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Old 05-17-2017, 12:49 PM   #1
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Is the Mass Lawsuit by the Stern Law Group legitimate?

I had responded to a feed on Facebook some months back regarding the transmission problems with the MKIII Focus. I gave it no second thought. Today I got a call from a representative from the Stern Law group. The conversation was fine but someone would ultimately need to sign a 4 page agreement for representation. They represented this as causing absolutely no out of pocket expenses for me, but no guarantee of the end result. There is some ambiguous language that had me hesitant to sign.
Are any of you out there familiar with this. Is this legit and/or safe to sign.
I was told they need the form back by 5/22/17. They also needed the following docs.
Purchase Order and copy of certificate of title (if applicable)*
Retail Installment Contract or Lease (front and back)*
Copy of monthly payment stub (if applicable)*
Copy of insurance and registration*
All repair and maintenance documents in your possession.*
Copy of cover and summary page from warranty book.*
Receipts for any dealer-installed or after-market accessories.*
Receipt for Extended Warranty, If any*
Receipt for Credit Life/Credit Disability Insurance, If any. Please also note if you requested this insurance.*
Title - Statement of Vehicle Sales.*
Copies of any correspondence between you and dealer/manufacturer/finance co.*
Copies of arbitration documents (if applicable)*
Brief letter explaining symptoms, both current and past, names of all servicing dealers and an explanation of how the defect substantially impairs your vehicle's use, value and safety.
The form is as follows.
CONSUMER FRAUD AND/OR WARRANTY REPRESENTATION AGREEMENT

Thank you for asking us to represent you with respect to your potential claims against Ford Motor Company arising out of the purchase or lease of your Ford vehicle. Based upon the information you provided, we believe you have a meritorious claim. The purpose of this letter is to reduce our representation arrangement to writing and to provide you answers to commonly asked questions.

I. COST OF OUR REPRESENTATION

The consumer laws applying to your case allow for fee-shifting. That means that the manufacturer will have to pay your attorney fees and costs that are accumulated in the case for representing you in this matter. In the event that no recovery is obtained on your claim, you will not be responsible to pay anything to your attorneys for their time or services.

Pre-Litigation and Litigation costs and expenses will be advanced by the attorneys, and will be paid by the manufacturer once a settlement or court award is achieved. In the interest of transparency, we feel it pertinent to let you know how we will bill Ford for our work. Even though you are not responsible for the attorney fees/costs in your case, we will be keeping track of our time at our standard hourly rates of $425.00/hour for attorney time. The paralegal’s rates are $165/hour, and will be due from the manufacturer at the time the settlement or award is distributed.

Again, you are not responsible for the attorney fees/costs in your case. The manufacturer will have to pay the firm’s attorney fees/costs that were accumulated in the case for representing you.

The firm will keep a bill for all the legal work performed in your case for pre-litigation and litigation work that will be paid by the manufacturer. The attorneys will be equally sharing all fees in this matter and the attorneys accept full legal and ethical responsibility for your claim. The total amount of the attorneys’ fees will not be increased as the result of the fee sharing.

Also, some cases involve offers of settlement that are ‘inclusive’ of attorneys’ fees and costs. In the event that you accept an inclusive offer of settlement, the attorneys’ fees and costs shall be paid from such settlement as outlined above.

You agree to permit the attorneys representing you to seek and prosecute any claim for attorney fees and costs including the taking of an appeal. You assign over to us the right and entitlement to attorney fees and costs directly from the proceeds and grant us a lien in the proceeds to the extent of our fees and costs, and relinquish to the firm any claim to attorney fees and costs. You also agree that interest assessed on any portion of any judgment, award, settlement or other recovery, that is attributable to attorney fees or costs that have not been paid by you prior to entry of the judgment or award shall be the property of Attorneys. We make no representation concerning the taxability of any recovery or of the attorney fees to be awarded or recovered. You may be liable for tax on the entirety of any recovery and should consult your tax advisor with any questions.

If it is necessary for us to file a fee petition with a court, arbitration panel or other tribunal having jurisdiction over your case, we reserve the right to petition for fees based on what we believe to be a reasonable hourly rate at the time of the petition. We also reserve the right to negotiate with the opposing side based on what we believe to be a reasonable hourly rate at the time our negotiations take
DocuSign Envelope ID: B2B325B0-9A71-4522-BFEB-D8E9CFAF3A6A
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place. In other words, we reserve the right to collect fees at a higher hourly rate than indicated above, provided such fees are to be paid by the opposing side.

You agree not to waive the right to recover attorney’s fees as a condition of settlement. You agree to cooperate with us in order to obtain an award of attorney’s fees, either through voluntary settlement with the other party or a court or arbitration award.

The Client agrees that attorneys may have the option to structure or defer all, or a portion, of its fee (the “Deferred Amount”), in exchange for certain future periodic payments. Such payment of Deferred Amount, whether by the defendant, defendant’s agent, or a trust established for the purpose of paying settlement payments in the case, shall fully discharge the Client’s and the defendant’s obligation with respect to the portion of the settlement proceeds that represent fees the attorneys have elected to defer. The attorneys will specify the type of payment arrangement before the case goes to judgment or is settled.


LIMITATION ON SCOPE OF REPRESENTATION

This agreement is intended to cover economic claims only. We will not be pursuing any other claims on your behalf, including by way of example and not by limitation, claims for bodily injuries, mental distress, no-fault insurance claims, or insurance claims. If you have questions about your rights or possible claims outside the scope of our representation, please let us know and we will be glad to discuss entering into a separate retainer agreement or, if necessary, we will refer you to another attorney.

It is the attorneys’ intent to file your claim with other (“aggregated”) claims of not less than 100 claimants per case. However, if for any reason your claim is severed by a court or otherwise determined to be not eligible for the aggregate filing, you and the attorneys have the option of rejecting the claim or requiring client to pay the filing fee and any costs for any individually filed claim. You should not be overly concerned about expenses because the law provides that such expenses are recoverable against the manufacturer.

APPEALS - SEPARATE AGREEMENT

Please understand that we will use our best efforts in handling your case, but cannot guarantee you any favorable results. It is further understood that this agreement covers our services only in the trial court. In the event there is an interlocutory (interim) appeal or a judgment or final order and you wish to retain our services to appeal or defend same, we will enter into a separate agreement to be determined at that time. Appeals are normally handled on an hourly basis at a rate $50.00 per hour more than our hourly rate for trial court services. We may also require a retainer fee to be paid with respect to appellate services.

COPIES OF FILE MATERIALS

You understand that upon reasonable notice and written request, upon conclusion of the representation, you are entitled to receive your client file from the attorney. You agree that should such a request be made, you shall reimburse the Law Firms for the actual cost incurred for duplication of the file and that the reimbursement of such expense is a condition precedent to the release of the file to you.
DocuSign Envelope ID: B2B325B0-9A71-4522-BFEB-D8E9CFAF3A6A
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You further understand that the attorneys reserve the right, after 90 days from the completion of the representation, to transfer storage of the file to electronic means, and to destroy the physical file by secure means. You further understand that the attorneys may destroy the file, whether stored in its physical form or electronically, within 5 years from the date of completion of the representation.

ATTORNEY'S LIEN

You agree that we will have an attorney's lien on any proceeds recovered as a result of this action for the services we have rendered, as well as any outstanding costs.

II. SPECIAL POWER OF ATTORNEY

You hereby give The Liblang Law Firm, P.C. and/or Stern Law, PLLC, the special power of attorney and authority to execute any and all pleadings, claims, drafts, checks, deposits, orders and other papers which you could properly execute in this matter, and to receive in the name and stead of yourself, any money or other things of value which may properly be payable or deliverable to you on account of any judgment, settlement, award, or otherwise received in connection with this matter, to be held in trust for you and/or distributed in accordance with this Agreement.

III. CHANGE OF ADDRESS OR TELEPHONE NUMBER

If your address or telephone number changes, please let us know in writing.

IV. STAYING INFORMED ABOUT YOUR CASE

Although we have attempted to make this letter complete, you may still have questions or be unsure of some matter. If you need further clarification, we welcome your call at any time. If the attorney assigned to your case is not available when you call, please ask to speak with his or her legal assistant. Our legal assistants have extensive experience and training, and can answer most questions regarding case status and procedure.

One thing you should know is that in many cases it will take some time to know the manufacturer's position as to your claim. Please do not be concerned if you do not hear from our office for several weeks. We will keep you informed of any important developments immediately and will try to provide you with a written report as those developments occur. If you need to verify the status of your case in the interim, please drop us a note or card and we will respond as promptly as possible.

V. SIGNED REPRESENTATION AGREEMENT

We will not begin work on your case until you have a signed retainer agreement on file in our office. Signing a representation agreement and completing our questionnaire is a condition precedent to any obligation on our part to represent you in this matter.

If you agree with the arrangements we have described in this letter and would like us to begin work on your file, please sign this letter in the space provided below and return it to us. Please note that because vehicles depreciate rapidly and many factors may affect the viability of your case, we reserve the right to reject this retainer if it is returned more than 30 days from the date it is e-mailed or sent to you.
DocuSign Envelope ID: B2B325B0-9A71-4522-BFEB-D8E9CFAF3A6A
4 | P a g e


If you have any questions regarding the above, please do not hesitate to contact us prior to signing this agreement.

Thank you again for the opportunity to represent you. We look forward to working with you.

Very truly yours,

THE LIBLANG LAW FIRM, P.C., /s/ Dani K. Liblang Dani K. Liblang


STERN LAW, PLLC

/s/ Kenneth A. Stern Kenneth A. Stern

I/WE HAVE READ THE FOREGOING FEE ARRANGEMENT AND I UNDERSTAND AND AGREE WITH THE TERMS SET FORTH THEREIN.

________________________________________ Printed Name

_________________________________________ ______________________________ Signature DATE


_________________________________________ Printed Name

_________________________________________ ______________________________


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Old 05-17-2017, 01:18 PM   #2
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I would be thinking about the following:

Have similar lawsuits been successful in the past in the USA? I'm not thinking against Ford or transmission failures per se, but what is the success rate for this type of auto 'this is a piece of cr*p' lawsuit.

Have there been fatalities or injuries attributable to the transmission failing? If yes, then that should increase the chance of success?

Wasn't there a lawsuit in Aussie over the transmission? If so any Focus Fanatics members involved? or any data worth reading about that lawsuit and its outcome?

It says you are not on the hook for any costs from the suit. Any lawyers on citydata.com or Lawyers.com that could look it over for correctness, or maybe even pay a litigation lawyer to look at it? eg: If they lose, would it preclude you from getting a settlement later on when Joe Bloggs lawyers inc. successfully prosecute Ford for releasing junk they must have known about?
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Old 05-17-2017, 01:53 PM   #3
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As a secondary party to such a lawsuit. YOU may get a very small settlement.
The primary party and the LAWYERS will get a big settlement.
SO..
Say they settle for $235,000,000.
The lawyers will get $150,000,000.
The primary plaintiff may get $100,000.
The rest of you will each get a check for $35
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Old 05-17-2017, 01:59 PM   #4
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This was explained to me as a Mass and not a Class Action lawsuit. The plaintiffs don't pull from a pot of the award and divide it. I Googled the difference between the two and there is such thing as Mass Action.
Class Action vs. Mass Tort-What's the Difference? - Childers, Schlueter & Smith, LLC
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Old 05-17-2017, 05:56 PM   #5
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Quote:
Originally Posted by strtrkstooge View Post
This was explained to me as a Mass and not a Class Action lawsuit. The plaintiffs don't pull from a pot of the award and divide it. I Googled the difference between the two and there is such thing as Mass Action.
Class Action vs. Mass Tort-What's the Difference? - Childers, Schlueter & Smith, LLC
It’s interesting stuff no doubt about that. Is their tack to try and nail Ford on bringing to market a transmission that was faulty by design or has a high failure rate in service or both? Also what is the end game? Is it to get a buy back at fair market value when compared to say…a Mazda 3, so adjusted down compared to Mazda 3 resale, but not the resale crater hole that I hear the Focus has, or is it to get dollar compensation to owners? I would think the best chance would be it was faulty by design out the gate. I wonder what the Aussie tack was? Have to do some research, I bet Stern and co have.
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Old 05-17-2017, 08:00 PM   #6
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Originally Posted by iceflow View Post
It’s interesting stuff no doubt about that. Is their tack to try and nail Ford on bringing to market a transmission that was faulty by design or has a high failure rate in service or both? Also what is the end game? Is it to get a buy back at fair market value when compared to say…a Mazda 3, so adjusted down compared to Mazda 3 resale, but not the resale crater hole that I hear the Focus has, or is it to get dollar compensation to owners? I would think the best chance would be it was faulty by design out the gate. I wonder what the Aussie tack was? Have to do some research, I bet Stern and co have.
I was thinking about that. My 2014 SE with Appearance package. just over 16K miles and in excellent condition has a retail value just over 11k and trade in of about $9300. If you take the average value of a comparably equipped Civic, Sentra, Corolla, Elantra, Forte and Cruze and compare that to my car, this was one idea I had. Also if they bought it back 100% regardless of how much is owed that would be good too, but I got into this car at no money down and 0% interest. I would want the same thing again.
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Old 05-18-2017, 09:04 AM   #7
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Just a couple notes on that to consider.

Did you notice that you could end up OWING money for income taxes on the recovery paid to lawyers for fees? Even if that happens to be larger than any recovery paid to you? If they collect fees and a small settlement YEARS in the future after the car is long gone, you end up liable.

And for any settlement offers in the mean time, if you want to opt out & accept that you are liable to pay your share of legal fees to date.

If someone unthinkingly took a deal for a discounted replacement vehicle, they'd be liable for the Atty. fees to date for their share of the total. Easy to get suckered in some day in the future without realizing it. The discounts offered to Focus Owners already (in the recent past) on buying a new Ford might be enough to trigger that problem. Sign the wrong form in a stack of new car ppwk. and you're screwed.

Meanwhile there's the issue of NOT getting any warranty work done without legal approval by Ford's attorneys. At the least, that can slow things down when you have warranty work that needs to be done.

Locked in as a litigant once signed, just a few things I noticed right away to consider.
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Old 05-18-2017, 09:19 AM   #8
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Those hourly rates are insane.
My lawyer in my class action against capitol one years ago was charging $145 per hour and I thought that was pushing it.
I never did cash my $37 check.
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Old 05-18-2017, 09:45 AM   #9
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Quote:
Originally Posted by sailor View Post
Just a couple notes on that to consider.

Did you notice that you could end up OWING money for income taxes on the recovery paid to lawyers for fees? Even if that happens to be larger than any recovery paid to you? If they collect fees and a small settlement YEARS in the future after the car is long gone, you end up liable.

And for any settlement offers in the mean time, if you want to opt out & accept that you are liable to pay your share of legal fees to date.

If someone unthinkingly took a deal for a discounted replacement vehicle, they'd be liable for the Atty. fees to date for their share of the total. Easy to get suckered in some day in the future without realizing it. The discounts offered to Focus Owners already (in the recent past) on buying a new Ford might be enough to trigger that problem. Sign the wrong form in a stack of new car ppwk. and you're screwed.

Meanwhile there's the issue of NOT getting any warranty work done without legal approval by Ford's attorneys. At the least, that can slow things down when you have warranty work that needs to be done.

Locked in as a litigant once signed, just a few things I noticed right away to consider.
Thank you sir for bringing that to my attention. I always knew I would be liable for taxes on money awarded to me, but I'm not paying taxes on what the attorneys get. Especially since that may be more than anything I receive. I have an appointment 5/31 as my replacement clutches from last year at 11,600 miles are once again acting up. Not even 5k miles since then. I hate the idea of this being an annual event. There is no excuse for not having a solid and permanent fix 5 years after the onset of this issue! I will not sign the paperwork. Too much risk for me, none for the atty.
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Old 05-18-2017, 09:51 AM   #10
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Quote:
Too much risk for me, none for the atty
That's the objective of the form, limits their risk to actual cash outlays for salaries, filing fees etc..

The bills get padded so high it only takes a few 'wins' of atty. fees to still make money overall.
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