Quero v. Rosenfelt

Background

The complaint sought certification of a class under Federal Rule of Civil Procedure 23, along with declaratory and injunctive relief and attorney fees. The plaintiffs submitted a proposed settlement, and the defendant consented to final approval.

Settlement Class

For settlement purposes, the court certified a class consisting of individuals who obtained a TCI Loan and who were enrolled at TCI or on an approved leave of absence when the school closed, or who withdrew from TCI no more than 120 days before the school closed. The class also includes parents who obtained a TCI Loan for such a student. It excludes individuals who have died and individuals who have applied for or received a closed-school discharge of a TCI Loan.

The court found that the class met the requirements of Rule 23(a) and Rule 23(b)(2). The court cited more than 500 potential class members, common legal questions, claims typical of the class, and the named plaintiffs’ ability to protect the class’s interests. It also found that the settlement’s injunctive relief applied to the class as a whole.

Settlement Terms and Approval

The court found the settlement fair, reasonable, and adequate. It determined that the settlement resulted from arm’s-length negotiations and provided substantial relief, including requiring the United States Department of Education to promptly mail class members notice that they may submit applications for closed-school discharges of their TCI Loans. The settlement also provides for suspension of collection on certain loans.

The court stated that the settlement does not impair class members’ rights or remedies concerning student-loan discharges. Class members may submit a discharge application at any time, challenge an individual denial, and seek the complete return of payments previously made on their loans.

The court approved the settlement without prior class notice. It found that the settlement provided substantial relief, that the plaintiffs sought only declaratory and injunctive relief, that there was no evidence of collusion, and that delaying relief for notice and a fairness hearing would prejudice the class and impose unnecessary expense.

Order and Disposition

The court appointed Christopher Quero, Courtney Francis, and Kellin Rodriguez as class representatives and appointed the New York Legal Assistance Group as class counsel for the settlement. It approved the settlement as fair, reasonable, and adequate. The order states that the settlement resolves all claims and issues in the case and that those claims are dismissed with prejudice.

The order permits the plaintiffs to submit a claim for reasonable attorney fees under the Equal Access to Justice Act and Rule 23(h) within 90 days. The defendant reserved the right to oppose any fee claim. All terms of the parties’ settlement stipulation were incorporated into the order. Judge George B. Daniels signed the order.