Several business owners have filed a motion in the Eastern District of Louisiana arguing that a recent policy issued by Claims Administrator Patrick Juneau effectively destroys their claims because much of their sales were in cash. Version 3 of Policy 345 requires certain claimants to submit “documentation to establish the addresses/locations of their customers” which, admittedly, “is particularly problematic for businesses that deal primarily in cash.” This policy only applies to a subset of claimants who do not automatically qualify under the objective revenue test requirements of the settlement. As a result, the claimants must prove they suffered a drop in revenue from non-local customers over an identical three month period in 2010 as compared to 2009.
The business owners argued this policy is “neither consistent with the terms of the agreement nor beneficial to the economic class.” They stated that the policy changed how supporting documentation is treated and how the calculation is performed, resulting in “the most disadvantageous interpretation possible to claimants” which is contrary to what is supposed to be a claimant-friendly settlement. The Claims Administrator specifically recognized these documentation requirements are mandatory and cannot be waived. Very likely this will result in the denial of many primarily cash-based businesses who must meet the customer mix requirements to establish their eligibility.
The claimants in their motion also argue the shifting nature of the policy has denied them their due process rights as the latest change came after the deadline for claimants to opt out of the settlement. The policy, issued on April 21, 2014, came well after the Nov. 1, 2012, opt-out deadline wherein claimants had to inform the Claims Administrator they did not want to pursue a claim in the settlement. The motion requests that Mr. Juneau rescind the latest version of Policy 345 and revert to his initial interpretation of it which, according to the claimants, does not discriminate against cash business.
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.