SUPERIOR COURT OF NEW JERSEY FOR GLOUCESTER COUNTY

Transcription

1 SUPERIOR COURT OF NEW JERSEY FOR GLOUCESTER COUNTY The settlement of a class action lawsuit may affect your rights if you are a purchaser of a Home in one of the following developments in the State of New Jersey between June 27, 2001 and December 23, 2014: Briar Glen, Chestnut Green, Countryside/Greenbriar, Equestrian Estates, Georgetown Estates, Mapleton, Sawyer s Creek, Springdale Crossing, Stockton Run, Sutton Woods, Woodfield Estates, Woodfield II, Woodhollow, Woods Edge, Lakeside at Creekview, Woods at Creekview, Monticello or Saratoga. If you would like to determine if the home you purchased is included in the Class, please visit for a list of the addresses of all of the Homes included in the class action. The case is called D Andrea v. Hovnanian Enterprise, Inc. et al., Case No: GLO L (N.J.Super.). A Court authorized this Notice. This is not a solicitation from a lawyer. This Notice advises you of a settlement (the Settlement ) of a lawsuit against Hovnanian Enterprise, Inc. and K. Hovnanian Venture I, LLC (collectively Defendants ). In the lawsuit, Plaintiffs, Mike and Tracy D Andrea (collectively, Plaintiffs or the D Andreas ), claimed that Defendants violated New Jersey law by improperly constructing heating ventilation/air conditioning systems ( HVAC systems ) in certain residential Homes in New Jersey. Defendants deny all of Plaintiffs claims. Defendants deny that there are any defects with the Homes covered by the class ( Class ) and deny that they constructed the Homes in violation of applicable codes. There has been no final decision regarding the outcome of Plaintiffs claims. By issuing this Notice, the Court is not expressing an opinion about the eventual outcome of this action but, rather, is assisting in effectuating the parties proposed Settlement of this class action. You should read this entire Notice carefully because your legal rights may be affected whether you act or not. Your rights and options, and the deadline for you to object if you are opposed to the Settlement, are explained in this Notice.

2 WHAT THIS NOTICE CONTAINS BASIC INFORMATION Why did I get this Notice? What is this lawsuit about? What is a class action lawsuit? Why is there a Settlement? How do I get more information about the Settlement? Who will administer the Settlement?... 2 THE SETTLEMENT BENEFITS WHAT YOU MAY GET What does the Settlement provide? How will I benefit from the Settlement? How do I submit a claim for compensation? What are the Plaintiffs receiving from the Settlement?... 3 THE SETTLEMENT BENEFITS WHAT YOU GIVE UP What do I give up by participating in the Settlement?... 3 THE LAWYERS REPRESENTING YOU Do I have a lawyer in this case? How will the lawyers (Class Counsel) be paid?... 3 EXCLUSION FROM THE SETTLEMENT Can I exclude myself from the Class? How do I exclude myself from the Class?... 3 OBJECTING TO THE SETTLEMENT What does it mean to object? What is the procedure for objecting to the Settlement?... 4 THE COURT S FAIRNESS HEARING When/where will the Court decide whether to approve the Settlement? Do I have to attend the Fairness Hearing? May I speak at the Fairness Hearing?... 4 IF YOU DO NOTHING What happens if I do nothing at all? i-

3 1. Why did I get this Notice? BASIC INFORMATION You are receiving this Notice because you may be affected by the proposed settlement of a class action lawsuit and you have a right to know about the proposed settlement of this lawsuit in which you may be a member of the Class before the Court decides whether to approve the Settlement. Everyone who meets the following description is in the Class: All persons or entities who, from June 27, 2001 through December 23, 2014, purchased a Home identified by address in Exhibit 2 to the Settlement Agreement, which can be accessed on the Settlement website: If you purchased one of the Homes on this list between June 27, 2001 and December 23, 2014, you are a member of the Class. This Notice summarizes the lawsuit, the Settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them. The lawsuit is pending in the Superior Court of New Jersey for Gloucester County. It is known as D Andrea v. Hovnanian Enterprise, Inc., et al., Case No: GLO L (N.J.Super.) and is brought against Defendants (defined above). 2. What is this lawsuit about? In 2006, the D Andreas filed a lawsuit against the Defendants alleging that the Defendants improperly constructed HVAC systems in violation of applicable New Jersey building codes in certain residential homes in New Jersey. Plaintiffs have asserted claims for violations of the New Jersey Consumer Fraud Act, N.J.S.A. 56:8-1, et seq., and common law claims for breach of contract. Plaintiffs sought certification of this matter as a class action, which the Court granted. Defendants deny all of Plaintiffs claims. Defendants deny that there are any defects with the Homes or that they constructed the Homes in violation of applicable codes. There has been no decision regarding the outcome of Plaintiffs claims. By establishing the Class and issuing this Notice, the Court is not expressing an opinion about the eventual outcome of this action. 3. What is a class action lawsuit? In a class action lawsuit, one or more people called class representatives sue on their own behalf and on behalf of other people who have similar claims. One court resolves all the issues for all class members in a single lawsuit. The D Andreas are the Class representatives in this lawsuit. 4. Why is there a Settlement? The Parties have agreed to the Settlement after extensive negotiations, including two days of mediation with a respected mediator in New Jersey, The Honorable Joel B. Rosen (ret). By agreeing to the Settlement, the Parties avoid the costs and risks of further litigation, and Plaintiffs and the other members of the Class will receive compensation. Class Counsel have conducted an extensive review of the evidence in the case and the potential risks and benefits of continued litigation. Plaintiffs believe that the Settlement is in the best interest of the Class. The Court has not made any finding that Defendants have done anything wrong or violated any law or regulation. Based upon the scope of the work that Plaintiffs believe would be necessary to address the alleged defect in your Home, it is anticipated that you may receive approximately $13,000 if the Settlement is approved in all respects. Class Counsel have arranged with a licensed contractor, who has agreed to perform all necessary work for no more than the amount distributed with respect to your Home, so long as you directly contract to have such work performed on or before December 31, For information regarding this licensed contractor, please see the Settlement website: -1-

4 5. How do I get more information about the Settlement? This Notice is only a summary of the lawsuit and the proposed Settlement. It is not a complete description of the lawsuit or the proposed Settlement. You may inspect the pleadings and other papers (including the Settlement Agreement) that have been filed in this lawsuit at the office of the Clerk of the Superior Court of New Jersey for Gloucester County, which is located at 1 North Broad Street, Woodbury, NJ You can also review the Settlement Agreement and related documents at If you have questions about this Notice or the proposed Settlement, you may contact the Settlement Administrator (see answer to question 6 for contact information). Do not contact the Court or Defendants for information about the Settlement. The Settlement Administrator can answer any questions you may have about the proposed Settlement. 6. Who will administer the Settlement? Pursuant to the agreement of the parties, the Settlement Administrator, Strategic Claims Services, will administer the Settlement, including the processing of the Instruction and Claim Form ( Instruction Form ) that Class Members need to fill out and send in to receive any money. You may contact Strategic Claims Services by: (a) sending a letter to Strategic Claims Services, Attn: D Andrea Settlement, 600 North Jackson Street - Suite 3, Media, PA 19063; (b) telephoning (866) ; or (c) sending an to info@strategicclaims.net. THE SETTLEMENT BENEFITS WHAT YOU MAY GET 7. What does the Settlement provide? Defendants have agreed to pay a total of $21,000,000, inclusive of all claims for attorneys fees and costs, as well as any Case Contribution Fees and the costs of administering the Settlement. The amount that will be available for distribution to Class Members (known as the Distributable Settlement Amount ) will be $21,000,000 minus the amounts used for other Settlement purposes (Case Contribution Fee, Court-approved Attorneys Fees to Class Counsel, and Administration Costs). 8. How will I benefit from the Settlement? You may be entitled to receive a portion of the Distributable Settlement Amount. The amount paid to each Class Member will be determined by a Plan of Allocation. As explained below, all you have to do is submit the enclosed Instruction Form with appropriate documentation. 9. How do I submit a claim for compensation? To receive money, you must submit an appropriately completed Instruction Form that gives the Settlement Administrator information about you that will allow the Settlement Administrator to confirm you are entitled to payment as a Member of the Class, and tells the Settlement Administrator how the money should be distributed. A copy of the Instruction Form is enclosed. If you want to receive any money from the Settlement, you must submit the Instruction Form, by U.S. mail or overnight delivery, postmarked no later than April 21, The Instruction Form should be mailed to the address shown on the Form. An Instruction Form will be deemed submitted when it is actually received by the Settlement Administrator at the address listed in the Instruction Form. Even if you do not submit an Instruction Form, you will be bound by the Settlement unless you request to be excluded. (See answers to questions 11, 14 and 15 below.) -2-

5 10. What are the Plaintiffs receiving from the Settlement? In this case there are two Class representatives, Mr. and Mrs. D Andrea. Class Counsel intends to ask the Court to award each of them a Case Contribution Fee of $20,000 in recognition of all of their work and effort expended on behalf of the Class. THE SETTLEMENT BENEFITS WHAT YOU GIVE UP 11. What do I give up by participating in the Settlement? Unless you request to be excluded from the Class, each member of the Class gives Defendants a release. A release means you give up the right to sue the Defendants or receive any benefits from any other lawsuit against the Defendants if the lawsuit asserts claims or relates in any way to the Homes or Class Members purchase of the Homes. For additional details about the scope of the release, consult the Settlement Agreement or contact Class Counsel. (See answer to questions 5 and 12 for details.) 12. Do I have a lawyer in this case? THE LAWYERS REPRESENTING YOU Yes. The Court has appointed two law firms to represent you and other Class Members: Shepherd, Finkelman, Miller & Shah, LLP ( SFMS ) and Trimble & Armano ( Trimble ). These lawyers are called Class Counsel. You will not be charged for the work of these lawyers during the past eight years. If you want to be represented by a different lawyer in this case, you may hire one at your own expense. 13. How will the lawyers (Class Counsel) be paid? Class Counsel will ask the Court for an award of reasonable attorneys fees of up to one third of the Settlement Fund plus expenses, based upon the value of the Settlement and the time they have devoted to this engagement. 14. Can I exclude myself from the Class? EXCLUSION FROM THE SETTLEMENT Yes. You can exclude yourself from the Class and the Settlement. By excluding yourself, you give up your right to receive money from the Settlement. By excluding yourself, you preserve your right to bring your own lawsuit against the Defendants. 15. How do I exclude myself from the Class? To exclude yourself from the Class, you must submit a written Request for Exclusion. The form Request for Exclusion is available on the website The form Request for Exclusion can also be provided by the Settlement Administrator or Class Counsel. Completed Requests for Exclusion must be sent separately to the Settlement Administrator and Class Counsel by U.S. mail, overnight delivery service or hand delivery at the addresses listed below, and must be received by no later than February 6, Settlement Administrator: Class Counsel: Strategic Claims Services Shepherd, Finkelman, Miller & Shah, LLP Attn: D Andrea Settlement Attn: James C. Shah 600 North Jackson Street - Suite White Horse Pike Media, PA Collingswood, NJ

6 16. What does it mean to object? OBJECTING TO THE SETTLEMENT Objecting is simply telling the Court that you do not like something about the Settlement. Objecting will not have any bearing on your right to receive the benefits of the Settlement if it is approved by the Court. 17. What is the procedure for objecting to the Settlement? Any Class Member who wants to object to the Settlement must file an objection in writing. Your objection must be hand delivered or sent by first class mail to Class Counsel and the Court. Your objection must be received by Class Counsel and filed with the Court on or before February 6, 2015, and must list your name, address, and telephone number and, if applicable, the name, address, and telephone number of your attorney. Your objection must be accompanied by any supporting papers or briefs you intend to submit in support of your objection, including a statement confirming that you are a Class Member and that you are authorized to submit the objection. Objections must be filed with the Court and mailed to Class Counsel at the addresses listed below. You may also attend the Settlement hearing. If you intend to appear personally or through your own lawyer at the hearing, you must include a notice of intent to appear in addition to your objection and mail copies of the notice to the Court and Class Counsel. Your objection must also include (1) a statement of membership in the Class, (2) a description of the specific grounds for your objection, and (3) all papers you intend to present to the Court in opposition to the Settlement Agreement. ANY CLASS MEMBER WHO DOES NOT OBJECT IN THE MANNER DESCRIBED ABOVE SHALL BE DEEMED TO HAVE WAIVED ANY OBJECTION AND SHALL NOT HAVE ANY RIGHT TO OBJECT TO THE FAIRNESS OR ADEQUACY OF THE SETTLEMENT. The following are the addresses to which any objection must be sent. It must be timely sent and received at the addresses below: Clerk of the Court Class Counsel Superior Court of New Jersey Shepherd, Finkelman, Miller & Shah, LLP, Gloucester County Attn: James C. Shah Attn: Clerk of Court 475 White Horse Pike 1 North Broad Street Collingswood, NJ Woodbury, NJ THE COURT S FAIRNESS HEARING 18. When/where will the Court decide whether to approve the Settlement? On February 20, 2015, at 9:00 a.m. in Courtroom 200 of the Superior Court of New Jersey for Gloucester County, 1 North Broad Street, Woodbury, NJ 08096, the Court will hold a Fairness Hearing to determine whether the proposed Settlement is fair, reasonable, and adequate and whether it should be approved. The hearing may be continued from time to time by the Court without further notice. 19. Do I have to attend the Fairness Hearing? No. However, you are welcome to attend at your own expense. If you file an objection to the Settlement, you do not have to go to Court to talk about it. As long as your objection is filed by February 6, 2015, and you comply with the requirements in answer to question 17 above, the Court will consider it. You also may send your own lawyer to attend the Fairness Hearing. 20. May I speak at the Fairness Hearing? You may ask the Court for permission to speak at the hearing. Anyone wishing to appear for purposes of objecting must state in their written objection their intention to appear at the Fairness Hearing. (See answer to question 17 for details.) 21. What happens if I do nothing at all? IF YOU DO NOTHING You will be bound by the Settlement, including the release of claims against Defendants, but you will not receive any of the monetary benefits described above in answer to question 7. THIS NOTICE HAS BEEN SENT TO YOU BY ORDER OF THE SUPERIOR COURT OF NEW JERSEY -4-