Fritton v. Taylor Corp.

Background

The plaintiffs—Jason C. Fritton, Marea Gibson, Brian W. Motzenbeeker, Dawn Duff, and Christopher Shearman—brought the action individually and on behalf of others similarly situated. They asserted claims on behalf of the Taylor Corporation 401(k) Plan to recover alleged losses resulting from violations of the Employee Retirement Income Security Act of 1974 (ERISA). The defendants were Taylor Corporation, its Board of Directors, the Fiduciary Investment Committee, and John Does 1-30.

The plaintiffs moved for final approval of the class-action settlement, certification of the settlement class, and approval of the plan for distributing the settlement fund. They also moved for attorney fees, reimbursement of expenses, and case-contribution awards for the named plaintiffs. The motions were unopposed.

Settlement approval and class certification

The court approved and confirmed the settlement in the parties’ stipulation as fair, reasonable, and adequate. The settlement required payment of $485,000 on behalf of the defendants. The court found that the settlement was negotiated at arm’s length, arose from a genuine controversy, and was not the result of collusion, fraud, or misrepresentation.

The court approved the action as a non-opt-out class action under Federal Rules of Civil Procedure 23(a) and 23(b)(1). The settlement class consists of all people, except the listed exclusions, who were participants in or beneficiaries of the Taylor Corporation 401(k) Plan at any time from February 14, 2016, through April 24, 2024. The court confirmed the appointment of Edelson Lechtzin LLP and Capozzi Adler, P.C. as co-lead counsel and Gustafson Gluek PLLC as local counsel, and found that class counsel adequately represented the settlement class.

The court found that the notice provided to the settlement class adequately informed identifiable class members about the litigation, their right to object, and their right to appear at the fairness hearing. It also found that the Plan’s participation in the settlement was on terms no less favorable than those for the plaintiffs and settlement class. The court determined that the settlement did not constitute a prohibited transaction under ERISA and, to the extent any transaction would otherwise be prohibited, found that it satisfied the cited exemption.

Judgment and releases

Based on the settlement, the court dismissed the amended complaint and the action against the defendants with prejudice. As of complete settlement approval and payment of the settlement amount, the plaintiffs, the Plan, and settlement-class members released the specified released claims against the releasees. The defendants also released claims arising from the action against the specified plaintiff released parties.

The court gave the release provisions full effect, including provisions concerning unknown, unsuspected, or future claims. It barred and enjoined settlement-class members and the Plan from bringing or pursuing other actions asserting the released claims against the releasees. The court also found that the defendants had complied with the notice requirements of the Class Action Fairness Act to the extent possible.

Fees, expenses, and plaintiff awards

The court found class counsel’s litigation expenses reasonable and awarded $19,574.41 from the settlement fund. It also awarded class counsel attorney fees equal to 30 percent of the common fund, specifically $145,500.

The court awarded each named plaintiff—Jason C. Fritton, Marea Gibson, Brian W. Motzenbeeker, Dawn Duff, and Christopher Shearman—a $5,000 case-contribution award. The court stated that the plaintiffs devoted time and effort to the settlement, including conferring with their attorneys, reviewing discovery materials and draft discovery responses, and gathering relevant documents.

The court approved the plan for allocating the settlement fund as fair, reasonable, and adequate. It retained jurisdiction to implement the settlement, administer it, enter additional orders, and resolve disputes arising under the settlement.

Disposition

The court granted final approval of the settlement and settlement class, approved the allocation plan, awarded fees, expenses, and case-contribution payments, and dismissed the amended complaint and action against the defendants with prejudice.