UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

Transcription

1 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK X CEASAR DAHINGO, ISMAEL DOMINGONO, On behalf of Themselves and All Others Similarly Situated, vs. Plaintiffs, ROYAL CARIBBEAN CRUISES, LTD., et al Defendants X TO: 99 Civ (KMW) NOTICE OF PENDENCY AND PROPOSED SETTLEMENT OF CLASS ACTION THOSE PERSONS EMPLOYED: (1) ON ROYAL CARIBBEAN BRAND VESSELS WHO ARE COVERED BY GROUPS B, C, OR D IN THE COLLECTIVE BARGAINING AGREEMENTS FOR CATERING (HOTEL) EMPLOYEES BETWEEN ROYAL CARIBBEAN CRUISES LTD. AND THE NORWEGIAN SEAMEN'S UNION, AT ANY TIME DURING THE PERIOD FROM DECEMBER 1, 1996 TO AUGUST 31, 2002, AND (2) ON CELEBRITY BRAND VESSELS WHO ARE COVERED BY GROUPS B, C, OR D IN THE COLLECTIVE BARGAINING AGREEMENTS FOR CATERING (HOTEL) EMPLOYEES BETWEEN CELEBRITY CRUISES INC. AND FEDERAZIONE ITALIANAN TRASPORTI CISL ITF FOREIGN FLAG DEPARTMENT, ITALY, AT ANY TIME FROM SEPTEMBER 1, 1999 TO AUGUST 31, 2002, EXCEPT FOR THOSE PERSONS WHO HAVE BROUGHT THEIR CLAIMS IN Brown et al. v. Royal Caribbean Cruises, Ltd., et al., 99 Civ (KMW). Please read this Notice carefully. Your rights will be affected by the proceedings in this action. If you are a Class Member (as defined below), you may be entitled to receive money from the Settlement Fund. CLAIMS DEADLINE: Anyone making a claim as a Class Member must deliver his/her claim to the Claims Administrator so that it is received by the Claims Administrator (as defined below) on or before March 27, The address of the Claims Administrator is: Gilardi & Co. LLC, Attn: Royal Caribbean Litigation, P.O. Box 8060, San Rafael, California EXCLUSION DEADLINE: Anyone wishing to be excluded from the proposed Settlement must serve his/her request for exclusion on Plaintiff s Counsel (defined below) and Royal Caribbean s Counsel (defined below) by no later than January 28, I. THE PURPOSE OF THIS NOTICE IS TO INFORM YOU OF: A proposed class action settlement in this lawsuit (the "Settlement"). Under the Settlement, you may be entitled to receive money and, unless you request that you be excluded from the Settlement, you will give up rights that you may have with regard to the claims brought in this lawsuit. The deadlines for you to seek benefits or to exclude yourself or "opt-out" from the Settlement. If you do not opt-out on time, you will be bound by the Settlement and other orders of this Court. Who qualifies as "Class Members" (defined below) so as to be affected by the Court's Final Judgment (defined below). The terms of the proposed Settlement, including the payment of money to eligible Class Members. The hearing to consider approval of the Settlement (the "Settlement Hearing") and of your right, among other things, to participate in the Settlement Hearing to be held before the Court at the United States Courthouse, 500 Pearl Street, Courtroom 15B, New York, NY on February 28, 2003 at 10:00 a.m. II. THE ALLEGATIONS MADE IN THE LAWSUIT The Class Plaintiff in the lawsuit referenced above has alleged injury and damage to himself and the Class Members (defined below) based upon allegations that Royal Caribbean (defined below) failed to pay overtime wages to employees working in certain departments on Royal Caribbean ships. The claims made by the Class Plaintiff include claims for breach of the collective bargaining agreements, and for wages and "penalty wages" under federal statutes. Through the lawsuit, the Class Plaintiff has sought, among other things, compensatory damages in the amount of the allegedly unpaid overtime wages, attorneys' fees and costs, penalty wages, and injunctive relief. The proposed Settlement specifically addresses claims alleged by the Class Members against Royal Caribbean. The Settlement is not an admission of liability or wrongdoing by Royal Caribbean, and should not be construed as such. III. ROYAL CARIBBEAN'S DENIAL OF WRONGDOING AND LIABILITY Royal Caribbean has denied, and continues to deny, each and every claim and contention alleged by the Class Plaintiff in the lawsuit. Royal Caribbean expressly has denied, and continues to deny, all charges of wrongdoing or liability against it arising out of

2 any of the conduct, statements, acts, or omissions alleged, or that could have been alleged in the lawsuit. Royal Caribbean believes that the claims asserted in the lawsuit do not have merit and that the evidence developed to date does not support the claims asserted. Nonetheless, Royal Caribbean has concluded that the continuation of the lawsuit would be protracted and expensive, and that it is desirable that the lawsuit be fully and finally settled in the manner and upon the terms set forth in the proposed Settlement in order to limit further expense, inconvenience, and distraction, to dispose of burdensome and protracted litigation, and to permit the operation of Royal Caribbean's business without further expensive litigation and the diversion of Royal Caribbean's executive personnel with respect to matters at issue in the lawsuit. Thus, although Royal Caribbean continues to deny any and all wrongdoing or liability, Royal Caribbean has determined that it is desirable and beneficial that the lawsuit be settled in the manner and upon the terms set forth in the proposed Settlement. IV. WHO IS A CLASS MEMBER A "Class Member" is any person employed: (1) on Royal Caribbean brand vessels who is covered by Groups B, C, or D in the collective bargaining agreements for Catering (Hotel) employees between Royal Caribbean Cruises Ltd. and the Norwegian Seamen's Union, at any time during the period from December 1, 1996 to August 31, 2002; and (2) on Celebrity brand vessels who is covered by Groups B, C, or D in the collective bargaining agreements for Catering (Hotel) employees between Celebrity Cruises Inc. and Federazione Italianan Trasporti CISL ITF Foreign Flag Department, Italy, at any time during the period from September 1, 1999 to August 31, 2002, except for those persons who have brought their claims in Brown et al. v. Royal Caribbean Cruises, Ltd., et al., 99 Civ (KMW). If you fit within this definition, then you are covered by this Settlement unless you file an exclusion notice. However, the fact that you have received this Notice does not, alone, mean that you are eligible to receive money under the proposed Settlement. A. The Settlement V. TERMS OF THE SETTLEMENT Subject to the Final Approval (defined below) of the Settlement, Royal Caribbean will create the Settlement Fund (defined below), which will be deposited with the Escrow Agent (defined below) to be used in connection with the Settlement. Subject to the approval of the Court, the Settlement Fund will be used to pay (1) expenses including, but not limited to, Notice and Administration Costs (defined below) (2) an incentive payment of $3,000 to the Class Plaintiff; and (3) attorneys' fees and expenses awarded by the Court to Plaintiff's Counsel. Class Members who meet eligibility requirements and who submit a valid and timely Proof of Claim and Release form will be paid individual monetary awards from the Net Settlement Fund. This payment will constitute payment in full for any and all claims of any kind that any Class Member may have against Royal Caribbean that were or could have been asserted in the lawsuit or any other lawsuit relating to or arising from alleged failures of Royal Caribbean to pay overtime wages to employees working in certain departments on Royal Caribbean's ships (see the definition of "Released Claims" provided below). Class Members who file timely and valid Proof of Claim and Release forms may obtain monies from the Settlement Fund as follows: Those persons employed on Royal Caribbean brand vessels who worked during the period December 1, 1996 through December 31, 1999, who worked in tipping positions, will each be entitled to $40 per month worked during that period, payments for partial months to be prorated. Those persons employed on Royal Caribbean brand vessels who worked during the period January 1, 2000 through August 31, 2002, who worked in tipping positions, will each be entitled to $15 per month worked during that period, payments for partial months to be prorated. Those persons employed on Royal Caribbean brand vessels who worked during the period December 1, 1996 through December 31, 1999, who worked in non-tipping positions, will each be entitled to $50 per month worked during that period, payments for partial months to be pro-rated. Those persons employed on Royal Caribbean brand vessels who worked during the period January 1, 2000 through August 31, 2002, who worked in non-tipping positions, will each be entitled to $20 per month worked during that period, payments for partial months to be pro-rated. Those persons employed on Celebrity brand vessels who worked during the period September 1, 1999 through December 31, 1999, who worked in tipping positions, will each be entitled to $40 per month worked during that period, payments for partial months to be pro-rated. Those persons employed on Celebrity brand vessels who worked during the period January 1, 2000 through August 31, 2002, who worked in tipping positions, will each be entitled to $15 per month worked during that period, payments for partial months to be pro-rated. Those persons employed on Celebrity brand vessels who worked during the period September 1, 1999 through December 31, 1999, who worked in non-tipping positions, will each be entitled to $50 per month worked during that period, payments for partial months to be prorated. Those persons employed on Celebrity brand vessels who worked during the period January 1, 2000 through August 31, 2002, who worked in non-tipping positions, will each be entitled to $20 per month worked during that period, payments for partial months to be prorated. The Claims Administrator shall authorize payment of all approved claims as soon as it makes a final determination of the amounts to be paid and the persons to whom payments are to be made. If the sum of the total amount of all approved claims does not exceed the Net Settlement Fund, the Claims Administrator shall authorize payment of all such claims. If the sum of the total amount of all approved claims exceeds the Net Settlement Fund, such claims shall be reduced on a pro rata basis until the Net Settlement Fund is sufficient to pay all such claims, after which the Claims Administrator shall authorize payment of all such claims. Under no circumstances shall Royal Caribbean be required to pay anything in addition to the Net Settlement Fund to satisfy claims of Class Members or be required to pay anything in addition to the Settlement Fund to satisfy any obligation under this Agreement or the Final Judgment. Upon receipt of authorization from the Claims 2

3 Administrator, the Escrow Agent shall make the authorized payments. If the sum of all approved claims paid is less than the Net Settlement Fund, all excess monies will be returned to Royal Caribbean by the Escrow Agent upon demand by Royal Caribbean after all approved claims have been paid. B. Release of Claims against Royal Caribbean In connection with the Settlement and the entry of a final judgment by the Court in this litigation, all Class Members who do not exclude themselves or opt-out will be bound by the Final Judgment to be entered in the lawsuit and will release Royal Caribbean from any and all claims of any kind that any Class Member may have against Royal Caribbean that were or could have been asserted in the lawsuit or any other lawsuit relating to or arising from alleged failures of Royal Caribbean to pay overtime wages to employees working in certain departments on Royal Caribbean's ships (see the definition of "Released Claims" provided below). The Class Members who do not timely request exclusion will not have any opportunity or ability to obtain any relief or damages for the Released Claims from Royal Caribbean other than through a valid and timely Proof of Claim and Release form filed as part of this Settlement. The specific release language employed by the Settlement is included below in the "Released Claims" definition. C. Settlement Approval The Settlement will not be final until Final Approval (defined below). You may independently object (as described below) to the Settlement. You cannot, however, object to the Settlement if you have elected to exclude yourself or "opt-out" of the Class (as described below). D. Plaintiff's Counsel's Attorneys' Fees and Costs, Class Representative Award, and Administrative Costs Subject to final approval by the Court, Plaintiff's Counsel will be paid reasonable attorneys' fees and out-of-pocket expenses arising from their representation of the Class Members in this case from the Settlement Fund. Accordingly, Plaintiff's Counsel will formally apply to the Court for an award of attorneys' fees not to exceed 33-1/3% of the Settlement Fund and reimbursement of out-ofpocket expenses. The Court may formally rule upon Plaintiff's Counsel's request at the Settlement Hearing. Subject to final approval by the Court at the Settlement Hearing, the Named Plaintiff has also requested an incentive award of $3,000 to be paid from the Settlement Fund. Finally, the costs incurred in connection with providing this Notice and required to administer the Settlement, including processing and payment of claims, will be paid from the Settlement Fund. Any Class Member may be represented by counsel of his or her own choice, but all fees and expenses of such counsel shall be paid by the individual Class Member. VI. MAKING A CLAIM FOR PAYMENT You may make a claim for payment under the proposed Settlement by properly executing and filing a valid and timely Proof of Claim and Release form. A blank Proof of Claim and Release form is attached to this Notice for you to use. VII. EXCLUDING YOURSELF OR OPTING-OUT OF THE SETTLEMENT If you do NOT want to be a Class Member or participate in the proposed Settlement, then you must exclude yourself from the Class. To exclude yourself from the Class (or "opt-out"), you must indicate your desire to opt-out by a personally signed written request mailed to Plaintiff s Counsel and Royal Caribbean s Counsel at the addresses shown below. Your request to opt-out of the Settlement must state: (1) your name and address; (2) the positions you held aboard Royal Caribbean or Celebrity vessels and the dates you held such positions; (3) a clear statement that you wish to be excluded from the Settlement and the Class; and (4) your signature. YOUR EXCLUSION REQUEST MUST BE POST-MARKED ON OR BEFORE JANUARY 28, Unsigned requests will not be accepted and no one else can sign your opt-out request for you. The addresses for Counsel for the Parties are listed below in Section IX. If you submit a valid and timely request for exclusion, you will have no rights under the Settlement, will not share in the distribution of the Net Settlement Fund, and will not be bound by any further orders or judgments entered for or against the Class. You should be aware that if you opt-out, Royal Caribbean is free to assert any defenses that may bar your recovery. VIII. THE CLASS MEMBERS' REPRESENTATIVES The Court has designated Ceasar Dahingo as the "Class Plaintiff." The Court has designated Paul T. Hofmann, Aurora Cassirer and the law firms of Cappiello Hofmann & Katz and Jenkens & Gilchrist Parker Chapin LLP as "Plaintiff's Counsel." Plaintiff's Counsel are the attorneys who represent the interest of Class Members as a whole. IX. THE SETTLEMENT HEARING AND ITS PURPOSE The Court will conduct a hearing in Courtroom 15B in the United States Courthouse, 500 Pearl Street, New York, NY on February 28, 2003 at 10:00 a.m., to determine whether the proposed Settlement as set forth in the Settlement Agreement should be approved as fair, reasonable and adequate, whether the proposed Plan of Distribution of the Net Settlement Fund should be approved, whether the application of Plaintiff's Counsel for an award of attorneys' fees and expenses and the award of an incentive payment to the Class Plaintiff should be approved, and whether the Final Judgment should be entered. The Court may, without further notice to Class Members, continue or adjourn the Settlement Hearing. 3

4 As a Class Member, you have the right to object to the terms of the Settlement, including the payments to Class Members, the award of attorneys' fees and expenses to Plaintiff's Counsel, and the award of an incentive payment to the Class Plaintiff. No one may be heard at the Settlement Hearing in favor or in opposition to class certification, the proposed settlement, Plaintiff's Counsel's proposed attorneys' fees and costs, or the award of an incentive payment to the Class Plaintiff unless, on or before February 7, 2003, such person files with the Clerk of the United States District Court for the Southern District of New York, 500 Pearl Street, New York, New York 10007, and serves upon counsel to all parties listed below, notice in writing of an intention to appear at the hearing, together with copies of all papers, briefs, and exhibits proposed to be submitted to the Court at the Settlement Hearing and a list of all witnesses (including any experts) proposed to be called to testify at the Settlement Hearing: Counsel For Plaintiff: Paul T. Hofmann Aurora Cassirer Cappiello Hofmann & Katz -and- Jenkens & Gilchrist Parker Chapin LLP 360 West 31 st St. The Chrysler Building New York, NY Lexington Ave. Facsimile: New York, NY Facsimile: Counsel For Royal Caribbean: Sanford L. Bohrer Holland & Knight LLP P.O. Box Miami, FL Facsimile: Any person who fails to comply with the requirements provided above shall waive and forfeit any and all rights he or she may have to appear separately and/or to object, and shall be bound by all the terms of the Settlement Agreement and by all proceedings, orders, and judgments in the lawsuit. X. DEFINITIONS The following terms shall have the following meanings for all purposes relating to this Notice and the settlement of the lawsuit referred to in the caption on the first page: 1.01 Claims Administrator. "Claims Administrator" means Gilardi & Co., LLC, P.O. Box 8060, San Rafael, California Class. "Class" means (1) those persons employed on Royal Caribbean brand vessels who are covered by Groups B, C, or D in the collective bargaining agreements for Catering (Hotel) employees between Royal Caribbean Cruises Ltd and the Norwegian Seamen's Union, at any time during the period from December 1, 1996 through August 31, 2002, and (2) those persons employed on Celebrity brand vessels who are covered by Groups B, C, or D in the collective bargaining agreements for Catering (Hotel) employees between Celebrity Cruises Inc. and Federazione Italianan Trasporti CISL ITF Foreign Flag Department, at any time during the period from September 1, 1999 to August 31, 2002, except for those persons who have brought their claims in Brown et al. v. Royal Caribbean Cruises, Ltd., et al., 99 Civ (KMW) Class Member. "Class Member" means a member of the Class as defined in Class Period. "Class Period" means, in context, either or both of the periods referred to in Class Plaintiff. "Class Plaintiff" means Ceasar Dahingo Notice. "Notice refers to this Notice Escrow Agent. "Escrow Agent" means Amalgamated Bank of New York Final Judgment. Final Judgment refers to the final judgment to be entered by the district court, which gives final approval to the Settlement described in this Notice, and provides for the performance and enforcement of the terms of the Settlement Final Approval. Final Approval means that all of the following have occurred: (a) The district court has entered the Final Judgment, as defined above; and (b) The Final Judgment has become Final. Final means: (i) If no motion for rehearing or reconsideration is filed and if no appellate review is sought, after the expiration of time for seeking such review; (ii) If rehearing, reconsideration or appellate review is sought, after any and all avenues of rehearing, reconsideration and appellate review have been exhausted and no further rehearing, reconsideration or appellate review is permitted, or the time for seeking such review has expired and the Final Judgment has not been modified, amended or reversed in any way. (c) An appeal or other appellate proceedings relating solely to any application by Plaintiff's Counsel for an award of attorneys' fees or expenses shall have no affect on whether there has been Final Approval. 4

5 1.10 Net Settlement Fund. "Net Settlement Fund" means the Settlement Fund, as defined below, less expenses, including but not limited to the Notice and Administration Costs, as defined below, an incentive payment to the Class Plaintiff, and attorneys' fees and costs, to the extent allowed by the Court Notice and Administration Costs. Notice and Administration Costs mean the reasonable costs and expenses incurred in connection with providing notice to the Class and in administering the Settlement Fund The Parties. The Parties shall mean and refer to Royal Caribbean, the Class Plaintiff, and includes Royal Caribbean s Counsel and Plaintiff s Counsel Plaintiff's Counsel. Plaintiff's Counsel refers to Cappiello, Hofmann & Katz and Jenkens & Gilchrist Parker Chapin LLP Proof of Claim and Release. "Proof of Claim and Release" means the documents with that name, copies of which are attached to this Notice Released Claims. "Released Claims" means any and all claims of any kind that have been or could have been asserted in the lawsuit described in this Notice relating or arising from the factual circumstances and allegations set forth in the First Amended Complaint filed in such lawsuit, or which could have been asserted in the lawsuit or other litigation relating to any alleged failure to make payment of overtime wages to any Class Member. Released Claims do not include any claim for breach of this Agreement or any claim for personal injury and/or maintenance and cure by any Class Member Royal Caribbean. Royal Caribbean shall mean and include defendant Royal Caribbean Cruises Ltd., Celebrity Cruises Inc., Century Cruise Associates Partnership, Celebrity Catering Services Partnership, Century Cruise Services, Limited, and Mediterranean Blue Sea Holdings, Ltd., and all of their current and former parent corporations, subsidiaries, divisions, affiliated or related entities, partners, directors, officers, members, employees, agents, representatives, attorneys, trustees, heirs, administrators, executors, conservators, successorsin-interest, and assigns Released Parties. "Released Parties" shall mean each of the persons and entities referred to in Royal Caribbean's Counsel. Royal Caribbean's Counsel refers to Holland & Knight LLP, P.O. Box , Miami, Florida, Settlement Fund. "Settlement Fund" means the amount of $18.4 million Royal Caribbean has agreed to pay as the maximum amount to satisfy all of its obligations under this Agreement, as further described in this Notice. XI. OBTAINING ADDITIONAL INFORMATION This notice summarizes the provisions of the Settlement in sufficient detail that it is expected that most people will not need substantial, additional information. You may review the pleadings, records and other papers on file in this litigation, which may be inspected during regular business hours at the office of the Clerk of the United States District Court for the Southern District of New York, 500 Pearl Street, New York, New York Any inquiries should be directed, in writing, to Plaintiff s Counsel. INQUIRIES SHOULD NOT BE DIRECTED TO THE COURT. The foregoing is only a summary of the circumstances surrounding this Litigation, the claims asserted and the proposed Settlement and the matters related thereto. You may seek the advice of your own private attorney, at your own expense, if you desire. Dated: November 5, 2002 BY ORDER OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK 5