NOTICE OF CLASS ACTION
CERTIFICATION AND PROPOSED SETTLEMENT
AND FINAL FAIRNESS HEARING
In Rodelle Smith, et al. v. Housing and Community Development Corporation of Hawaii, Civil No. 04-1-0069K, Circuit Court of the Third Circuit (Kona), State of Hawaii
PURSUANT TO RULE 23(D) OF THE HAWAII RULES OF CIVIL PROCEDURE, NOTICE IS HEREBY GIVEN THAT YOUR RIGHTS MAY BE AFFECTED BY A PROPOSED SETTLEMENT:
TO THE FOLLOWING CLASS OF PERSONS (PLAINTIFF CLASS):
All persons who resided in federal public housing projects between May 17, 2002 and August 31, 2004 and who purchased utilities, pursuant to 24 C.F.R. § 965.502, et seq.
NOTICE IS GIVEN THAT:
An Amended Complaint entitled Rodelle Smith, Sheila Tobias, Barbara Barawis, Lewis Glaser, individually and on behalf of all persons similarly situated, v. Housing and Community Development Corporation of Hawaii, (Civil No. 04-1-0069K, Circuit Court of the Third Circuit, State of Hawaii, was filed on August 18, 2004.
The Amended Complaint alleges that the Housing and Community Development Corporation of Hawaii (HCDCH) violated its contract with public housing tenants who are members of the Plaintiff Class by failing to adjust utility allowances provided to such tenants. The Third Circuit Court certified the state-wide Plaintiff Class on October 5, 2005, and amended its certification on July 3, 2006. The Court has appointed the law firms of Alston Hunt Floyd & Ing and Lawyers for Equal Justice as class counsel. Cross-motions for summary judgment were filed by the parties. The Court did not rule on liability or damages.
In order to avoid further litigation, the Parties have agreed to settle the case under the terms and procedures described below. AS A RESULT, IF YOU ARE A MEMBER OF THE CLASSES OF PERSONS DESCRIBED ABOVE, YOUR RIGHTS HAVE BEEN AFFECTED. PLEASE READ THIS NOTICE CAREFULLY.
In general, the Parties have agreed to the following:
1. A Settlement Fund consisting of $2,300,000 will be created by the HAWAII PUBLIC HOUSING AUTHORITY (HPHA), formerly known as the HOUSING AND COMMUNITY DEVELOPMENT CORPORATION OF HAWAII (HCDCH), which shall be responsible for administering and implementing the terms of the settlement.
2. Eligible class members who do not opt-out of the settlement, will share in the Settlement Fund after the payment of court-awarded attorneys fees and costs to the class counsel.
3. The calculation of the potential reimbursement to eligible households in the Plaintiff Class is from May 17, 2002 to and including August 31, 2004.
4. The settlement amount agreed to by the Parties is inclusive of the Class Counsels attorneys fees and costs. Class Counsel will seek in court an award of attorneys fees and costs in the amount of $560,000 or 25 percent of the Settlement Fund. HPHA has not agreed to the payment of that amount and may or may not oppose the motion. HPHA will not oppose the award of attorneys fees to Class Counsel.
5. After payment of the attorneys fees and costs, the balance of the Settlement Fund will be distributed as a reimbursement to eligible households of the Plaintiff Class on a pro rata basis (a percentage of the total amount of utility allowance reimbursements for the eligible households during the period from May 17, 2002 to August 31, 2004). However, THE REIMBURSEMENT AMOUNT TO ELIGIBLE HOUSEHOLDS SHALL FIRST BE APPLIED TO ANY DELINQUENT AMOUNT WHICH THE HOUSEHOLD OWES TO HPHA. THE BALANCE OF ANY REIMBURSEMENT AMOUNT, IF ANY, SHALL THEN BE DISBURSED TO THE ELIGIBLE HOUSEHOLD.
The Third Circuit Court has given Preliminary Approval of this Settlement, and has set a Final Approval and Fairness Hearing before the Honorable Elizabeth Strance at 1:00 p.m. on November 8, 2006, at her Courtroom, Third Circuit Court, Kona Division, 79-1020 Haukapila Street, Kealakekua, Hawaii. IF YOU HAVE NO OBJECTION TO THE SETTLEMENT, YOU DO NOT NEED TO RESPOND OR TO ATTEND THAT HEARING. YOU WILL AUTOMATICALLY BECOME AN ELIGIBLE CLASS MEMBER ONCE THE SETTLEMENT IS APPROVED.
ANY CLASS MEMBER MAY APPEAR AT THE HEARING TO OBJECT TO THE SETTLEMENT, PROVIDED HOWEVER, THAT NO PERSON SHALL BE HEARD, OR BE ENTITLED TO CONTEST THE SETTLEMENT AT THE HEARING UNLESS ON OR BEFORE 4:00 P.M. HST, OCTOBER 6, 2006, THE MEMBER HAS SERVED BY HAND, FAX, OR BY THE FIRST CLASS MAIL, WRITTEN NOTICE OF HIS OR HER INTENTION TO APPEAR, AND SETTING FORTH BRIEFLY THE OBJECTIONS TO THE SETTLEMENT AND THE REASONS, UPON:
Shelby Anne Floyd, Esq.
ALSTON HUNT FLOYD AND ING
Palani Court, Suite 104
74-5620 Palani Road
Kailua-Kona, Hawaii 96740
Fax: (808) 326-4779
If you do not wish to participate in the settlement, you may opt-out by submitting a written request to Class Counsel at the address below by September 15, 2006. If you opt-out of the settlement, you (1) will not be bound by the settlement and (2) WILL NOT RECEIVE ANY OF THE SETTLEMENT FUND.
The foregoing is a summary of the proposed settlement. If you believe you are a member of the Plaintiff Class and have not already received written notice of this Settlement, you must provide your address to Class Counsel at the address listed below. You may also receive further information about the settlement or a copy of the Notice at:
www.hawaiiclassaction.com/smith/settlement.pdf
or request a copy from Class Counsel at the addresses below:
Shelby Anne Floyd, Esq.
ALSTON HUNT FLOYD AND ING
Palani Court, Suite 104
74-5620 Palani Road
Kailua-Kona, Hawaii 96740
OR
Gavin K. Thornton, Esq.
LAWYERS FOR EQUAL JUSTICE
P.O. Box 37952
Honolulu, Hawaii 96837-0952
DATED: Honolulu, Hawaii, August 5, 2006.
(SB05523939 8/5/06)
