Middle Rider v. Moving Solutions, Inc

Background

On May 1, 2020, the court granted final approval of the parties’ class-action settlement, dismissed the case with prejudice, and entered final judgment. The settlement totaled $470,000, of which Moving Solutions was responsible for paying $20,000 to the settlement administrator by December 28, 2020. The plaintiffs later notified the court that Moving Solutions had not made that payment.

The court ordered Moving Solutions and its principal, Rick Philpott, to respond to the plaintiffs’ proposed solutions. Philpott stated that the court had authority to impose sanctions for the nonpayment and represented that Moving Solutions intended to contribute the required funds when funds became available. After a hearing and an unsuccessful settlement conference, the plaintiffs proposed a solution to ensure timely distribution of the full settlement amount.

Ruling

The court modified its Order Granting Final Approval. Plaintiffs’ counsel’s fees would cover Moving Solutions’ $20,000 shortfall, and counsel would receive only $97,500 from the funds already deposited with the class administrator. Counsel retained the right to pursue collection of the $20,000 in fees from Moving Solutions and/or its principals.

The court stated that neither the class members nor the class administrator would be affected by Moving Solutions’ failure to contribute the funds on time. All other terms and conditions of the final-approval order remained in effect, and the court stated that no additional notice was required.