's return of payment instructions and an executed W-9 tax form(s) is July 29.
PLEASE NOTE THAT IT IS CRITICAL THAT CLAIMANTS COMPLETE THE PAYMENT INSTRUCTIONS FULLY AND COMPLETELY, AND ENCLOSE A W-9 WITH ALL REQUESTED INFORMATION. ANY INCORRECT OR MISSING INFORMATION WILL REQUIRE THE FORMS TO BE RETURNED TO YOU AND WILL DELAY YOUR PAYMENT. LIKEWISE, ANY ATTEMPT TO CHANGE THE NAME OF THE PRIMARY PAYEE OR FAILURE TO PROVIDE A W-9 FOR THE ACTUAL PAYEE (INCLUDING THE ACTUAL DISSOLVED CORPORATION LISTED AS THE CLAIMANT, WHERE APPLICABLE) WILL REQUIRE THE FORMS TO BE RETURNED TO YOU AND WILL DELAY YOUR PAYMENT. IF YOU DESIGNATE A CO-PAYEE, YOU MUST ALSO RETURN AN ADDITIONAL COMPLETED W-9 FOR THE CO-PAYEE. PLEASE TAKE THE TIME TO READ ALL THE INSTRUCTIONS CAREFULLY AND CALL YOUR CLASS COUNSEL ATTORNEY IF YOU HAVE ANY QUESTIONS ABOUT HOW TO COMPLETE THE FORMS. For more information about the payment process, all claimants should click here to read additional instructions about how to ensure your paperwork will be accurate and complete.
Motion 131. This motion is on hold pending receipt of documentation from claimants.
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-C11. 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.
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 notified.
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 on September 10th the Special Master issued an order ruling on the remaining disputes. This order has been sent to all affected claimants.
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 the Special Master has issued orders ruling on the remaining disputes. These orders have been sent to all affected claimants.
Motion D4. Motion D4 was filed by Class Counsel on June 24, 2008, and amended to add additional claims on July 23 and August 26. The Special Master has issued an order on some of these claims, which has been sent to all affected claimants.
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.
Class Counsel's final fee payment was made in December, 2008.
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.
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