NOTICE OF PENDING CLASS ACTION PLEASE READ THIS NOTICE CAREFULLY AS YOUR LEGAL RIGHTS MAY BE AFFECTED.
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1 NOTICE OF PENDING CLASS ACTION PLEASE READ THIS NOTICE CAREFULLY AS YOUR LEGAL RIGHTS MAY BE AFFECTED. THIS DOCUMENT SUPPLEMENTS THE NOTICE SENT TO CLASS MEMBERS VIA POSTCARD, PROVIDING FURTHER INFORMATION AS TO THE SETTLEMENT IN A LAWSUIT ENTITLED ALL-SOUTH SUBCONTRACTORS, INC. v. AMERIGAS PROPANE, INC., ET AL. THE SETTLEMENT AFFECTS AMERIGAS CUSTOMERS IDENTIFIED IN AMERIGAS RECORDS AS FOLLOWS: (A) RESIDENTIAL CUSTOMERS WHO PAID ONE OR MORE FUEL RECOVERY FEES TO AMERIGAS BASED ON A DELIVERY OF PROPANE OR OTHER TRANSACTION OCCURRING IN FLORIDA FROM OCTOBER 31, 2010 THROUGH AND INCLUDING JUNE 30, 2012; AND (B) COMMERCIAL CUSTOMERS WHO PAID ONE OR MORE FUEL RECOVERY FEES TO AMERIGAS BASED ON A DELIVERY OF PROPANE OR OTHER TRANSACTION OCCURRING IN FLORIDA FROM OCTOBER 31, 2010 THROUGH AND INCLUDING DECEMBER 31, THIS LONG FORM NOTICE PROVIDES YOU WITH FURTHER INFORMATION ON THE CLASS SETTLEMENT, WHICH MAY AFFECT YOUR RIGHTS AS WELL AS YOUR ABILITY TO PARTICIPATE IN THE SETTLEMENT. THE FOLLOWING RECITATION DOES NOT CONSTITUTE THE FINDINGS OF THE COURT. IT SHOULD NOT BE UNDERSTOOD TO BE AN EXPRESSION OF THE COURT S VIEWS ON THE MERITS OF ANY CLAIM OR DEFENSE RAISED BY THE PARTIES. I. INTRODUCTION AND SUMMARY This is to notify you of a lawsuit entitled All-South Subcontractors, Inc. v. AmeriGas Propane, Inc. et al., Circuit Court of the First Judicial Circuit in and for Escambia County, Florida, Case No CA , which concerns the charging of fuel recovery fees by AmeriGas in connection with transactions occurring in Florida. You previously received a Notice via postcard because AmeriGas records indicate that you may be one of the customers who paid AmeriGas a fuel recovery fee in Florida during the pertinent period. This Long Form Notice provides instructions on the options available to you in particular, it will explain your options: Receive a Settlement Payment Exclude Yourself from (or opt out of ) the Settlement Object to the Settlement If you do not opt out of the settlement, you can participate in the settlement by submitting a claim form. Your claim form must be submitted online at no later than January 15, 2018 or if mailed, postmarked no later than that date. Instructions on how to submit claims appear below in Section V.B. If you do not want to be a part of the settlement and do not want to be subject to the release of claims set forth below, you must submit an opt out request that is received no later than November 6, Instructions on how to do this appear below in Section V.C. If you want to object to the settlement, and you have not excluded yourself from the settlement, you must submit a written objection that is received no later than November 6, Instructions on how to do this appear below in Section V.D. II. THE CUSTOMERS RECEIVING THIS NOTICE All-South Subcontractors, Inc. ( All-South ), a customer of AmeriGas, is pursuing this lawsuit as a class action. In class actions, one or more individuals bring claims on behalf of themselves and also seek to bring those claims on behalf of others who allegedly have similar claims.
2 AmeriGas denies all of All-South s claims. It contends that its fuel recovery fee is properly calculated and is charged fairly, and that AmeriGas has always disclosed its fuel recovery fee to customers fairly and accurately. AmeriGas also contends that if this lawsuit were to proceed, it could not properly go forward on a class basis. Nevertheless, AmeriGas has agreed to resolve this lawsuit in the fashion set forth herein, to avoid the expense and disruption of litigation. This Notice and the proposed settlement affect all customers of AmeriGas (excluding customers of Heritage Propane who became AmeriGas customers as a result of AmeriGas acquisition of Heritage Propane on or about January 12, 2012) who paid one or more fuel recovery fees to AmeriGas based on a delivery of propane or other transaction occurring in Florida during the Class Period, which is (a) from October 31, 2010 through and including June 30, 2012 for residential customers, and (b) from October 31, 2010 through and including December 31, 2012 for commercial customers. All such customers are referred to in this Notice as class members or collectively as the Class. III. THE ALLEGATIONS BY ALL-SOUTH All-South alleges that AmeriGas violated Florida s Deceptive and Unfair Trade Practices Act ( FDUTPA ), Fla. Stat , et seq., and unjustly enriched itself in charging fuel recovery fees. All- South alleges that AmeriGas fuel recovery fee is deceptive because it allegedly bears no relation to AmeriGas actual fuel costs. All-South sought to bring the lawsuit on behalf of all persons who paid AmeriGas fuel recovery fees for propane that was delivered in Florida from October 31, 2010 to the date of class notice. AmeriGas has reviewed the claims in this lawsuit in detail, and it denies them. It is AmeriGas position that the fuel recovery fee is calculated monthly by AmeriGas finance department, based on actual data reflecting AmeriGas fuel costs and the total number of deliveries made, and a fair and accurate description of the fee appears on AmeriGas invoices, AmeriGas website, and AmeriGas terms and conditions. Although AmeriGas believes that it has always accurately and fairly disclosed its fuel recovery fees to customers and has strong arguments to prevail in the lawsuit, it has chosen to work with All-South and its lawyers to resolve this matter to avoid the expense and disruption of litigation. IV. DESCRIPTION OF THE SETTLEMENT A. Summary of the Settlement On behalf of the Class, All-South has reached a voluntary settlement agreement with AmeriGas. The total maximum amount of the settlement is $1,800,000. This amount is referred to below as the Settlement Amount. This amount will cover payments to participating class members as well as (i) attorneys fees payable to class counsel, (ii) reimbursement of class counsel s litigation expenses, (iii) a class representative incentive award, and (iv) the costs of administering the settlement. Neither AmeriGas nor its employees have admitted any liability or wrongdoing. A full copy of the settlement agreement, which is entitled the Stipulation Re: Settlement of Class Action, as well as other public documents filed with regard to this matter, can be inspected in the Office of the Court Clerk (see below) or at this website: The Court has granted preliminary approval of the settlement, and the Court has directed the parties to send this Notice. As set forth in greater detail in the Release of Claims section below, class members who do not opt out of the settlement will give up any claims against AmeriGas and its affiliates relating to any fuel recovery fees paid during the Class Period. Class members who opt out of the settlement will not give up their claims, but they will not receive any payment under this settlement. 2
3 B. What Will I Get Under the Settlement? To obtain payment, you must submit a claim form establishing your eligibility to participate in the settlement. A claim form entitled Settlement Claim Form is posted at this website: You can also request that a claim form be mailed to you, by calling The payments to class members will be calculated according to the total dollars they paid in fuel recovery fees to AmeriGas based on transactions occurring in Florida during the Class Period, based on data maintained in AmeriGas records in the ordinary course of business. The maximum amount each class member will receive is 40% of the total dollars paid in fuel recovery fees based on transactions occurring in Florida during the Class Period. The payment to each class member may ratably decrease from this amount if the total settlement payments due to class members who timely submit qualifying claim forms would exceed the Settlement Amount after deducting the following amounts as are approved by the Court: (i) attorneys fees, (ii) litigation expenses, (iii) a class representative incentive award, and (iv) the costs of administering the settlement. C. Is My Settlement Payment Taxed? Each class member will be solely responsible for tax reporting of any payment received under this settlement and for paying any taxes associated with the payment. Neither All-South, All-South s attorneys (referred to below as Class Counsel ), AmeriGas, nor AmeriGas attorneys make any representations concerning the tax consequences of this settlement or your participation in it. If you have any questions about the tax consequences of the payments you may receive under the settlement, you should consult your tax advisor. D. How Much Will Class Counsel Be Paid in Attorneys Fees? Class Counsel will request that the Court award them attorneys fees of $600,000, which is one-third of the Settlement Amount described above. Class Counsel will also seek reimbursement of up to $30,000 in litigation expenses incurred in this case, which will also be subject to Court approval. Any amounts approved by the Court will constitute full payment for all legal fees of Class Counsel and expenses incurred in the lawsuit, including any work they do in the future. The application for these fees and costs will be filed with the Court, and will be subject to Court approval. E. What Deductions Will Be Made From the Settlement Amount? The Settlement Amount will be used for the payments to class members and the attorneys fees and costs set forth above, and it will also be used to pay for (1) settlement administration expenses, and (2) a class representative incentive award, subject to the approval of the Court. V. THE RIGHTS AND OPTIONS OF CLASS MEMBERS Customers such as yourself who are members of the Class have several options: (i) You may obtain a settlement payment by completing and submitting a claim form as detailed below no later than January 15, 2018 (see below for more details). Submitting a valid and timely claim form and participating in the settlement will mean that you receive a settlement payment, and that you release your claims against AmeriGas, as set forth below. (ii) You may opt out of the settlement by sending a written request to the claims administrator. Requests to opt out must be received no later than November 6, 2017 (see below for more details). If 3
4 you opt out, you will not receive a settlement payment, and you will not release any claims against AmeriGas (see below for more details). (iii) You may object to the settlement by submitting your written objections in the manner described below. Objections must be received no later than November 6, If you object to the settlement, you will still remain in the class and participate in the settlement (see below for more details). A. How Do I Make Corrections to My Name or Address? If you wish to change the name or address listed on the Notice you received via postcard, please complete the form entitled Change of Name and/or Address Form and submit it before the deadline specified on the form. The Change of Name and/or Address Form is posted at this website: You can also request that a change of address form be mailed to you, by calling B. How Do I Receive Payment? Class members, including you, must submit a qualifying claim form demonstrating their eligibility to participate in the settlement and receive payment. You must complete a claim form (posted at this website: and submit it electronically on or before January 15, 2018 or mail the completed claim form to the Claims Administrator at FL Fuel Recovery Fee Settlement, c/o Dahl Administration, P.O. Box 3614, Minneapolis MN postmarked no later than January 15, Class members who remain in the class will be represented by All-South and Class Counsel. The lawyers acting as Class Counsel in this matter are the following: PRICE ARMSTRONG, LLC OSCAR M. PRICE, IV NICHOLAS W. ARMSTRONG ND Avenue North #1 Birmingham, AL Telephone: TAYLOR, WARREN & WEIDNER, P.A J. PHILLIP WARREN C. PHIL HALL KEITH WEIDNER 1823 N. 9th Avenue Pensacola, FL Telephone: Class members who remain in the class may choose to retain their own attorneys. Class members who choose this option will be responsible for their own attorneys fees and costs. Class members who do not opt out of the settlement may also object to the terms or nature of the settlement at or prior to the hearing on the settlement using the procedure set forth below. C. How Do I Opt Out of the Settlement? Class members may elect to opt out of the settlement and thus exclude themselves from this lawsuit and the associated settlement and judgment. Class members who opt out will NOT receive a payment and will remain free, subject to the statute of limitations and other similar restrictions, to bring claims against AmeriGas relating to the imposition of fuel recovery fees during the Class Period. Class members who wish to opt out of this settlement must mail a timely written request to the Claims Administrator at FL Fuel Recovery Fee Settlement, c/o Dahl Administration, P.O. Box 3614, Minneapolis MN The opt out request must state the class member s full name and address, and it must make the following or a substantially similar statement: I wish to opt out of the All-South settlement, and I understand by doing so, I will not receive a payment. To be effective, the request to opt out must be received no later than 4
5 November 6, This deadline is final, and opt out requests that are not received on or before that date will not be honored. D. How Do I Object to the Settlement? If you have not opted out, you can submit a written objection to any terms of the settlement. Your objection must be in writing and include your full name, address, telephone number, and signature. The objection must include a statement that you object to the settlement in All-South Subcontractors, Inc. v. AmeriGas Propane, Inc. et al., Circuit Court of the First Judicial Circuit in and for Escambia County, Florida, Case No CA and (a) the objecting party s name, signature, address, telephone number, and (if known) AmeriGas customer number; (b) a notice of intention to appear, either in person or through an attorney, with the name, address, and telephone number of the attorney, if any, who will appear; (c) certification that the objecting party is a member of the Settlement Class; (d) a statement of each objection asserted, and its basis, the facts underlying each objection, and the legal authorities, if any, underlying each objection; (e) copies of any exhibits the objecting party may offer at the hearing; and (f) a list of all witnesses, if any, the objecting party may call to testify at the hearing. The objection must be received by the claims administrator at FL Fuel Recovery Fee Settlement, c/o Dahl Administration, P.O. Box 3614, Minneapolis MN no later than November 6, If the Court overrules your objection, you will still remain in the class and release pertinent claims as set forth below in Section VI. VI. RELEASE OF CLAIMS All class members who do not opt out of the settlement will be subject to the judgment connected with this lawsuit and associated settlement. This means they shall be deemed to have forever released and discharged AmeriGas and all its past and present affiliates, predecessors, successors, acquired entities, and any of their directors, officers, employees, partners, members, principals, agents, insurers, co-insurers, re-insurers, shareholders, attorneys, and personal or legal representatives (herein collectively, AmeriGas Releasees ) from any and all claims, demands, rights, liabilities and causes of action of every nature and description whatsoever, including without limitation statutory, constitutional, contractual or common law claims, whether known or unknown, whether or not concealed or hidden, whether arising under federal or state law, against the AmeriGas Releasees, or any of them, that arise from or relate to any fuel recovery fees paid during the Class Period, including without limitation, claims under the FDUTPA, any and all claims pled in the Litigation, and claims for damages, unpaid costs, penalties, liquidated damages, punitive damages, interest, attorneys fees, litigation costs, restitution, or equitable relief. All of these released claims are collectively referred to in this Notice as Released Claims. The Released Claims include claims which the class member does not know or suspect to exist in his, her, or its favor at the time of the entry of the court s judgment, and which, if known by him, her, or it might have affected his, her, or its settlement with or release of the AmeriGas Releasees, or might have affected his, her, or its decision to opt out of the settlement or to object to this settlement. VII. HEARING ON SETTLEMENT Following a hearing on August 25, 2017, the Court granted preliminary approval for the settlement of this lawsuit as a class action and scheduled a hearing on final approval for November 20, 2017 at 8:00 a.m. This final approval hearing will take place before the Honorable Edward P. Nickinson, III in his courtroom of the Circuit Court in and for Escambia County, Florida, located at 190 Governmental Center, Pensacola, Escambia County, Florida. Class members can express their views on the settlement at or before this hearing but they are not required to do so, nor are they required to attend this hearing to receive payment or exercise other rights. 5
6 Again, your attendance at this hearing is completely optional, and class members like you need not appear at this hearing to receive payment. VIII. EXAMINATION OF PAPERS FILED IN THIS LAWSUIT This Notice does not fully describe this settlement. Members of the public, including but not limited to persons or entities whose rights may be affected by the lawsuit, may inspect the files (including the full settlement agreement) through the Escambia County Court Clerk at the following address: Clerk of Court, Circuit Court in and for Escambia County, 190 W Government St., Pensacola, FL In addition, at this website: you can obtain copies of the following documents: (a) the operative complaint in the lawsuit; (b) the operative answer to the complaint filed by AmeriGas in the lawsuit; (c) the complete settlement agreement; (d) the motion for preliminary approval of the settlement, including any request for attorneys fees, litigation costs, and class representative incentive award; (e) the order granting preliminary approval and setting the November 20, 2017 hearing on final approval of the settlement; (f) the Postcard Notice sent to all class members; (g) a copy of this Long Form Notice; (h) a Change of Address Form; and (i) a Claim Form. PLEASE DO NOT CALL OR WRITE THE COURT OR AMERIGAS WITH QUESTIONS REGARDING THIS ACTION. IF YOU HAVE ANY QUESTIONS, PLEASE CALL, OR WRITE THE CLAIMS ADMINISTRATOR AT: FL Fuel Recovery Fee Settlement c/o Dahl Administration P.O. Box 3614 Minneapolis MN AND info@frfsettlement.com 6
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