Russett v. Northwestern Mutual Life Insurance Company

Background

Elizabeth Russett, Beth Calabrese, and Jan Bullard brought this class action individually and for others similarly situated against The Northwestern Mutual Life Insurance Company. The opinion describes the proposed class as people with a New York mailing address who, between June 21, 2016, and the date of the preliminary-approval order, were charged an additional rate or fee, or a differential in the rate or fee, based on the method they chose to make payments.

The parties entered into a class-action settlement agreement. On May 28, 2020, the court preliminarily approved the settlement and conditionally certified the class under Federal Rule of Civil Procedure 23(b)(3). The court later held a final-approval hearing on October 6, 2020. Two individuals submitted timely and valid exclusion requests and were excluded from the settlement class.

Settlement Approval

The court found that the notice provided by mail and through a settlement website complied with Rule 23 and due process. It also found that the defendant properly and timely notified the appropriate government officials under the Class Action Fairness Act.

The court gave final approval to the settlement in all respects. It found the settlement fair, reasonable, adequate, and in the best interests of the settlement class. In reaching that conclusion, the court considered the disputed factual and legal issues, asserted defenses, litigation risks, the case’s complexity, the information exchanged by the parties, and the arms’-length negotiations conducted with a neutral mediator. The court found no collusion and determined that the class representatives and class counsel adequately represented the class.

Disposition and Relief

The court ordered the parties to implement the settlement agreement and incorporated that agreement into the final judgment. It dismissed the action on the merits and with prejudice. Under the judgment, participating class members released the covered claims arising from alleged rates or fees, or differences in rates or fees, associated with payments by mail, including claims under New York General Business Law §§ 399-zzz and 349 and other legal theories. Upon the settlement’s effective date, the release would bind the participating class members and have preclusive effect, and those class members would be barred from bringing actions based on the released claims.

The court adjudged that $198,333.33 in attorneys’ fees, costs, and expenses was reasonable and approved $5,000 incentive awards for each of the three class representatives. Payments to class members that were not cashed within 180 days of issuance would revert to the Legal Aid Society, Inc. The court retained jurisdiction until the settlement’s effective date over matters concerning administration, completion, enforcement, and interpretation of the settlement. Judge Kenneth Karas directed entry of the final judgment under Federal Rule of Civil Procedure 58.