Danger v. Nextep Funding, LLC
- Susan Nelson
- 0:18-cv-00567
- U.S. District Court · District of Minnesota
- 6
In Danger v. Nextep Funding, Judge Nelson approved the class settlement, awarded fees and an incentive payment, and dismissed the action with prejudice.
The order binds the approximately 2,454 potential Nationwide Class Members and 28 Minnesota Class Members covered by the settlement, and it affects LuAnn Danger, Nextep Holdings, LLC formerly known as Nextep Funding, LLC, and class counsel.
What happened
In Danger v. Nextep Funding, LLC, the court reviewed an agreed class-action settlement involving people who signed certain Consumer Pet Lease Agreements with Nextep during specified periods. The court had previously approved the settlement preliminarily and provided notice to potential class members.
The settlement created a $33,500 fund for eligible nationwide class members outside Minnesota and a $13,700 fund for Minnesota class members. LuAnn Danger also received a separate $3,000 service payment, and class counsel received $199,800 for attorneys’ fees, costs, and expenses. No class members objected or asked to be excluded.
Judge Susan Richard Nelson found the settlement fair, reasonable, adequate, and in the class members’ best interests. She granted both approval motions and dismissed the action against Nextep Holdings, LLC, formerly known as Nextep Funding, LLC, with prejudice.
The detailed version
- Danger v. Nextep Funding, LLC · No. 0:18-cv-00567
- Susan Nelson
- Dec. 7, 2020
Background
LuAnn Danger brought this class action on behalf of herself and similarly situated people against Nextep Funding, LLC and Monterey Financial Services, LLC. The opinion states that the claims against Monterey Financial Services had previously been dismissed pursuant to a stipulation. The remaining matter concerned Nextep Holdings, LLC, formerly known as Nextep Funding, LLC.
The court had preliminarily approved the proposed settlement on July 17, 2020. Notice was distributed on August 7, 2020, after the required notice to government authorities under the Class Action Fairness Act. The court held a fairness hearing by videoconference on December 7, 2020.
Settlement Classes and Terms
For settlement purposes only, the court confirmed certification of two classes under Rule 23(b)(3) of the Federal Rules of Civil Procedure:
- The Nationwide Class included people with a United States address who signed a Consumer Pet Lease Agreement with Nextep Holdings, LLC, formerly known as Nextep Funding, LLC, between February 26, 2016, and January 9, 2019, for personal, family, or household purposes. - The Minnesota Class included people with a Minnesota address who signed such an agreement during the same period.
The court stated that there were approximately 2,454 potential Nationwide Class Members and 28 Minnesota Class Members, including Danger. It confirmed that the Rule 23 requirements were met, including numerosity, common legal or factual questions, typicality, adequate representation, and the superiority and manageability of class treatment. The court also confirmed Danger as class representative and appointed James L. Davidson, Jesse S. Johnson, and Greenwald Davidson Radbil PLLC as class counsel.
The settlement terms included:
- A $33,500 Nationwide Settlement Fund for Nationwide Class Members other than Minnesota Class Members. The fund would be distributed proportionally to Nationwide Class Members who submitted valid, timely claim forms, after notice and administration costs. - A $13,700 Minnesota Settlement Fund for Minnesota Class Members who did not exclude themselves, distributed proportionally after notice and administration costs. - A separate $3,000 payment to Danger recognizing her service to the class.
Court’s Findings
The court found that the settlement notice satisfied due-process requirements and Rule 23(e), was the best practicable notice under the circumstances, and gave class members enough information to decide whether to object or opt out. No Nationwide Class Member or Minnesota Class Member objected, and no class member requested exclusion.
The court found the settlement fundamentally fair, reasonable, adequate, and in the best interests of the class members. It approved the settlement’s individual and class releases and stated that the released claims were compromised, settled, released, discharged, and dismissed with prejudice through the proceedings and order. The order was binding on all class members.
Disposition
The court awarded $199,800 to class counsel for attorneys’ fees and reimbursement of costs and litigation expenses. Judge Susan Richard Nelson ordered that:
- The unopposed motion for approval of the incentive award and attorneys’ fees, costs, and expenses was GRANTED.
- The unopposed motion for final approval of the class-action settlement was GRANTED.
- The action against Nextep Holdings, LLC, formerly known as Nextep Funding, LLC, was DISMISSED WITH PREJUDICE.
The court directed that judgment be entered accordingly.
Read the full 6-page opinion on CourtListener, the free public archive maintained by the Free Law Project.