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Date: 01-13-2023
Case Style:
Patricia Yost v. Elon Property Management, LLC, et al.
Case Number: 1:21-cv-01520
Judge: Ellen Lipton Hollander
Court: United States District Court for the District of Maryland (Balitmore County)
Plaintiff's Attorney: Janes Santoni and Robert Murphy
Defendant's Attorney: Jaeson Wayne McElroy, Mitchel H. Kider, Charles Kneeland Cooper
Description: Baltimore, Maryland consumer law lawyer represented Plaintiff, who sued Defendant on a Violation of Credit Repair Organizations Act Consumer Credit theory under 15 U.S.C. 1679.
Plaintiff filed a Complaint against defendants Elon Property Management Company-Lexford Pools 1/3, LLC and Elon Property Management, LLC (collectively, “Elon”) on June 18, 2021, seeking class-wide relief, inter alia, for violation of 15 U.S.C. § 1679 et seq., commonly known as the “Federal Credit Repair Organizations Act” (“CROA” or the “Act”). The suit concerns credit amelioration fees charged to Elon tenants as part of their rent payments. ECF 1; ECF 44 at 1-2. Plaintiff subsequently filed an Amended Complaint (ECF 20), adding Real Pay, Inc. (“Real Pay”), Elon's “business partner,” as a defendant. ECF 34 at 4; see also ECF 20, ¶ 21. However, Real Pay was never served. See Docket.
On July 5, 2022, plaintiff filed an “Unopposed Motion for Preliminary Approval of Class Action Settlement” (ECF 34, the “Motion”), seeking, inter alia, preliminary certification and approval of the proposed class action settlement. By Order of July 11, 2022 (ECF 36), Judge Catherine C. Blake, to whom the case was then assigned,[1] granted preliminary approval of the proposed settlement and directed notice to be issued to the class members. That Order was subsequently amended by Order of July 29, 2022 (ECF 40), providing for short form class notice and enlargement of time to complete notice mail-out. In addition, a class action fairness hearing was scheduled for January 13, 2023. ECF 43.
Now pending is the “Motion for Final Approval of Class Action Settlement Agreement.” ECF 44 (the “Motion”). With the Motion, the parties submitted a “Declaration of Noah Fiori, Case Manager, American Legal Claim Services, LLC,” with exhibits, including a list of class members who timely opted out of the proposed settlement (ECF 44-1); a “Declaration of Jane Santoni,” Class Counsel (ECF 44-2); and a “Declaration of Robert W. Murphy,” who is also Class Counsel. ECF 44-3.
Also pending is the “Motion for Award of Attorneys' Fees and Costs and Approval of Class Representative Service Award.” ECF 45 (the “Fee Motion”).
No objections were lodged to the motions. And, the class action fairness hearing was held on January 13, 2023, as scheduled. Ms. Yost was present. But, as the record reflects, no interested parties or members of the public appeared at the hearing.
I. Factual and Procedural Background
Plaintiff alleges that it was the policy and practice of defendants to “provide credit repair services subject to CROA without providing the written disclosures mandated by 15 U.S.C. § 1679c before collecting monies for credit repair services,” and to “have consumers enter into contracts for credit repair services without the mandated contract terms and provisions required under 15 U.S.C. § 1679d and e”. ECF 20, ¶¶ 29, 30. Further, defendants allegedly made “false statements with respect to a tradeline to a consumer reporting agency in contravention of 15 U.S.C. § 1679b(a)(1)(A). Id. ¶ 31. Both the initial Complaint (ECF 1) and the Amended Complaint (ECF 20) contain three counts: violation of the Act (Count 1); declaratory and injunctive relief (Count 2); and unjust enrichment (Count 3).
In response to the initial Complaint (ECF 1), defendants filed a motion to dismiss. ECF 10. They argued, inter alia, that Elon is not a credit repair organization subject to the CROA. ECF 10. Plaintiff learned that Elon's business partner, Real Pay, was also reporting false information on plaintiff's credit reports. Therefore, Yost added Real Pay as a party defendant in the Amended Complaint. ECF 20. As noted, Real Party was never served with the suit.
Defendants moved to dismiss the Amended Complaint, pursuant to Fed.R.Civ.P. 12(b)(6). ECF 24. Plaintiff opposed the motion. ECF 25. And, defendants replied. ECF 26. After the briefing, counsel began several weeks of discussions concerning the settlement of the dispute on a class-wide basis. ECF 35 at 5.
On February 22, 2022, the parties asked the Court to stay the case to afford counsel an opportunity to present a proposed class settlement agreement for court approval. ECF 27. That request was granted. ECF 28.
Then, on May 9, 2022, plaintiff filed an ”Unopposed Motion for Preliminary Approval of Class Action Settlement.” The Settlement Agreement is docketed at 34-1 (“Agreement”).[2] Judge Blake granted preliminary approval of the Agreement on July 11, 2022. ECF 36. Thereafter, on July 25, 2022, the parties filed a “Joint Motion to Modify Preliminary Approval Order to Provide for Short Form Class Notice and Enlargement of Time to Complete Notice Mail-Out.” ECF 38. By Order of July 29, 2022 (ECF 40), the Court found that the use of the short form notice would benefit class members by reducing administration expenses and that it complies with the requirements of Fed.R.Civ.P. Rule 23 and due process. Thus, Judge Blake granted the motion. In consideration of the preliminary approval of a settlement in the case, the pending motion to dismiss (ECF 24) was denied, without prejudice. ECF 41.
On September 20, 2022, the parties filed a “Joint Motion to Direct Notice to Joint Class Members and to Reset Settlement Administration Deadlines.” ECF 42. That motion was granted, and the class action fairness hearing was set for 9:30 a.m. on January 13, 2023. ECF 43. The fairness hearing was held, as scheduled. ECF 50.
Yost v. Elon Prop. Mgmt. Co. (D. Md. 2023)
Outcome: 01/13/2023 50 Fairness Hearing held on 1/13/2023 before District Judge Ellen Lipton Hollander. (R. Carrick - Courtroom 5B)(Court Reporter: Kassandra McPherson) (rc2s, Deputy Clerk) (Entered: 01/13/2023)
01/13/2023 51 MEMORANDUM OPINION. Signed by District Judge Ellen Lipton Hollander on 1/13/2023. (bas, Deputy Clerk) (Entered: 01/13/2023)
01/13/2023 52 FINAL APPROVAL ORDER. Signed by District Judge Ellen Lipton Hollander on 1/13/2023. (bas, Deputy Clerk) (Entered: 01/13/2023)Plai
Plaintiff's motion for attorneys' fee granted in the amount of $166,650.00 and "expenses in the amount of $750.00, and for a service award of $5,000.00 to Patricia Yost.
Plaintiff's Experts:
Defendant's Experts:
Comments: