PCIII REO LLC, et al. v. City of Bridgeton, et al.

Docket No: CUM-L-000584-19

The Superior Court of New Jersey, Cumberland County

Frequently Asked Questions

  1. GENERAL INFORMATION

  2. WHY AM I RECEIVING THE NOTICE?

    The purpose of the notice is to inform you of the proposed settlement in a pending class action lawsuit brought on behalf of property owners in the City of Bridgeton who paid vacant and abandoned property registration fees and fines under City of Bridgeton Ordinance No. 18-3. The class action lawsuit PCIII REO LLC, et al. v. City of Bridgeton, et al., Docket No: CUM-L-000584-19, filed in the Superior Court of New Jersey, Cumberland County, Law Division (“Lawsuit”) was brought by named plaintiffs PCIII REO LLC, PC4REO LLC, PCIREO-1 LLC, and Pro Capital, LLC (“Named Plaintiffs”). The Lawsuit alleges that the City of Bridgeton, BSTA, and others violated the civil rights of property owners who were found to be in possession of a vacant and abandoned property. The Named Plaintiffs and the Defendants in this matter have reached an agreement to settle the Lawsuit (“Settlement Agreement”), the details of which are described below.

  3. WHAT WOULD THE PROPOSED SETTLEMENT DO?

    Description of the Action and the Class: In a class action lawsuit, one or more people representing the class (here, the Named Plaintiffs) sue on behalf of other people and businesses who have similar claims. The people and businesses together are called a “Class” or “Class Members.” The person who sued - and all of the Class Members - are called the Plaintiffs. The entity and persons who the Plaintiffs sued (in this case, City of Bridgeton, Albert B. Kelly, James Curtis Edwards, William Spence, Gladys Lugardo-Hemple, Jack Surrency, Michael Zapolski, Sr., Mary Keith, Borgers, Saunders, Taylor and Associates, Thomas Borgers, Kris Taylor, Dwight Saunders, and Elmer Anderson) are called Defendants. One court (here, the Superior Court of New Jersey - Cumberland County, Law Division) resolves the issues for all Class Members, except for those who opt out of the Class. Those Class Members that do not opt out - explained further below - will be part of the “Settlement Class,” and will be bound by this Settlement Agreement.

    In September of 2019, Named Plaintiffs filed claims against the City of Bridgeton, Borgers, Saunders, Taylor and Associates (“BSTA”), and others for violating the civil rights of certain property owners in possession of vacant and abandoned properties under the New Jersey Civil Rights Act.

    Specifically, Plaintiffs allege that the terms and enforcement of Ordinance No. 18-3, relating to vacant and abandoned properties, violated Class Members' civil rights. Also, Plaintiffs allege that the City of Bridgeton's delegation of code enforcement to BSTA relating to vacant and abandoned properties violated Class Members' civil rights.

    Class Recovery of Vacant and Abandoned Property Registration Fees and Fines: Subject to Court approval, Named Plaintiffs, on behalf of themselves and the class, have agreed to settle the lawsuit in exchange for the return of a portion of the vacant and abandoned property registration fees paid by certain Class Members. The total amount to be returned is $325,000.00 and will be paid by Defendants into an escrow fund in two instalments, the first instalment in the amount of $162,500.00 in December 2022, and the second instalment in the amount of $162,500.00 in December 2023. Within thirty days of receipt of each of these instalments, Class Members will receive a pro rata payment based upon a percentage of the total amount of vacant and abandoned property registration fees that they paid under City of Bridgeton Ordinance 18-3, minus administrative costs associated with providing notice to the Class Members and distributing refunds.

    Attorneys' Fees: The class is represented by Court-appointed Plaintiffs' Counsel Kang Haggerty LLC. Plaintiffs' Counsel are entitled to attorneys' fees and costs for prosecuting this Lawsuit under a fee-shifting provision of New Jersey Civil Rights Act, N.J.S.A. 10:6, et seq. Plaintiffs' Counsel will file a motion with the Court to receive attorneys' fees in the amount of $325,000.00. This amount also represents the expenses that Plaintiffs' Counsel incurred in connection with the institution, prosecution, and resolution of this Lawsuit.

  4. WHAT ELSE DO I NEED TO KNOW ABOUT THE SETTLEMENT AGREEMENT?

    Resolution & Release of Claims: The Settlement Agreement resolves all claims brought by the Named Plaintiffs on behalf of themselves and the Class, meaning once the Settlement Agreement is approved, the Named Plaintiffs and all Class Members will be deemed to have released all claims brought and which could have been brought in connection with Bridgeton City Ordinance 18-3, including but not limited to, the following claims:

    • Any claims under the New Jersey Civil Rights Act, N.J.S.A. 10:6, et seq. regarding the City of Bridgeton's delegation of code enforcement to BSTA.
    • Any claims under the New Jersey Civil Rights Act, N.J.S.A. 10:6, et seq. regarding the fines and fees set by Bridgeton City Ordinance 18-3.

    The Settlement Agreement provides for monetary relief to be paid to Class Members who paid vacant and abandoned property registration fees under Ordinance 18-3.

    The proposed Settlement Agreement, if given final approval by the Court, will bind all members of the Settlement Class. This will bar any person who is a member of the Settlement Class from seeking different or additional relief regarding all issues resolved in the Settlement Agreement.

    Incentive Payment for Named Plaintiffs: As part of the Settlement Agreement, Named Plaintiffs will receive a total of $10,000.00 as an incentive payment for their participation in the Lawsuit. The $10,000.00 will be taken from the total award of attorneys' fees, described above.

    Fairness of Agreement: The Named Plaintiffs and their attorneys have concluded that the terms and conditions of the proposed Settlement Agreement are fair, reasonable, and in the best interest of the Class. In reaching this conclusion, the Named Plaintiffs and their attorneys have considered the benefits of the settlement, the possible outcomes if they were to continue the Lawsuit, and the expense and length of time associated with bringing the Lawsuit to trial and any possible appeals.

    (1) Maintain Class Member Status: You do not need to take any action to remain a Class Member and be part of this Settlement Agreement. If you qualify for a refund of a portion of the vacant and abandoned property registration fees that you paid, you will receive your disbursement payments automatically based upon the records maintained by the City of Bridgeton. If you qualify, you do not need to take any additional action to receive the disbursement payments.

    (2) Exclude Yourself (“Opt Out” of the Settlement Agreement): You may exclude yourself from the Settlement Agreement. If you do so, you will not receive a disbursement payment, even if you otherwise qualify. You will not release any claims you may have against the Defendants, and you will be free to pursue whatever legal rights you may have by pursuing your own lawsuit against the Defendants at your own risk and expense. To exclude yourself from the Settlement Agreement, you must mail a timely letter to the Settlement Administrator, postmarked July 27, 2022.

    Your request to be excluded from the Settlement Agreement must be personally signed by you and contain a statement that indicates your desire to be excluded from the Settlement Class in PCIII REO LLC, et al. v. City of Bridgeton, et al., Docket No: CUM-L-000584-19. The request should also include your full name, address, telephone number(s), and identify the case named PCIII REO LLC, et al. v. City of Bridgeton, et al., Docket No: CUM-L-000584-19.

    You cannot ask to be excluded by phone or this Settlement Administrator website.

    (3) File an Objection to the Proposed Settlement: If you are a Settlement Class Member (and do not exclude yourself from the Settlement Class), you can object to any part of the Settlement Agreement.

    The Court has preliminarily approved the Settlement Agreement, and has scheduled a hearing for November 10, 2022, in the Courtroom of the Honorable Benjamin D. Morgan, J.S.C. to determine whether the proposed Settlement Agreement is fair and reasonable, and should be approved on a final basis (“Final Approval Hearing”).

    You can ask the Court to deny approval by filing an objection. If the Court denies approval, the actions outlined in the notice will not occur and the Lawsuit will continue. If that is what you want to happen, you must file an objection.

    To object, you must file with the Court and serve on the parties a timely letter by July 27, 2022 that includes the following: (1) your full name and current address; (2) all arguments, citations, and evidence supporting the objection (including copies of any documents relied on); (3) a statement that you are a Settlement Class Member, and (4) a statement whether you intend to appear at the Final Approval Hearing, with or without counsel, accompanied by the signature of the objecting Settlement Class Member.

    Although you are not required to attend the Final Approval Hearing, as a Class Member, you may participate in, and be heard at, the hearing if you have filed a timely written objection that includes a statement of your intention to participate in the hearing. You may appear on your own or through an attorney. If you appear through an attorney you are responsible for paying that attorney. The Final Approval Hearing date may be changed by the Court without further notice to the entire Class. If you wish to receive electronic notice of any changes to the schedule, please file a notice of appearance with the Court and include a valid e-mail address at which you can receive notice.

    To file an objection, no later than July 27, 2022 you must (1) file your objection with the Court (using the Court's electronic filing system or in any manner in which the Court accepts filings); (2) mail a copy of your objection to the attorneys representing the Settlement Class at Kang Haggerty LLC, Attn: Class Action Bridgeton, 123 S. Broad Street, Suite 1670, Philadelphia, PA 19109; (3) mail a copy of your objections to the attorneys representing the City of Bridgeton at Marshall Dennehey, Attn: Matthew J. Behr, 15000 Midlantic Dr., Suite 200, Mount Laurel, NJ 08054; and (4) mail a copy of your objections to the attorneys representing BSTA at Hecht Partners LLP, Attn: Adam Rader, 125 Park Avenue, 25th Floor, New York, NY 10010.

    IF YOU DO NOT TIMELY SUBMIT AN OBJECTION AS DESCRIBED HEREIN, YOU WILL BE DEEMED TO HAVE WAIVED YOUR OBJECTION AND SHALL BE FORECLOSED FROM MAKING ANY OBJECTION TO THE SETTLEMENT AGREEMENT, AND WILL NOT BE ENTITLED TO SPEAK AT THE FINAL APPROVAL HEARING.

  5. HOW DO I GET MORE INFORMATION?

    The notice summarizes the proposed Settlement Agreement. You can review the actual Settlement Agreement and its precise terms and conditions, and other important filings in the Lawsuit here; or by accessing the Court docket in this case through portal.njcourts.gov, Docket No. CUM-L-000584-19; or by visiting the office of the Clerk of the Court for Cumberland County, located at 60 W Broad St, Bridgeton, NJ 08302, and open every Monday-Friday from 8:30 a.m. to 4:30 p.m., excluding Court holidays.

    Please do not telephone the Court or the Court Clerk's Office to inquire about the Settlement Agreement. They cannot give you advice on your options.