McClellan Settlement
www.McClellanSettlementInfo.com

Frequently Asked Questions

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Basic Information

1      WHAT IS THE NOTICE?

The Settlement Notice has been sent to all Settlement Class Members. It explains the lawsuit, the Settlement, what benefits are available to you, and your legal rights, including your right to object to the Settlement or to exclude yourself from the Settlement (sometimes referred as to “opting-out”).

The Court in charge of this case is the United States District Court for the Central District of California, and the case is known as McClellan v. Chase Home Finance LLC, et al., Case No. 8:12-cv-01331-JGB-JEM. The Court has preliminarily approved this Settlement.

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2      WHAT DO THE TERMS USED IN THE NOTICE MEAN?

  1. “Lawsuit” and “Class Action” mean the lawsuit, generally known as McClellan v. Chase Home Finance LLC, et al., Case No. 8:12-cv-01331-JGB-JEM.
  2. “Plaintiffs” and “Class Representatives” mean Michael and Marta McClellan, the named Plaintiffs in the Lawsuit.
  3. “Class Counsel” means the attorneys for the Settlement Class, which the Court preliminarily has designated to be the law firms of Atkinson, Andelson, Loya, Ruud & Romo and Harbin & McCarron.
  4. “Chase” or “Defendant” means JPMorgan Chase Bank, N.A., on its own and as successor by merger to Chase Home Finance, LLC and Chase Home Finance, Inc.
  5. “Release” means the Release of claims that are being given up to stay in the Settlement Class, as set forth in Section 9 of the Settlement Agreement.
  6. “Settlement Administrator” means the company that will administer the Class Action Settlement.
  7. “Settlement Class Member” means each member of the “Settlement Class.”
  8. “Settlement Class” means all individuals identified on the agreed upon Settlement Class List, which reflects each California resident who, on or after July 15, 2011:
    • was the borrower on a home loan or home equity line of credit (either owned or serviced by Chase) that was secured by a mortgage or deed of trust on property located within the State of California
    • entered into and completed a short sale of the property with Chase’s consent; and
    • allegedly was required to make a payment to Chase in some amount over and above the proceeds received from a short sale, in order to obtain written consent for the short sale.

      Excluded from the Settlement Class are any: (i) individuals who are or were during the Class Period officers or directors of the Defendants or any of their respective affiliates; (ii) any justice, judge, or magistrate judge of the United States or any State, their spouses, and persons within the third degree of relationship to either of them, or the spouses of such persons; (iii) all borrowers whose home loan or home equity line of credit was owned by a government-sponsored enterprise at the time of the short sale; and (iv) all borrowers who file a timely and proper request to be excluded from the Settlement Class in accordance with Section 10 of the Settlement Agreement.
  9. “Class Period” means July 15, 2011 through March 30, 2015.
  10. “Settlement” means the terms and conditions of the proposed settlement of the Lawsuit set forth in the Settlement Agreement filed with the Court on February 19, 2015, as modified, at the Court’s request, through the Amended Settlement Agreement.
  11. “Seller Contribution” means the amount of money paid by a mortgagor or trustor over and above the proceeds from a short sale of property.

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THE CLAIMS IN THE LAWSUIT

3      WHO ARE THE PARTIES TO THIS LAWSUIT?

Michael and Marta McClellan are Plaintiffs in the Lawsuit and have been preliminarily designated by the Court as Class Representatives for Settlement purposes only to maintain the Lawsuit on behalf of all Settlement Class Members. Chase is the Defendant.

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4      WHAT IS THIS LAWSUIT ABOUT?

Two California borrowers (“Plaintiffs”) who participated in a short sale of property in California have brought a putative class action against Chase, alleging violations of a California law that took effect on July 15, 2011. That new law makes it unlawful for a “holder of a note” to “require the trustor, mortgagor, or maker of the note to pay any additional compensation, aside from the proceeds of the sale, in exchange for the written consent to the sale.” Cal. C.C.P. § 580e(b). The Lawsuit alleges that Chase violated this law by requiring Plaintiffs to pay money above and beyond the proceeds of the short sale in exchange for Chase’s written consent to the sale. The Lawsuit asserts various claims based upon this alleged violation on behalf of the Plaintiffs and all persons in the Settlement Class. The Lawsuit seeks monetary damages, punitive damages, attorneys’ fees, and injunctive relief.

Chase expressly denies Plaintiffs’ allegations and all charges of wrongdoing and liability. There has been no Court decision on the merits of this case and no finding that Chase or any other party committed any wrongdoing. There has been no resolution of any of the factual or legal allegations made against Chase.

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5      WHY IS THERE A SETTLEMENT?

Plaintiffs and Class Counsel believe that the claims against Chase have merit, but recognize that continued litigation will involve significant expense and time and that Plaintiffs might not be able to obtain class certification or prove some or all of their claims. In Class Counsel’s judgment, were this case to proceed, it is uncertain whether Plaintiffs would succeed at the certification stage, whether Chase would be found to have violated the new law as alleged, and whether the amount of damages awarded, if any, would be more than the amount of the proposed Settlement. Thus, Plaintiffs and their attorneys engaged in arm’s-length negotiations with Chase and its attorneys. The negotiations led to the proposed Settlement. Plaintiffs and their attorneys believe that the Settlement is fair, reasonable, adequate, and in the best interests of the Settlement Class.

Chase denies any wrongdoing or that it has violated any laws. However, Chase has agreed to settle the lawsuit in order to avoid the time and expense of continuing to defend the Lawsuit.

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6      WHAT IS THE PROPOSED SETTLEMENT?

Without admitting that it did anything wrong and in exchange for the Release of claims described below and in the Settlement Agreement, Chase has agreed to pay up to the total amount of $289,005.54 (the “Settlement Payments”) to resolve claims by Settlement Class Members. Settlement Class Members who do not opt out will receive a check in the amount of the Seller Contribution paid.

In addition, Chase has agreed that it will not oppose: (1) any request by Class Counsel for an award of attorneys’ fees and litigation costs in the total amount of $150,000.00; and (2) any request by the Named Plaintiffs for a Case Contribution Award in the total amount of $3,000.00. Chase will pay these amounts separate and apart from any Settlement Payments to Settlement Class Members.

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7      WHEN WOULD I RECEIVE MY SETTLEMENT PAYMENT?

The Settlement Administrator will mail Settlement Payments to all Class Members who have not excluded themselves from participation in the Settlement by November 2, 2015.

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8      CAN I CONTEST THE AMOUNT OF MY SETTLEMENT PAYMENT?

The deadline for Class Members to contest Settlement Payment amounts was June 15, 2015.

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9      WHAT AM I GIVING UP TO BE PART OF THE SETTLEMENT?

If you are a Settlement Class Member and unless you exclude yourself, you are staying in the Settlement Class. That means you can’t sue, continue to sue, or be part of any other lawsuit against Chase about the issues that were or could have been raised in this case or that are otherwise covered by the Release. It also means that all of the Court’s Orders concerning the Settlement Class will apply to you and legally bind you, including the Release of claims described in detail in Section 9 of the Settlement Agreement. This Release provision describes the legal claims that you give up if this Settlement is approved and you do not exclude yourself. Please carefully read this Release provision and the Settlement Agreement.

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SETTLEMENT RIGHTS AND OPTIONS

10      WHAT ARE MY RIGHTS AND OPTIONS REGARDING THE PROPOSED SETTLEMENT?

As a Settlement Class Member, you may do nothing, exclude yourself from the Settlement, or object to the Settlement. Each option is described below.

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11      WHAT IF I DO NOTHING?

Class Members are not required to do anything to get money from the Settlement. The Settlement is now effective. The Settlement Administrator will mail individual Settlement Payments to all Class Members who have not excluded themselves by November 2, 2015.

Class Members who did not request to be excluded from the Lawsuit, and did not object to the Settlement in the manner provided below, will be deemed to have approved the Settlement and to have waived any objections, and will be forever foreclosed from objecting to the fairness or adequacy of the Settlement, any payment of attorneys’ fees and costs, any case contribution awards to the Class Representatives, or any other aspect of the Settlement. Class Members will also be subject to the Release of claims described above and in greater detail in Section 9 of the Settlement Agreement.

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12      HOW DO I GET OUT OF THE SETTLEMENT?

The deadline for Class Members to request exclusion from the McClellan Settlement was July 20, 2015.

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13      HOW DO I OBJECT TO THE SETTLEMENT?

The deadline for Settlement Class Members to object to the Settlement was August 17, 2015.

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THE LAWYERS REPRESENTING YOU

14      DO I HAVE A LAWYER IN THIS CASE?

The Court appointed the following lawyers to represent Settlement Class Members. Together, these lawyers are called Class Counsel. Class Members will not be charged any money to pay for these lawyers.

Jon R. Mower, Esq.
Dan J. Bulfer, Esq.
ATKINSON, ANDELSON, LOYA, RUUD & ROMO
20 Pacifica, Suite 1100
Irvine, CA 92618
Telephone: (949) 453-4260
Facsimile: (949) 453-4262
Bruce Alan Harbin, Esq.
HARBIN & MCCARRON
1801 Park Court Place Building G
Santa Ana, CA 92701
Telephone: (714) 550-0941
Facsimile: (714) 550-0468

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15      HOW WILL CLASS COUNSEL BE PAID?

The attorneys for the Plaintiffs and Settlement Class Members will be paid independently of any Settlement Payments to Settlement Class Members. The Court held a Final Approval Hearing and granted Final Approval of the Settlement on August 31, 2015. The Court awarded $150,000.00 for attorneys’ fees and costs and awarded the Class Representatives Michael and Marta McClellan a case contribution award of $1,500.00 each.

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THE FINAL APPROVAL HEARING

16      WHAT IS THE DIFFERENCE BETWEEN PRELIMINARY AND FINAL APPROVAL?

On March 30, 2015, the United States District Court for the Central District of California granted preliminary approval of the proposed Settlement of this Lawsuit. This means the Court had preliminarily reviewed the terms of the Settlement and authorized the dissemination of notice to the Class.

At the Final Approval Hearing on August 31, 2015, the Court considered whether the Settlement was fair, reasonable, and adequate and granted Final Approval of the Settlement. The Settlement is now effective.

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17      WHEN AND WHERE WILL THE FINAL APPROVAL HEARING BE HELD?

The Court held a Final Approval Hearing and granted Final Approval of the Settlement on August 31, 2015. The Settlement is now effective.

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18      DO I HAVE THE RIGHT TO APPEAR AT THE FINAL APPROVAL HEARING?

The deadline for Class Members to file and serve a notice of intent to appear at the Final Approval Hearing was August 17, 2015. The Court held a Final Approval Hearing and granted Final Approval of the Settlement on August 31, 2015. The Settlement is now effective.

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ADDITIONAL INFORMATION

19      WHAT IF MY ADDRESS HAS CHANGED?

If you are a Settlement Class Member, it is your responsibility to keep the Settlement Administrator apprised of your correct address at all times until receipt of your Settlement Payment. Please sign and mail any change of address along with your telephone number, former address, and new address to:


Chase-McClellan Settlement
c/o GCG
P.O. Box 10172
Dublin, OH 43017-3172

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20      WHERE CAN I GET MORE DETAILS ABOUT THE SETTLEMENT?

The foregoing is only a summary of the Lawsuit and the proposed Settlement and does not purport to be comprehensive. More details are contained in the Complaint and Settlement Agreement. Please read the Settlement Agreement carefully.

In addition, the Settlement Agreement, and other papers filed in the Lawsuit, may be inspected during regular business hours in the Clerk’s Office of the United States District Court for the Central District of California – Eastern Division (Riverside), located at 3470 Twelfth Street, Riverside, CA 92501-3801, from 10:00 a.m. to 4:00 p.m., Monday through Friday. You may also log on to PACER at https://ecf.cacd.uscourts.gov/cgi-bin/login.pl, using the case name and number listed on the first page of the Notice to examine the pleadings in this Lawsuit for a nominal fee.

If you need more information or have any questions, you may call Class Counsel at the telephone number above. Please refer to the McClellan v. Chase Home Finance Settlement.

DO NOT CONTACT THE COURT OR CHASE FOR INFORMATION ABOUT THIS PROPOSED SETTLEMENT

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