ELECTRO SAVINGS CREDIT UNION ASSIGNEE OF JAY WOLFE TOYOTA SCION v. KRISTIE E. MORRIS, el al.

You or someone in your family may have had a consumer loan agreement directly with or that was assigned to Credit Union for a loan used to purchase property repossessed and sold by Credit Union.

The Court sent you a short form notice because you should know about a proposed settlement of a class action lawsuit in which you may be a class member, and about all your options, before the Court decides whether to approve the settlement. If the Court approves it, and after objections and appeals are resolved, Credit Union will cancel debts and try to delete deficiency balance information from credit reports related to the repossessed property. Class members will also receive payments, as described more fully in this package.

This notice explains in greater detail about the lawsuit, the settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them.

The Court in charge is the Twenty First Judicial Circuit Court for St. Louis County, Missouri, and the case is Electro Savings Credit Union v. Kristie Morris, et al., Case No. 17SL-AC27114-02.

The lawsuit claimed Credit Union violated statutory requirements for certain notices sent by Credit Union when attempting to collect Class Members’ loans and repossessing and selling their property. You can read the claims in more detail in the counterclaims of Kristie Morris, Scott Reichert, and Amy Fletcher (collectively, “Class Representatives”) in Important Court Documents.

In a class action, one or more people called Class Representatives sue for other people with similar claims. There are three class representatives in this case: Kristie Morris, Amy Fletcher, and Scott Reichert. All individuals with similar claims to the Class Representatives are “Class Members.” In class actions, one court and one lawsuit resolve the issues for all Class Members, except for those who exclude themselves from the Class. The Honorable Mondonna L. Ghasedi oversees this class action.

The parties disagree over who would have won and what the Class would’ve recovered if they had won. Class Representatives believed they could recover 10% of the principal amount of their loan plus the interest charge and other relief. Credit Union believed Class Representatives and the Class were entitled to nothing (or may even owe Credit Union money). To resolve the dispute, and because both parties are unsure of what would’ve happened in a trial, they agreed to a settlement. That way, they avoid the cost of a trial, and the people affected will get money and other benefits sooner. The Class Representatives and the attorneys believe the settlement is fair and equitable for all Class Members.

Judge Mondonna L. Ghasedi decided everyone who fits this description is a Class Member:

All persons with a secured collateralized loan or financing agreement with Credit Union for personal property and the collateral was repossessed in the period of January 7, 2013 to the present and were mailed a Notice of Our Plan to Sell Property and/or a Personal Property Letter (“presale notice”) in the form of or substantially similar to the form mailed to Morris on March 7, 2017, or mailed to Reichert and Fletcher on May 10, 2018 and/or a post-sale notice in the form of or substantially similar to the notice mailed to Morris on July 20, 2017 or to Reichert and Fletcher on July 27, 2018. Excluded from the Settlement Class are (i) any person against whom Credit Union obtained a final deficiency judgment, (ii) any person who filed for bankruptcy after the date on their presale sale notices and whose bankruptcy ended in a discharge, (iii) subsequent to receipt of the presale or post-sale notice reached a written settlement releasing claims about the presale or post-sale notice, including a release of “any and all” claims or similar language; or (iv) has otherwise released any claims against Credit Union about the presale or post-sale notice.

You’re not a Class Member if Credit Union has obtained a deficiency judgment against you; you filed for bankruptcy after the date on your presale notice and your bankruptcy ended in discharge rather than dismissal; you entered into a settlement releasing claims about the presale or post-sale notice; or you otherwise released any claims against Credit Union about the presale or post-sale notice.

If you are still not sure whether you are included, you can ask for free help. You can call 1-833-404-4961 or visit Important Court Documents for more information.

Credit Union has agreed to provide the Class with settlement benefits with an estimated value exceeding $4,600,000, which includes:

Money

Credit Union has agreed to create a $900,000.00 fund to pay: (a) Class Members; (b) the attorneys’ fees and expenses for representing the Class; and (c) Kristie Morris, Amy Fletcher, and Scott Reichert for their services as Class Representatives. This amount is called the “Cash Fund.”

Deficiency Write-Off

After the Effective Date (as defined in the Agreement) Credit Union will no longer seek to collect any money it claimed you owed after it repossessed your property because of its claim you broke promises in your agreement with Credit Union. These outstanding amounts are called “Deficiency Balances,” and Credit Union has agreed to eliminate these Deficiency Balances and close the accounts connected with them. The value of this benefit to the Class and the Deficiency Balances being eliminated is estimated to be at least $1,700,000. This amount is called the “Deficiency Write-Off.”

Credit Bureau Reporting

After the Effective Date, Credit Union will try to delete deficiency balance information from your credit report with the nationwide consumer reporting companies—Equifax, Experian, and TransUnion—related to the Deficiency Balances and Judgment Write-Offs.

Class Members are strongly encouraged to consult with a tax professional about the tax effects of any money and other benefits (including the Deficiency Write-Off) received from this settlement. The attorneys in this case cannot provide you with any tax advice, and your receipt of benefits under this settlement might have tax consequences.

Every Class Member will receive the benefits of the Deficiency Write-Off. The average payment Class Members will receive is $_____, the maximum is $_____, and the minimum is $_____.

The payment you receive depends on the money you borrowed and the interest rate on your loan.

By doing nothing, you will receive the benefits that come from the settlement, including money.

The Court will hold a hearing on August 9, 2022, at 10:00AM. to decide whether to approve the settlement. Even if Judge Mondonna L. Ghasedi approves the settlement, there may be appeals. It’s always uncertain how an appeal will be resolved and how long it will take. Some appeals take more than a year. Please be patient. You’ll receive your payment if the settlement is approved and after that approval becomes a “final judgment” (i.e. after any appeals are resolved or the time for appealing has passed).

Unless you exclude yourself by following the procedure below, you are a part of the Settlement Class, and that means you can’t sue, continue to sue, or be part of any other lawsuit against Credit Union about the legal issues.  For example, you won’t be able to make any independent claim against Credit Union arising from the written notices (presale and post-sale repossession notices) this lawsuit is about. Staying in the Settlement Class also means all the Court’s orders in this lawsuit will apply to you and legally bind you. To see exactly the legal claims and defenses you give up if you get settlement benefits, please view the Settlement Agreement in Important Court Documents.

If you don’t want benefits from this settlement, but you want to keep the right to sue or continue to sue Credit Union on your own about the legal issues, then you must try to get out of the settlement. This is called “excluding” yourself—or is sometimes called “opting out” of the Settlement Class.

To exclude yourself from the settlement, you must send a letter by mail saying you want to be excluded from Electro Savings Credit Union v. Kristie Morris, et al., Case No. 17SL-AC27114-02. Include your name, address, telephone number, last four digits of your Social Security Number, and the name of any other person on your agreement with Credit Union, along with your signature. The exclusion request must be signed by you and by any co-borrower on your agreement, unless the co-borrower is deceased, in which case you must include a death certificate with your request. You cannot exclude yourself by having an actual or purported agent or attorney acting for you or a group of Class Members sign the letter. You must mail your exclusion request postmarked no later than July 14, 2022, to:

ESCU Settlement
PO Box 23459
Jacksonville, FL 32241

If you ask to be excluded, you’ll get no settlement benefits, and you cannot object to the settlement. You won’t be legally bound by anything that happens. You may sue (or continue to sue) Credit Union about the claims asserted.

No. Unless you exclude yourself, you give up any right to sue Credit Union for the claims this settlement resolves. If you have a pending lawsuit, speak to your lawyer in that case immediately. You must exclude yourself from this Class to continue your own lawsuit. Remember, the exclusion deadline is July 14, 2022. Exclusion requests postmarked later than this date will not be honored.

No. But you may sue, continue to sue, or be part of a different lawsuit against Credit Union about the same claims made.

The Court appointed Martin L. Daesch, Jesse B. Rochman, Craig Richards, and their law firm, OnderLaw, LLC to represent you and other Class Members. These lawyers are called Class Counsel. You will not be charged for these lawyers. They are experienced in handling similar cases against consumer lenders. More information about these lawyers and their firm is available at www.onderlaw.com. You needn’t hire your own lawyer because Class Counsel is working for you. If you want to be represented by your own lawyer, you may hire one at your own expense.

Class Counsel has prosecuted this litigation on a contingent basis and has incurred or advanced all costs, expenses, and attorneys’ fees associated with the lawsuit since their investigation of claims against Credit Union in 2018. Class Counsel has not been paid for their work or received reimbursement for the expenses they have incurred or advanced for the Class Representatives and Class Members. Class Counsel will ask the Court to approve payment of attorney’s fees that does not exceed 35% of the value of the settlement benefits, reimbursement for costs and expenses in an amount not to exceed $30,000. Class Counsel will also request that the Court approve payments of $5,000 each to Kristie Morris, Scott Reichert, and Amy Fletcher (who were co-borrowers on the same loan), for their services as Class Representatives. The fees and expenses would pay Class Counsel for investigating the facts, litigating the case, negotiating the settlement, and paying the costs to administer the settlement.

If you’re a Class Member, you can object to the settlement if you don’t like any part of it. You can explain why you think the Court shouldn’t approve it. The Court will consider your views. To object, you must send a letter saying you object to Electro Savings Credit Union v. Kristie Morris, et al., Case No. 17SL-AC27114-02. Your letter must include your name, address, telephone number, facsimile number (if available), email address (if available), last four digits of your Social Security Number, a statement of your objections, and the reasons and facts you contend support your objections. Your objection must include any documents (including loan documents) you rely upon to support your objection and identify any witnesses you plan to use at the Fairness Hearing (described below). If there is other evidence (e.g., documents) that you rely upon for your objection, you must attach copies to your objection. If you plan to use expert witnesses about your objection, you must provide—with your objection—an expert report for each expert outlining the expert’s opinions and the facts and reasons for the expert’s opinions. You must also state whether you intend to appear at the Fairness Hearing and provide copies of any evidence you intend to use at the hearing. Finally, you must sign and date the objection and include a statement substantially in this form: “I declare (or certify, verify, or state) under penalty of perjury that all of the information in the objection is true and correct. Executed on (date). (Signature).”

Mail the objection to the Court, to Class Counsel, and to Credit Union’s Counsel at the separate addresses below. Your objection must be postmarked no later than July 14, 2022:

If an attorney is submitting the objection for you, besides information and materials discussed above, the objection must include the name, address, telephone number, facsimile number (if available), and email address (if available) of your attorney and a detailed description of the legal authorities supporting each objection.

If you file an objection, Class Counsel or Credit Union’s Counsel may notice and take your deposition, consistent with the Missouri Supreme Court Rules, at an agreed-upon location before the Fairness Hearing and seek any documentary evidence or other tangible things relevant to the objection. Failure by an objector to comply with discovery requests may cause the Court to strike the objection and otherwise deny that person the opportunity to be heard further. The Court reserves the right to tax the costs of any such discovery to the objector or objector’s counsel should the Court determine the objection is frivolous or is made for an improper purpose.

Objecting is telling the Court you don’t like something about the settlement. You can object only if you stay in the Class. Excluding yourself is telling the Court you don’t want to be part of the Class. If you exclude yourself, you have no basis to object because the case no longer affects you.

The Court will hold a Fairness Hearing at 10:00AM on August 9, 2022, at the Twenty First Judicial Circuit, 105 S Central Ave., Clayton, Missouri 63105. At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. Judge Ghasedi will listen to people who have asked to speak at the hearing. The Court may also decide how much to pay to Class Counsel and the Class Representatives. After the hearing, the Court will decide whether to approve the settlement. We don’t know how long these decisions will take.

No. Class Counsel will answer any questions Judge Ghasedi may have. But you are welcome to come at your own expense. If you send an objection, you don’t have to come to Court to talk about it. If you mailed your written objection on time with all the required information, the Court will consider it. You may also pay your own lawyer to attend, but that is unnecessary.

You may ask the Court for permission to speak at the Fairness Hearing. You may speak either for or against the settlement. To speak for the settlement, you must send a letter saying it is your “Notice of Intention to Appear in Electro Savings Credit Union v. Kristie Morris, et al., Case No. 17SL-AC27114-02.” Include your name, address, telephone number, last four digits of your Social Security Number, and your signature. Your “Notice of Intention to Appear” must be postmarked no later than July 14, 2022, and be sent to the Circuit Clerk’s Office, Class Counsel, and Credit Union’s Counsel, at the three addresses provided in question 18.

If you plan to speak at the Fairness Hearing to tell the Court you don’t like something about the settlement, you must submit an objection as detailed in question 18 and include with that objection a statement you intend to appear at the Fairness Hearing. The identity of any witnesses or experts you plan to present at the Fairness Hearing, with evidence you intend to present at the Fairness hearing, must also be included with your objection.

You cannot speak at the hearing if you excluded yourself or if you don’t send in a request with the required information and documents.

This notice summarizes the proposed settlement. More details are in the Settlement Agreement. You can get a copy of the Settlement Agreement by writing to ESCU Settlement, PO Box 23459, Jacksonville, FL 32241, or by visiting Important Court Documents.

You can call 1-833-404-4961, email [email protected] write to ESCU Settlement, PO Box 23459, Jacksonville, FL 32241, or visit the Important Court Documents, where you will find information to help you determine whether you are a Class Member.