Circuit Court of Cook County, Illinois (Chancery Division)

Transcription

1 Circuit Court of Cook County, Illinois (Chancery Division) If You Resided at the Crossroads Hotel in Chicago, Illinois, between June 3, 2013 and March 23, 2017, You Could Get Money from a Class Settlement Valued at $85,000. A State Court authorized this notice. This is not a solicitation from a lawyer. Please read this Notice carefully. Your legal rights may be affected whether or not you act. This Settlement resolves litigation concerning alleged violations of the Chicago Residential Landlord and Tenant Ordinance with respect to a certain Single Room Occupancy ( SRO ) building known and advertised as the Crossroads Hotel located at 5300 South Pulaski Road in Chicago, Illinois in the case entitled Calhoun, et al. v. Crossroads Hospitality, Inc., et al., Case No CH (the Litigation ). You may be eligible for payment from a settlement fund that has been created for this Settlement. A Claim Form is available online at The Court has not expressed any opinion concerning the truth of any allegations or defenses asserted in the Litigation. This Notice is solely to advise you of the proposed Settlement of the Litigation and of your rights in connection with the Settlement. IF YOU ARE A FORMER TENANT (a tenant on or after June 3, 2013, but not a tenant as of March 23, 2017) AT THE CROSSROADS HOTEL PURSUANT TO A VALID ORAL OR WRITTEN LEASE AGREEMENT FOR CONTINUOUS OCCUPANCY OF 32 DAYS OR LONGER YOUR LEGAL RIGHTS AND OPTIONS IN THE SETTLEMENT You must file a Claim Form by June 1, 2017, in order to receive payment from the Settlement. IF YOU ARE A CURRENT TENANT (tenant as of March 23, 2017) AT THE CROSSROADS HOTEL PURSUANT TO A VALID ORAL OR WRITTEN LEASE AGREEMENT FOR CONTINUOUS OCCUPANCY OF 32 DAYS OR LONGER OBJECT BY JUNE 1, 2017 GO TO THE HEARING ON JULY 20, 2017 Your class claim will automatically be processed and you do NOT need to submit a Claim Form. However, if you vacated the property after March 23, 2017, then you must submit an Address Update Form in order to receive payment. Address Update Forms should be submitted promptly. You can file an objection with the Court explaining why you disagree with the Settlement. See Question 18 for specifics. Ask to speak in Court about the Settlement. See Questions 18 and 20. EXCLUDE YOURSELF BY JUNE 1, 2017 The only option that allows you to exclude yourself from the settlement and retain your rights against the Defendants. See Questions 13 and 14 for specifics. These rights and options and the deadlines to exercise them are explained in this Notice. A copy of the Settlement is available online at 1

2 WHAT THIS NOTICE CONTAINS BASIC INFORMATION What is this Notice about? 2. What is Crossroads Hotel? 3. What is the Settlement Class Period? 4. What is the lawsuit about? 5. What is a class action? WHO IS INCLUDED IN THE Lawsuit Who are the Defendants? 7. How do I know if I am in the Settlement Class? THE SETTLEMENT S BENEFITS What does the Settlement provide? 9. How much money can I get? 10. When will I get a payment? 11. Can the Defendants object to paying me? HOW TO GET A PAYMENT CHECK How can I get a payment check? Page 3 Page 3 Page 4 Page 5 RIGHT TO EXCLUDE YOURSELF Who has the right to be excluded? 14. How do I exclude myself from the Settlement Class? REMAINING IN THE SETTLEMENT CLASS What am I giving up if I remain a member of the Settlement Class? Page 6 Page 6 THE LAWYERS REPRESENTING YOU Do I have a lawyer representing me? 17. How will the lawyers be paid? Page 7 OBJECTING OR COMMENTING ON THE SETTLEMENT, PLAN OF DISTRIBUTION, ATTORNEYS FEES, LITIGATION EXPENSES, AND AWARDS TO CLASS REPRESENTATIVES How do I object or comment on the Settlement? THE FAIRNESS HEARING When and where will the Court consider the Settlement, the plan of distribution, request for attorneys fees, litigation expenses and awards to Class Representatives? 20. Do I have to come to the hearing? 21. May I speak at the hearing? GET MORE INFORMATION Where can I get more information? Page 7 Page 8 Page 8 2

3 1. What is this Notice about? BASIC INFORMATION This Notice is to inform you about the Settlement that has been reached which may affect your rights, including your right to file a claim, object to, or exclude yourself from the Settlement. You have the right to know about the Settlement and about your legal rights and options before the Court decides whether to approve the Settlement. The Court in charge is the Circuit Court of Cook County, Illinois (Chancery Division). The case is called Calhoun, et al. v. Crossroads Hospitality, Inc., et al., Case No CH (the Litigation ). The people that sued are called the Plaintiffs, and the company and persons they sued are called the Defendants (see Question 6). 2. What is Crossroads Hotel? The Litigation concerns the Single Room Occupancy ( SRO ) building known and advertised as the Crossroads Hotel located at 5300 South Pulaski Road in Chicago, Illinois. 3. What is the Settlement Class Period? The Settlement Class Period is the time period commencing as of June 3, 2013, and continuing through March 23, 2017, which was the date of the Court s order granting preliminary approval of the Settlement. 4. What is the lawsuit about? Plaintiffs have asserted failure by the Defendants to comply with certain provisions of the Chicago Residential Landlord and Tenant Ordinance ( RLTO ), wrongful eviction, and breach of the implied warranty of habitability at the Crossroads Hotel. Copies of certain pleadings in which these contentions are detailed are available at 5. What is a class action? In a class action, one or more persons or businesses called class representatives sues on behalf of a group or a class of others with similar claims. If the Court determines that a case should proceed as a class action, everyone s claims can be combined into a single proceeding, creating efficiencies for the parties and the courts. In a class action, the court resolves the issues for all class members except those who exclude themselves from the Class. 6. Who are the Defendants? WHO IS INCLUDED IN THE LAWSUIT? The Defendants are Crossroads Hospitality, Inc., De Patel, and Rohit Patel. 7. How do I know if I am in the Settlement Class? The Settlement Class consists of all persons who (a) lived at the Crossroads Hotel located at 5300 South Pulaski Road, Chicago, Illinois, as a primary residence or domicile (b) for any period of time of thirty-two (32) continuous days or longer (c) between June 3, 2013 and March 23, To qualify, you must be living, or have lived, in a dwelling unit at the Crossroads Hotel pursuant to a valid oral or written lease agreement with Defendants. Members of the Settlement Class living at the Crossroads Hotel as of March 23, 2017, are referred to as Current Tenants. Members of the Settlement Class not living at the Crossroads Hotel as of March 23, 2017, are referred to as Former Tenants. 3

4 Excluded from this Class are the Court, the Defendants, and any family members of the foregoing, except that employees of Defendants who do not have an ownership interest in any Defendant may be Class Members if they otherwise satisfy the Class Definition. Also excluded are clients of Transitional Shelter organizations as that term is used at Section (c) of the Chicago Residential Landlord and Tenant Ordinance, including without limitation clients of Thresholds and Heartland and like organizations. 8. What does the Settlement provide? THE SETTLEMENT S BENEFITS The proposed Settlement establishes: (a) Settlement Funds totaling $188,500, and (b) a Class Settlement valued at $85,000. The Settlement Funds will be used to pay eligible claimants in this Litigation. The cost to administer the Settlement as well as attorneys fees, litigation expenses and payments to the Class Representatives will also come out of the Settlement Funds (see Question 9.A). The Settlement Agreement and the papers filed in support of the Settlement are available for review and download at or you can request copies by calling How much money can I get? A. Members of the Settlement Class who are Former Tenants and who file a valid and timely Class Claim Form are entitled to share in a one-time payment per tenancy of $100 up to a total of $75,000 in payments. If the value of valid claims made by Former Tenants exceeds $75,000 (the $75,000 Cap ), each claim shall be reduced pro rata. B. Members of the Settlement Class who are Current Tenants (who need not file a Class Claim Form), are entitled to share in a one-time payment per tenancy of $100 up to a total of $10,000 in payments. In the event fewer than 100 Current Tenant Class Members are eligible to receive payment, the remaining monies shall be applied to satisfy the claims of Former Tenant. In the event more than 100 Current Tenants are eligible to receive payment, required payments in excess of $10,000 to such Current Tenants shall count against the $75,000 Cap. C. Current Tenants who vacate the property are required to update their contact information with the Class Administrator in order to receive payment. Your payment may be delayed, or you may not receive payment at all, if you fail to notify us promptly of your new address. D. In the event the total number of payouts is such that it would exceed $85,000, all payments shall be reduced pro rata. E. The amount to be paid to each participating member of the Settlement Class will be determined per tenancy, not per person. A tenancy refers to the period of time when the same person(s) lived in a dwelling unit pursuant to a valid oral or written lease agreement with Defendants. F. Equal or Unequal Payments? If there is more than one participating member of the Settlement Class for the same tenancy, then such persons will share equally in the payment. However, members of a tenancy may request an unequal distribution as follows: If all of the participating Settlement Class Members for a given tenancy submit a written, notarized request for payments to be divided unequally among or between the joint tenants of a single tenancy, the Class Administrator will issue checks according to the instructions in the notarized request. You may obtain an Unequal Distribution Form online at www. CrossroadsHotelSettlement.com. Actual payments to members of the Settlement Class will depend on the number of persons who participate in the Settlement. 4

5 G. Details of the proposed distribution of the Settlement Funds are set forth in the Settlement Agreement, which is posted at In summary, the Settlement Agreement provides for distribution of the Settlement Funds as follows: (a) (b) (c) (d) $85,000 to be allocated, as described above, per tenancy among Current Tenants and Former Tenants who qualify as members of the Settlement Class; $3,500 for the benefit of Plaintiff Antonio Calhoun in settlement of his class claims, individual claims, and an incentive award in the amount of $1,000; The expenses of the Settlement Administrator in the amount of $36,000. In the event that costs and expenses for notice and administration of this Settlement exceed $36,000, Defendants shall be responsible for any overage upon submission of satisfactory proof of said overage to Defendants; $64,000 to plaintiffs counsel as a one-time cash payout in full and final satisfaction of any and all claims by Class Counsel for attorney fees, expenses, and court costs, as provided by the SDRA, SDIA, and any other fee-shifting causes of action. In the event the Court requires Class Counsel to file a fee petition and the Court awards less than $64,000.00, the difference shall be provided as a cy pres award to the Metropolitan Tenants Organization; and In order to receive a payment check you may or may not need to file a valid claim (see Question 12). Further information is available at or by calling When will I get a payment? Payments will be distributed after the Court grants final approval to the Settlement and after any appeals are resolved. If the Court approves the Settlement after the hearing on July 20, 2017, there may be appeals. We don t know how much time it could take to resolve any appeals that may be filed. 11. Can the Defendants object to paying me? If any Defendant has an objection to any claim, they may request mediation of those claims as described in the Settlement Agreement. The costs of mediation are to be borne equally between the parties to the mediation, except that should the Defendants objection to the claim be overruled, the cost of the mediation will be borne solely by the Defendants. In the event more than one thousand (1,000) valid claims are filed in this Settlement, one or more of Defendants may, but are not required to, withdraw from the Settlement. In the event of a withdrawal, claims will not be paid. 12. How can I get a payment check? HOW TO GET A PAYMENT CHECK Members of the Settlement Class who are Current Tenants will receive a payment unless you exclude yourself. See Questions 13 and 14 below about exclusions. However, Current Tenants who have vacated the property must update their contact information with the Class Administrator in order to receive payment. Members of the Settlement Class who are Former Tenants will need to fill out and submit a Claim Form in order to get paid. Claim Forms are available at or you can obtain a copy by calling, toll free, , or by writing to The Notice Company at the address below. To be valid, Claim Forms must be mailed and postmarked no later than JUNE 1, 2017, and addressed to: 5

6 Crossroads Hotel Settlement c/o The Notice Company P.O. Box 455 Hingham, MA May I exclude myself from the Settlement? RIGHT TO EXCLUDE YOURSELF If you are a member of the Settlement Class and you wish to keep your right to sue any of the Defendants about the claims alleged and settled in this case (see Questions 4 and 8), you must exclude yourself. If you exclude yourself, you will not get any money from this Settlement. You may not submit a Claim Form if you exclude yourself from the Settlement. 14. How do I exclude myself from the Settlement Class? In order to exclude yourself from the Settlement Class and keep your individual rights, if any, to sue the Defendants, you must send a letter that includes the following: 1. Your full name, current mailing address and telephone number; 2. A statement saying that you request exclusion from the Crossroads Hotel Settlement Class; 3. State the dates during which you were a resident at the Crossroads Hotel and the unit number in which you were a resident (if you recall this information); and 4. Be signed by you or your representative. To be valid, exclusion requests must be postmarked no later than JUNE 1, 2017, and mailed to: Crossroads Hotel Exclusions c/o The Notice Company P.O. Box 455 Hingham, MA No request for exclusion will be considered valid unless all of the information described above is included. No further opportunity to request exclusion will be given in this Litigation unless ordered by the Court. If you choose to be excluded from the Settlement Class, you are not: (a) entitled to share in the proceeds of the Settlement described herein; (b) bound by any judgment entered in the Litigation; and (c) precluded by the Settlement from otherwise prosecuting an individual claim against Defendants, if timely, based on the matters complained of in the Litigation. REMAINING IN THE SETTLEMENT CLASS 15. What am I giving up if I stay in the Settlement Class? If you do not exclude yourself from the Settlement Class, you will have given up your right to sue the Defendants on your own for the claims alleged and settled in this case (see Questions 4 and 8) and you will be bound by the Settlement and all subsequent proceedings, orders and judgments in the lawsuit. The Settlement Agreement describes the released claims in detail, so read it carefully. If you have any questions, you may call the toll-free number and speak to the Settlement Administrator. You may also consult your own lawyer at your own expense. The Settlement Agreement is available at 6

7 16. Do I have a lawyer representing me? THE LAWYERS REPRESENTING YOU The Court has appointed Berton N. Ring, Esquire and Stuart M. Clarke, Esquire, Berton N. Ring, P.C., 123 West Madison Street, Suite 1500, Chicago, Illinois 60602, to represent you as Class Counsel for the Settlement Class. You do not have to pay Class Counsel separately. The attorneys will seek compensation by asking the Court for an award from the Settlement Funds. 17. How will the lawyers be paid? Class Counsel will ask the Court for $64,000 in full settlement of all claims in the Litigation for an award of attorney s fees, costs, expenses, and any other sum to which Class Counsel may claim entitlement in the Litigation. If you want to be represented by your own lawyer, and have that lawyer appear in court for you in this case, you may hire one at your own expense. Any award of attorneys fees, litigation expenses and awards that the Court orders, plus the costs to administer the Settlement, will come out of the Settlement Funds and is subject to Court approval. OBJECTING TO OR COMMENTING ON THE SETTLEMENT, PLAN OF DISTRIBUTION, ATTORNEYS FEES AND LITIGATION EXPENSES, AND AWARDS TO CLASS REPRESENTATIVES 18. How do I object or comment on the Settlement? You can ask the Court to deny approval by filing an objection to the Settlement Agreement. If the Court denies approval, no settlement payments will be sent out and the lawsuit will continue. You may object to the Settlement Agreement in writing. Written objections should include the following information: Your full name, current mailing address, telephone number, and if you are being assisted by a lawyer, the lawyer s name, address and telephone number; The case name and number of the Litigation (Calhoun, et al. v. Crossroads Hospitality, Inc., et al., Case No CH-08833); A statement establishing your membership in the Settlement Class; A brief explanation of your reasons for objecting; and Your signature. An objection must be submitted to the Court either by mailing it to the Clerk at the address below, or by filing it in person at the Courthouse. To be valid, objections must be filed with the Court or postmarked on or before JUNE 1, 2017: COURT Clerk of The Court Chancery Division Circuit Court of Cook County 50 West Washington Street, Room 802 Chicago, IL

8 Copies of the objection must be mailed, postmarked on or before JUNE 1, 2017, to counsel to the parties and to the Class Administrator as follows: Plaintiffs Counsel Defendants Counsel Class Administrator Berton N. Ring Stuart M. Clarke Berton N. Ring, P.C. 123 West Madison St, # 1500 Chicago, IL James L. Glass Law Offices of James Glass 36 W. Randolph, #503 Chicago, IL Crossroads Hotel Objections c/o The Notice Company P.O. Box 455 Hingham, MA THE FAIRNESS HEARING 19. When and where will the Court consider the Settlement, the plan of distribution, request for attorneys fees and litigation expenses, and awards to Class Representatives? The Settlement Hearing will be held on JULY 20, 2017 at 10:00 a.m., before the Honorable Celia G. Gamrath, Illinois Circuit Court Judge, at the Circuit Court of Cook County in the Chancery Division, 50 West Washington Street, Room 2508, Chicago, IL The Court may adjourn the Settlement Hearing from time to time and without further notice to the Class, so you should check the website for current information. The purpose of the Settlement Hearing will be to determine: (1) whether the proposed settlement, as set forth in the Settlement Agreement, should be approved as fair, reasonable, and adequate to the Members of the Settlement Class; (2) whether the proposed plan to distribute the Settlement Funds is fair, reasonable, and adequate; (3) whether the application by plaintiff s counsel for an award of attorneys fees and expenses and by plaintiffs for incentive fees should be approved; and, if so, in what amounts; and (4) whether the Judgment, in the form set forth in the Settlement Agreement, should be entered. 20. Do I have to come to the hearing? No. Class Counsel will answer any questions the Court may have. But you are welcome to come at your own expense. If you file an objection or comment, you don t have to come to Court to talk about it. As long as you filed your written objection on time, your objection will be presented to the Court for its consideration. You may also pay another lawyer to attend on your behalf, but it s not required. 21. May I speak at the hearing? You may ask the Court for permission to speak at the Fairness Hearing. To do so, you must file a Notice of Intent to Appear in Calhoun, et al. v. Crossroads Hospitality, Inc., et al., Case No CH Be sure to include your name, address, telephone number and your signature. Your Notice of Intent to Appear must be submitted to the Court either by mailing it to the Clerk at the address in Question 18, or by filing it in person at the Courthouse no later than JUNE 1, You cannot speak at the hearing if you excluded yourself from the Settlement Class. 22. Where can I get more information? GET MORE INFORMATION This notice summarizes the Settlement. For the precise terms and conditions of the Settlement, please see the Settlement Agreement available at ALL INQUIRIES CONCERNING THIS NOTICE SHOULD BE MADE TO THE SETTLEMENT ADMINISTRATOR OR TO PLAINTIFF S COUNSEL. PLEASE DO NOT TELEPHONE THE COURT OR THE COURT CLERK S OFFICE. 8