- Why did I get a Notice?
You may have paid one or more utility bills that included an assessment of the Los
Angeles County Utility User Tax. If you are receiving this Notice, you may be a
Class Member based upon Utility User Tax payments that you made with payment of
a utility bill(s).
Back to index
- What is the lawsuit about?
In this lawsuit, the Plaintiffs alleged that the Utility User Tax, Los Angeles County
Code Chapter 4.62, is an illegal tax because of alleged violations of Proposition
62, Government Code sections 53720 to 53730, Proposition 13, California Constitution
Article XIII, and state and federal Equal Protection rights. The County of Los Angeles
denied the allegations in the lawsuit.
Back to index
- What is a class action?
In a class action lawsuit, one or more people called “Named Plaintiffs” or “Class
Representatives” (in this case, Joe Oronoz, Larry Pitts, and Craig and Cheryl Kaufman)
sue on behalf of other people who have similar claims. The people with similar claims
together are a “Class” and the individuals are called “Class Members.” The County
of Los Angeles is called the Defendant. The Court decides whether the proposed Settlement
is fair, adequate and reasonable for everyone in the Class – except for those people
who choose to exclude themselves from the Class.
Back to index
- Why is there a settlement?
The Court did not decide in favor of Plaintiffs or Defendants. The Plaintiffs thought
they would have won monetary compensation and injunctive relief if there was a trial,
and Defendants thought that Plaintiffs would have won nothing.
But there was no trial. Instead, both sides agreed to the Settlement. That way,
they avoided the cost of a trial, and the Class Members may get compensation. The
Class Representatives and the lawyers for the Class think the Settlement is best
for all Class Members.
Back to index
- Who is included in the Settlement?
The Court has defined the Class as all individuals who paid the Los Angeles County
Utility User Tax at any time between February 16, 2004 and November 4, 2008.
Back to index
- What is the Utility User Tax?
The Utility User Tax, or UTT, includes a telephone user tax, an electricity user
tax, and a gas user tax. These taxes are collected by the County of Los Angeles
through the telephone, electricity and gas utility providers. The utility providers
include the tax assessment with each bill. The tax is only charged to residents
and businesses in the unincorporated areas of Los Angeles County – those areas not
located within the boundaries of a city. By way of example, residents of the Cities
of Los Angeles, Beverly Hills and Santa Monica are not residents of the unincorporated
areas of Los Angeles County. To see the map of locations included in the Settlement,
click here.
Back to index
- What are my options?
You have four options:
- File a claim. Deadline to file a claim has passed
- Exclude yourself from the settlement class. Deadline to file an exclusion has passed.
- Object to the settlement. Deadline to object to the settlement has passed.
- Do nothing.
Back to index
- What does the Settlement provide?
The County of Los Angeles:
- Will place $65 million in a common fund from which Class Members may seek a refund;
- Will give compensation in the form of a refund to taxpayers who paid Utility User
Tax between February 16, 2004 and November 4, 2008, and who submit a Claim Form
authorizing their utility service providers to provide documentation to the County
of Los Angeles or its Claims Administrator in order to verify and determine the
amount of refund to which the taxpayer is entitled;
- Will place money in a cy pres fund to be used in the unincorporated areas of Los
Angeles to benefit the Class Members; and
- Will hold an election in November of 2008 in the unincorporated areas of Los Angeles
to validate the Utility User Tax pursuant to applicable law at a rate of 4.5% and
will not increase the Utility User Tax rate for a period of fifteen (15) years.
Back to index
- What do I get from the Settlement?
There are two types of benefits in this Settlement:
Refund of Prior UUT Payments:
If you choose to fill out a Claim Form, you may be eligible to receive a refund
of UUT you paid between February 16, 2004 and November 4, 2008, subject to (a) a
pro rata discount if the amount of claims exceeds the amount available for refund;
and (b) the availability of information from your utility service providers. The
County will place $65 million in a common fund from which Class Members may seek
a refund. Any remainder from the unclaimed portion of the common fund (after payments
to Class Members, attorney’s fees and expenses, and administrative costs) shall
be added to the cy pres fund described below, which is intended to be used
to address education, medical needs, homelessness, and/or police and fire protection
in the unincorporated areas of Los Angeles.
Prospective Relief: Funds Dedicated to Services in the Unincorporated Areas of
Los Angeles:
Under the proposed Settlement, the County of Los Angeles will establish a cy pres
fund of at least $10 million to be used to address education, medical needs, homelessness,
and/or police and fire protection in the unincorporated areas of Los Angeles.
The County also will hold an election in the unincorporated areas of Los Angeles
in November, 2008 to validate the UUT pursuant to applicable law at a rate of 4.5%.
The County will not seek to raise the UUT rate for a period of fifteen (15) years
following the election.
Back to index
- How can I submit a claim?
The deadline to file a claim has passed
Back to index
- When would I get my Settlement Check?
The Court will hold a hearing on March 13, 2009, to decide whether to approve the
Settlement. If the judge approves the Settlement, there still may be appeals of
her decision. It’s always uncertain whether these appeals can be resolved, and resolving
them can take time, perhaps more than a year. Please check this website for updated
information.
Back to index
- Will any of my personal information be given to anyone?
The County of Los Angeles has agreed that no information provided in the claims
process or received from your utility service providers will be used for collection
purposes or provided to third parties (other than the Claims Administrator for this
Settlement).
Back to index
- What am I giving up to get a Settlement Check or stay in the
Class?
Unless you exclude yourself, you are staying in the Class, and that means that you
can’t sue, continue to sue, or be part of any other lawsuit against the County of
Los Angeles about the legal issues in this case ever again. It also means that all
the Court’s orders will apply to you and legally bind you.
In summary, “Released Claims” means and includes any and all claims, demands, rights,
damages, obligations, suits, debts, liens, contracts, agreements and causes of action
of every nature and description whatsoever, that were or could have been brought
against the County of Los Angeles based upon or related to the facts alleged in
the Complaint, including but not limited to charging, billing, or collection activity
related to the Utility User Tax, of or on behalf of the County, based on the alleged
failure to seek voter approval of the Utility User Tax and equal protection allegations
raised in the Complaint. “Released Claims" does not include those claims raised
in the separately filed lawsuit Granados v. County of Los Angeles, LASC Case
No. BC361470 or Tracfone Wireless v. County of Los Angeles, LASC Case No.
BC 357628, which are not being released by this Settlement.
The complete description of the “Released Claims”—that is, all claims you will be
giving up if you stay in the Settlement Class—is in the Settlement Agreement. If
you would like to see the Settlement Agreement, click here.
Back to index
- How can I exclude myself from the Class?
The deadline to file an exclusion has passed.
Back to index
- If I don’t exclude myself, can I sue the County of Los Angeles
for the same thing later?
No. Unless you exclude yourself, you give up any right to sue, continue to sue,
or be part of any other lawsuit against the County of Los Angeles about the legal
issues in this case. It also means that all the Court’s orders will apply
to you and legally bind you even if you do not submit a Claim Form.
If you have a pending lawsuit, speak to your lawyer in that case immediately. You
must exclude yourself from this Class to continue your own lawsuit. Remember, the
exclusion deadline is February 20, 2009. This Settlement does not affect your ability
to pursue any claims you may have against the County of Los Angeles in Granados v.
County of Los Angeles, LASC Case No. BC361470 or Tracfone Wireless v. County
of Los Angeles, LASC Case No. BC 357628.
Back to index
- If I exclude myself, can I get a Settlement Check?
No. If you exclude yourself, please do not send in a Claim Form to ask for a refund.
However, you may sue, continue to sue, or be part of a different lawsuit against
the County of Los Angeles.
Back to index
- If I ask to be excluded from the Settlement Class, and change
my mind later, can I get back into the Settlement Class?
The deadline to file an exclusion has passed.
Back to index
- How can I object to the Settlement?
The deadline to file an objection has passed.
Back to index
- What’s the difference between objecting and excluding?
Objecting is simply telling the Court that you don’t like something about the Settlement.
You can object only if you stay in the Class. Excluding yourself is telling the
Court that you don’t want to be part of the Class. If you exclude yourself, you
have no basis to object because the case no longer affects you.
Back to index
- What happens if I do nothing at all?
If you do nothing, you’ll get no money from this Settlement. You also won’t be able
to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against
the County of Los Angeles about the legal issues in this case, ever again.
Back to index
- Who is representing the Class Members in this case?
The attorneys for the Class are David Brown and Paul Heidenreich of Huskinson, Brown,
Heidenreich & Carlin and Stephen Bernard of Bernard & Bernard.
Back to index
- Do I have to pay the lawyers?
You do not need to pay any of the fees or expenses for Class Counsel. Class Counsel
will apply to the Court for an award. Any fees and expenses awarded to Class Counsel
by the Court will be paid by the Defendant.
Back to index
- How will the lawyers be paid?
Class Counsel’s attorney’s fees and expenses will be paid from the $65 million common
fund.
Back to index
- Should I hire my own lawyer?
You do not need to hire your own lawyer because Class Counsel is working on your
behalf. If you want your own lawyer, you may hire one, but you will have to pay
that lawyer. For example, you can ask him or her to appear in Court for you if you
want someone other than Class Counsel to speak for you. You may also appear for
yourself without a lawyer.
Back to index
- What is the Fairness Hearing?
At this hearing the Court will consider whether the Settlement is fair, reasonable,
and adequate. If there are objections, the Court will consider them. The judge will
listen to people who have asked to speak at the hearing. The Court may also decide
how much to pay to Class Counsel.
Back to index
- When and where will the Fairness Hearing be held?
The Fairness Hearing was held on March 13, 2009, at 9:00 a.m., in Department 308
of the Los Angeles County Superior Court, located at 600 South Commonwealth Avenue,
Los Angeles, California 900505.
Back to index
- Do I have to attend the Fairness Hearing?
No. Class Counsel will answer any questions the judge may have. Of course, you are
welcome to come at your own expense. If you send an objection, you don’t have to
come to Court to talk about it. As long as you mailed your written objection on
time, the Court will consider it. You may also pay your own lawyer to attend, but
it is not necessary.
Back to index
- May I speak at the Fairness Hearing?
You may ask the Court for permission to speak at the Fairness Hearing. To do so,
you must send a letter saying that it is your “Notice of Intention to Appear in
Oronoz, et al. v. County of Los Angeles.” Be sure to include your name,
address, telephone number, and your signature.
Your Notice of Intention to Appear must be postmarked no later than February 20,
2009, and be sent to the Claims Administrator. You cannot speak at the hearing if
you excluded yourself.
Back to index
- How can I get more information?
You can write to Oronoz v. County of Los Angeles Claims Administrator, P.O.
Box 9426, Minneapolis, MN 55440-9426, or call the Claims Administrator toll-free
at 1-866-783-5877. You may also write to one of the lawyers at the addresses below:
David Brown
Paul Heidenreich
HUSKINSON, BROWN, HEIDENREICH & CARLIN
865 Manhattan Beach Blvd., Suite 200
Manhattan Beach, CA 90266
OR
Stephen Bernard
BERNARD & BERNARD
10990 Wilshire Blvd., Suite 1175
Los Angeles, CA 90024-4305
Back to index
- How do I know if I am a proper claimant?
You may qualify for a refund if you are or were a resident in the unincorporated
areas of Los Angeles County and you paid bills for the use of telephone, electricity
or gas in Los Angeles County at any time between February 16, 2004 and November
4, 2008, and those bills included a Los Angeles Utility User Tax, and you submitted
a timely and proper Claim Form. This tax includes a telephone user tax, an electricity
user tax and a gas user tax. The taxes were collected by the County of Los Angeles
through the telephone, electricity and gas utility providers.
Back to index
- Was my claim received?
The Claims Administrator has received approximately 135,000 claims. It is, therefore,
not possible to acknowledge each and every claim that has been received. Claimants
will know that their claim was received when refund checks and denial of claim letters
are sent.
Back to index
- When will refunds be mailed?
The Claims Administrator is processing approximately 135,000 claims. Each of the
claims must be reviewed and verified by the Claims Administrator and utilities providers
before refunds can be issued. Accurate claims processing takes a significant amount
of time. It may take a minimum of six months to process all of the claims. Please
be patient.
Back to index
- If I am not a proper claimant, how will I be informed?
If you submitted a Claim Form and are determined to be ineligible for a refund,
you may receive a denial of claim letter from the Claims Administrator after all
claims have been processed.
Back to index