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Keywords

lawsuitsettlementplaintiffdefendantnegligencesummary judgmentfiduciarytrustantitrustdue processfiduciary dutycivil procedure
settlementplaintiffdefendantnegligencesummary judgmentfiduciarytrustcomplianceclass actionantitrustdue processfiduciary dutybreach of fiduciary dutycivil procedure

Related Cases

Zimmer Paper Products, Inc. v. Berger & Montague, P.C., 758 F.2d 86, 53 USLW 2481, 1985-1 Trade Cases P 66,531, 1 Fed.R.Serv.3d 454

Facts

Zimmer Paper Products was part of a plaintiff class in an antitrust lawsuit and claimed it did not receive adequate notice of a settlement, which resulted in its failure to file a claim. The class counsel provided notice through first-class mail and publication in the Wall Street Journal, as approved by the court. Zimmer admitted to receiving six notices in June but claimed it did not receive any of the November notices, despite evidence that other class members did respond to the settlement.

Zimmer admits to receiving six copies of the June 1 notice. The second notice, mailed November 10, 1981, and also published in the Wall Street Journal, informed class members of proposed additional settlements and, most importantly, of a plan for distribution of the settlement fund.

Issue

Did class counsel breach their fiduciary duty or act negligently in providing notice of the settlement to class members?

Did class counsel breach their fiduciary duty or act negligently in providing notice of the settlement to class members?

Rule

The court determined that first-class mail and publication in a newspaper are generally sufficient to satisfy the notice requirements of Federal Rule of Civil Procedure 23 and due process.

The court determined that first-class mail and publication in a newspaper are generally sufficient to satisfy the notice requirements of Federal Rule of Civil Procedure 23 and due process.

Analysis

The court found that class counsel followed the approved notice procedures and that Zimmer's claims of negligence were unsupported. The court emphasized that the notice methods used were customary and had been previously validated in similar cases. The lack of evidence showing that the notice was improperly executed led to the conclusion that no breach of duty occurred.

The court found that class counsel followed the approved notice procedures and that Zimmer's claims of negligence were unsupported.

Conclusion

The court affirmed the district court's summary judgment in favor of the defendants, concluding that class counsel did not breach their fiduciary duties and that Zimmer failed to establish negligence.

The court affirmed the district court's summary judgment in favor of the defendants, concluding that class counsel did not breach their fiduciary duties and that Zimmer failed to establish negligence.

Who won?

Class counsel prevailed in the case because they adhered to the court-approved notice procedures, which were deemed sufficient under the law.

Defendants were class counsel in an antitrust class action. The district court in this action determined that compliance with these approved notice procedures did not constitute a breach of fiduciary duty and further concluded that plaintiff had made no showing of negligence in class counsel's execution of the notice.

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