Frequently Asked Questions

Transcription

1 Frequently Asked Questions Charles Glass & Ronnie Jennings v. Black Warrior Elec. Mem. Corp. Circuit Court of Marengo County, Alabama, CV What is this lawsuit about? Black Warrior provides electrical service to residents and businesses in certain Alabama counties. Black Warrior is an electric membership cooperative, the activities of which are governed by certain Alabama statutes, including Ala. Code The Named Plaintiffs allege in the Lawsuit, among other things, that Black Warrior has violated section by failing to distribute excess revenues in the manner provided in the statute. Black Warrior denies liability and contends that its business practices are both authorized by the statute and benefit its present and past members. For example, Black Warrior alleges that the patronage capital or capital credits held on its books and credited to the present and former members, such as the Named Plaintiffs, are in fact capital withholdings specifically authorized by Ala. Code , and therefore is not properly characterized as excess revenues under the statute, because those monies have been used to reduce or eliminate Black Warrior s capital indebtedness and/or have been used to finance ongoing and past capital projects, such as power generation and distribution equipment and material. Black Warrior also contends that it has, in fact, distributed its excess revenues to its current and former members through general rate reductions, because its rates are consistently among the lowest of comparable cooperatives in Alabama. 2. What is a class action and who is involved? In a class action one or more people called Class Representatives sue on behalf of other people who have similar claims. The people together are a Class or Class Members. In this case, Charles Glass represents the current members of Black Warrior (called the Present Member Class ), and Ronnie Jennings represents former members of Black Warrior (called the Former Member Class ). Together, Mr. Glass and Mr. Jennings are the Named Plaintiffs, and the members of the Present Member Class and Former Member Class are called Settlement Class Members. One court resolves the issues for everyone in the Classes. Judge Eddie Hardaway is in charge of this class action. 3. Why is there a Settlement? The Court did not decide in favor of either the Named Plaintiffs or Black Warrior. Both sides agreed to the Settlement after extensive negotiations and exchanges of information. Settlement avoids the cost and risk of a trial, and the Classes will get compensation. The Named Plaintiffs and the attorneys for the Classes think the Settlement is best for all Class Members. 4. How do I know if I am part of the Settlement? You are a member of the Present Member Class if you are an individual or entity which was at any time a member of Black Warrior, and who is a member of Black Warrior as of

2 the date of the Final Order and Judgment. Excluded from the Present Member Class are: (a) persons who timely and properly exclude themselves from the Settlement Class as provided in this Agreement; (b) persons who, as of the date of entry of the Final Order and Judgment, have executed an individual release of all claims within the scope of the Release proposed by this Agreement; and (c) all Alabama state judges, their spouses, and persons within the third degree of relationship to them. You are a member of the Former Member Class if you are an individual or entity which was at any time a member of Black Warrior, but are no longer a member of Black Warrior as of the date of the Final Order and Judgment. Excluded from the Former Member Class are: (a) persons who timely and properly exclude themselves from the Settlement Class as provided in this Agreement; (b) persons who, as of the date of entry of the Final Order and Judgment, have executed an individual release of all claims within the scope of the Release proposed by this Agreement; and (c) all Alabama state judges, their spouses, and persons within the third degree of relationship to them. 5. What does the Settlement provide? Black Warrior has agreed to create a settlement fund totaling $10.5 million. Out of that fund will be paid (1) attorneys fees and expenses awarded to Class Counsel, and (2) benefits to be paid to Settlement Class Members who file a timely and valid claim with the Settlement Administrator. Individual benefits are calculated under a benefit formula, explained in the next question. In addition, the Settlement provides a formula and procedure for Black Warrior to follow in 2015 and in future years pertaining to distribution of excess revenues. 6. How much will I get? Class members who properly complete and timely submit a valid claim form and any additional identifying information that might be requested, provided the court grants final approval of the settlement, will be entitled to a share of the cash settlement fund as determined under the following formula: [(a) + (b)] x (multiplied by) (d) (c) where: (a) is the amount of the Class Member s assigned patronage capital or capital credits showing on the books of Black Warrior, as of December 31, 2014; (b) equals $10 per year for each year, or any portion thereof, prior to 1975 in which the Class Member was a member of Black Warrior; (c) is the aggregate amount of all patronage capital or capital credits showing on the books of Black Warrior, as of the date of the Final Order and Judgment; and (d) is the Net Settlement Fund (which is the $10.5 million fund less Attorneys Fees and

3 Expenses). Furthermore, immediately upon the payment of Benefits to Settlement Class Members, all Remaining Patronage for all Settlement Class Members shall be converted on Black Warrior s books to Member Equity. 7. What must I do to receive my cash payment? A Member of the Settlement Classes wishing to receive a cash payment must complete a Claim Form and return it to the Settlement Administrator at the following address: Black Warrior Electric Settlement Administrator Post Office Box 487 Birmingham, Alabama All Claim Forms must be received by the Settlement Administrator no later than November 10, How can I get a Claim Form? Claim Forms were included in the Notice packages that were mailed to known class members for whom Black Warrior had a current address. You may also download and print a Claim Form from this website or request one from the Settlement Administrator by calling , or by sending a written request to Black Warrior Settlement Administrator, Post Office Box 487, Birmingham, Alabama Do I have a lawyer in this case? The Court has decided that the following lawyers are qualified to represent you and all Class Members. Together, the three firms are called Class Counsel. They are experienced in handling similar cases. They are: (1) for the Former Member Class, John Gibbs, Gibbs & Sellers, P.C., 108 North Walnut Street, Demopolis, AL 36732; and (2) for the Present Member Class, Brian P. Strength and Joel Connally, Strength & Connally, LLC, 402 North Main Street, Tuskegee, AL 36083, and James E. Fleenor, Jr. and Wilson F. Green, Fleenor & Green LLP, 204 Marina Drive, Ste. 200, Tuscaloosa, AL How will the lawyers be paid? Class Counsel will request that the Court award fees and expenses to be paid from the $10.5 million settlement fund, totaling no more than $2.5 million. The fees would pay Class Counsel for investigating the facts, litigating the case, and negotiating the Settlement. No fees and expenses are payable unless the Court finds them reasonable. The fees, expenses and payments that the Court awards will be paid out of the cash settlement fund. Black Warrior has agreed not to oppose these fees and expenses. 11.How do I tell the Court if I don t like the Settlement?

4 Instead of appearing at the Fairness Hearing, you may object in writing to certification of the class action; the fairness, reasonableness or adequacy of the Settlement; the payment of attorneys fees, costs and expenses; and/or entry of Final Judgment. If you are a Settlement Class Member and you want to present written objections for consideration by the Court, you must file a written Statement of Objections with the Court at the following address: Hon. Kenny Freeman Clerk, Circuit Court of Marengo County, Alabama P.O. Box Linden, AL and also send a copy of the Statement of Objections by hand-delivery, by first-class mail, or by electronic mail to each of the following attorneys: For the Present Member Class: For the Former Member Class: Wilson F. Green John Gibbs Fleenor & Green LLP Gibbs & Sellers, P.C. 204 Marina Drive Ste North Walnut Street Tuscaloosa, Alabama Demopolis, Alabama wgreen@fleenorgreen.com jgibbs@gibbsandsellers.com For Black Warrior: Woodford W. Dinning, Jr. Lloyd & Dinning LLC 501 North Walnut Avenue Demopolis, Alabama wwdjr@ldllc.com You may write your own Statement of Objections containing the information outlined below, or you may do it through your own attorney. Your Statement of Objections must be filed and served no later than July 15, 2015, which is fifteen (15) days prior to the Fairness Hearing. The Statement of Objections should contain the following information: (a) contain a caption or title that identifies it as Objection to Class Settlement in Glass & Jennings v. Black Warrior Electric Membership Corporation, CV ; (b) set forth the specific reason(s), if any, for each objection, including all legal support you wish to bring to the Court s attention and all factual evidence you wish to introduce in support of the objection; (c) include your name and address; (d) specify the address for service at which Black Warrior provided electrical service to you; and (e) be personally signed by you. 12. How do I opt out of the Settlement if I don t want to be included? You may elect to be excluded from the settlement. If you elect to be excluded, you will not share in any Class Benefits or otherwise participate in the Settlement, but you will not be barred by the Final Judgment from pursuing individual claims against Defendant in a

5 separate lawsuit. If you are a Settlement Class Member and you want to be excluded from the Settlement, you must expressly state your request in a written Exclusion Request. You must send your Exclusion Request to Black Warrior Settlement Administrator, Post Office Box 487, Birmingham, Alabama by July 15, 2015, and if sent by United States Postal Service, it must be postmarked by that date. In order to be valid, the letter requesting exclusion must contain certain information. It must: (a) contain a caption or title that identifies it as Request for Exclusion in Glass & Jennings v. Black Warrior Electric Membership Corporation, CV ; (b) include your name and address, and state whether you are a member of the Present Member Class or the Former Member Class; (c) specify the address for service at which Black Warrior provided electrical service to you; (d) specify that you want to be excluded from the Present Member Class or Former Member Class (whichever is applicable); and (e) be personally signed by you. If an Exclusion Request does not include all the foregoing information or if it is not timely submitted, then it shall be deemed invalid. If you submit an invalid Exclusion Request, it will be treated as if you did not submit any Exclusion Request at all, and you will be deemed to be a Settlement Class Member if the Court finally certifies the classes and approves the Agreement. You cannot opt out on behalf of anyone other than yourself. 13.When and where will the Court decide whether to approve the Settlement? The proposed Settlement must be finally approved by the Court. On July 30, 2015 at 1:00 p.m., in the Marengo County Circuit Court in Linden, Alabama, a hearing will be held on whether the proposed Settlement should be approved as fair, reasonable and adequate. If there are objections, the Court will consider them. Judge Hardaway will listen to people who have asked to speak at the hearing. The Court may decide how much to pay to Class Counsel. After the hearing, the Court will decide whether to approve the Settlement. We do not know how long these decisions will take. 14. Do I have to come to the hearing? No. Class Counsel will answer questions Judge Hardaway may have. If you request to opt out or if you send an objection, you don t have to come to Court to talk about it. You may also pay your own lawyer to attend, but it s not necessary. 15. What happens if I do nothing at all? If you are a Settlement Class Member and do nothing at this time, then you will be treated as a Settlement Class Member, whether or not you submit a Claim Form. If the Court approves the proposed settlement, Settlement Class Members who submit a timely and valid Claim Form will be entitled to receive cash Benefits. In addition, any Released Claims that Settlement Class Members have against Black Warrior will be resolved by the Settlement, whether or not any particular Settlement Class Member submits a Claim Form. Accordingly, if you are a Settlement Class Member and the settlement is approved, then you will have the rights and responsibilities that result from the Court s Final Judgment.

6 16. How can I get additional information? You may obtain a copy of the Settlement Agreement and further information concerning the settlement, the Fairness Hearing, and Class Benefits by either from this website, by calling , or by sending a written request to Black Warrior Settlement Administrator, Post Office Box 487, Birmingham, Alabama All questions relating to the proposed Settlement should be directed to Named Plaintiffs Counsel. If you wish to communicate with Named Plaintiffs Counsel, you may do so using the following addresses and numbers: For the Present Member Class: For the Former Member Class: Wilson F. Green John Gibbs Fleenor & Green LLP Gibbs & Sellers, P.C. 204 Marina Drive Ste North Walnut Street Tuscaloosa, Alabama Demopolis, Alabama wgreen@fleenorgreen.com jgibbs@gibbsandsellers.com