Frequently Asked Questions
What is the purpose of the
Notice?
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| Consumer Settlement Sub-Class: All persons who currently own or previously owned a Cartier watch and who had their Cartier watch repaired or serviced in the United States at a Defendant-owned Cartier boutique or directly by Defendant at any time between January 1, 2003 and November 28, 2007. |
What is the Watchmaker
Settlement Sub-Class definition?
The Court certified the Action as a class action, for settlement purposes only, pursuant to Federal Rule of Civil Procedure 23, on behalf of the members of two Settlement Sub-Classes and all of their successors in interest and transferees, immediate and remote, but not Defendant and persons or entities related to or affiliated with Defendants (collectively the "Settlement Class"):
| Watchmaker Settlement Sub-Class: All watchmakers or watch repairers in the United States operating as of the date of Preliminary Approval which are not authorized Cartier dealers or authorized Cartier repair shops as of November 28, 2007. |
Who are the attorneys
representing the Class?
The Court has designated as Settlement Class Counsel in the Action:
Pearson, Simon, Soter, Warshaw & Penny, LLP
44 Montgomery Street, Suite 1430
San Francisco, California 94104
(415) 433-9000
and
Meyers Nave Riback Silver & Wilson
575 Market Street, Suite 2600
San Francisco, California 94105
(415) 421-3711
Settlement Class Counsel are available to answer any questions from members of the Settlement Class concerning any matter contained in the Notice. You will not be charged personally for these lawyers, but rather the Court approved payment of attorneys' fees by Defendant to them as part of the Settlement.
Why did the parties
settle?
The settling parties recognized the time and expense that
would be incurred by further litigation in this matter and the
uncertainties inherent in such litigation. They have concluded that the interests of the parties would best
be served by a settlement of the litigation herein.
Defendant acknowledges that Plaintiffs have alleged that Defendant has
engaged in an unlawful tying arrangement under federal antitrust law
through its alleged policy of conditioning the purchase of Cartier
watch parts on the purchase of Cartier watch repair service, and that
Plaintiffs have alleged that the alleged tying arrangement has
resulted in harm to both watchmakers and to prior and current owners
of Cartier watches. Defendant acknowledges that its decision to confer
the benefits on consumers and watchmakers described below was caused
by the initiation and prosecution of Plaintiffs' lawsuit.
There has been no admission or finding of facts or liability by or
against any Party and nothing herein should be construed as such.
Defendant denies having committed or having attempted to commit any
violation of law or breach of duty or otherwise having acted
improperly in any respect.
What are the benefits for the
Consumer Settlement Sub-Class under the terms of the Settlement?
On December 18, 2008, each member of the Consumer Settlement Sub-Class
was mailed one $100 credit for each Qualifying
Paid Repair Service he or she received. These credits may be
used only for the purchase of a Cartier product at a Defendant-owned
Cartier boutique. These credits shall be fully transferable but are
void if not used within two years after the date the Court granted final approval of the Settlement. The date of expiration is December 12, 2010.
These credits can be aggregated, up to a maximum of two (2) credits. Each credit may be used only once. No unused amounts will
be refunded or carried forward as a credit.
Each member of the Consumer Settlement Sub-Class shall be
automatically entitled to their credit(s) without submitting any claim
form. You do not need to do anything to obtain your credit(s).
Defendant mailed these credits to the address in Defendant's
records for each member of the Consumer Settlement Sub-Class by First
Class United States Mail. If you are a member of
the Consumer Settlement Sub-Class and the Notice was originally mailed
to you at an incorrect address, please call, toll-free,
1-800-918-1029, or send an email with your old address and your
current address to watchrepairsettlement@gardencitygroup.com.
What does "Qualifying Paid
Repair Service" mean?
A "Qualifying Paid Repair Service" means each paid repair of a Cartier watch owned by a member of the Consumer Settlement Sub-Class at a Defendant-owned Cartier boutique or directly by Defendant in the United States between January 1, 2003 and November 28, 2007. Qualifying Paid Repair Service does not include estimates, gratuitous repairs or other repairs for which the customer was not charged, warranty repairs, or battery replacements and/or bracelet replacement or repairs. Defendant has records of how many Qualifying Paid Repair Services each member of the Consumer Settlement Sub-Class has had.
What are the benefits to the
Watchmakers Settlement Sub-Class under the terms of the Settlement?
Each member of the Watchmaker Settlement Sub-Class
will be entitled to apply to Richemont to become an authorized Cartier
repair shop. If you are a member of the Watchmaker Settlement
Sub-Class and have not done so already, you may request an application
by sending an email to watchrepairsettlement@gardencitygroup.com
or call, toll free, 1-800-918-1029. Richemont will evaluate applicants
based on an agreed upon Evaluation Form,
which can also be obtained from this website or requested by sending
an email to watchrepairsettlement@gardencitygroup.com
or by calling, toll-free, 1-800-918-1029. Richemont retains sole
discretion to determine which applications will be accepted.
Richemont's decision on whether to approve an application will be
final unless there is evidence that, in applying the criteria set
forth in the Evaluation Form, Richemont breached the covenant of good
faith and fair dealing, in which case the Court may become involved.
The Court granted final approval of the Settlement on July 3, 2008. However, someone filed an appeal. The parties settled the appeal. On December 11, 2008, the appeal was dismissed with prejudice. Final Court Approval occurred on December 12, 2008, and the Effective Date of the Settlement was December 15, 2008. Each member of the Watchmaker Settlement Sub-Class who applies to Richemont on or before June 12, 2009, and is accepted to become an authorized Cartier repair shop, will be entitled to:
- Receive from Richemont free of charge a set of the Cartier-specific tooling that all authorized Cartier repair shops presently must maintain to perform repairs on Cartier watches. The total initial cost of this tooling would otherwise be approximately $2,000.
- A 50% discount off the list prices for all Cartier parts that are purchased for that repair shop's own use during the two year period after becoming an authorized Cartier repair shop. The total maximum discount that a newly authorized repair shop shall receive during this two year period is $750.
What do I give up by
participating in this Settlement?
In exchange for the benefits of the Settlement, all class members who choose to participate in the Settlement by not exercising their right to opt-out of the Settlement will give up their rights to pursue certain claims against Defendant and its related entities. In particular, all class members who do not opt-out will release all claims, rights, actions, causes of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, controversies, agreements, contracts, variances, trespasses, damages, judgments, extensions, executions, and demands whatsoever (including, without limitation, any claims, whether direct, derivative, representative, or in any other capacity, arising under federal, state, local, foreign, statutory or common law or any law, rule or regulation, or in equity), whether known or Unknown, from the beginning of the world to the date of this Amended Stipulation of Settlement, against any of the Released Parties (as defined in ¶ 1.17 of the Amended Stipulation of Settlement), belonging to Plaintiffs or any or all members of the Final Settlement Class or their present or past heirs, executors, estates, administrators, predecessors, successors, assigns, parents, subsidiaries, associates, affiliates, employers, employees, agents, consultants, insurers, directors, managing directors, officers, partners, principals, members, attorneys, accountants, financial and other advisors, investment bankers, underwriters, lenders, or any other representatives of any of these persons and entities, whether or not they object to the Settlement or receive any benefit hereunder, that were asserted or could have been asserted in the Second Amended Complaint relating in any way to any conduct of the Released Parties concerning the distribution or sale of Cartier watch parts, Cartier watch repairs or Cartier watch service. Released claims do not include any of the following: (1) breach of contract claims; (2) breach of warranty claims; (3) product defect claims; and (4) claims that arise from the availability of Cartier watch parts, Cartier watch repairs, or Cartier watch service outside of the United States.
How will the attorneys get
paid?
Plaintiffs' Settlement Class Counsel applied to the Court for an award of attorneys' fees and costs in the amount of $2 million, which is based on the percentage method authorized by In re Activision Securities Litigation, 723 F.Supp. 1373 (N.D. Cal. 1989). As of the date of the Notice, the attorneys have incurred approximately $921,458.50 in attorneys' fees and approximately $104,367.67 in out-of-pocket expenses. The request for the award of $2 million was inclusive of all costs and inclusive of $10,000 in special awards ($5,000 each) for the Consumer Settlement Sub-Class Representative and a Watchmaker Settlement Sub-Class Representative. Settlement Class Counsel contend that they have earned such fees due to the benefit that Settlement Class Counsel believe the filing and prosecution of the Action conferred on the members of the Settlement Class. Defendant has agreed that it will not contest the application for fees and costs and that it will cause to be paid such amounts as the Court awards up to $2,000,000. These amounts will not come from monies that would otherwise have been paid to Settlement Class members.
What do I need to do in order
to remain in the Class?
If you qualify as a class member and do nothing,
you will be included in the Settlement Class and will be bound by the
terms and conditions of the Settlement. If you are a member of the
Consumer Settlement Sub-Class and wish to remain in the Settlement,
you do not need to do anything. The store credit(s) to which you are
entitled were automatically mailed to you. If you are a member of
the Watchmaker Settlement Sub-Class and wish to remain in the
Settlement, you are entitled to apply to become an authorized Cartier
repair shop pursuant to the procedures set forth in the Notice since
the Settlement is finally approved.
As set forth in the Notice, members
of the Settlement Class who did not exclude themselves from the
Settlement by the March 17, 2008 deadline will not be able to pursue
any other lawsuit against Richemont concerning the claims covered by
the Settlement.
Can I object or comment on
the Settlement?
The deadline to object or comment on the Settlement has passed. The deadline was March 17, 2008.
Any person who failed to object in the manner provided in the Notice shall be deemed to have waived the right to object (including any right of appeal) and shall be forever barred from raising such objections in this or any other action or proceeding.
May I make an appearance at
the Settlement Hearing?
The Settlement Hearing was held on May 7, 2008 and the Court granted final approval of the Settlement on July 3, 2008.
May I exclude myself from the
Settlement?
The deadline to exclude yourself from the Settlement Class has passed. The deadline was March 17, 2008.
When is the Settlement
Hearing?
The Settlement Hearing was held on May 7, 2008 in the courtroom of the Honorable Edward M. Chen, Magistrate Judge of the United States District Court for the Northern District of California, 450 Golden Gate Avenue, San Francisco, California 94102, Courtroom C, 15th Floor. On July 3, 2008, the Court approved the Settlement on the terms and conditions provided for in the Amended Stipulation as fair, reasonable and adequate, dismissing the Action with prejudice on the merits and releasing all Released Claims.
The Court granted final approval of the Settlement on July 3, 2008. However, someone filed an appeal. The parties settled the appeal. On December 11, 2008, the appeal was dismissed with prejudice. The Effective Date of the Settlement was December 15, 2008.
What happens now that the Court
has granted final approval of the Settlement?
The Court entered an Order and Final Judgment which, among other things:
- found the Settlement of the Action on the terms and conditions provided for in the Amended Stipulation of Settlement to be fair, reasonable, adequate and finally approved it;
- certified the Settlement Class for the purposes of settlement only and found that the Settlement Class Representatives and Settlement Class Counsel have adequately represented the interests of the Settlement Class with respect to the Action and the claims asserted therein;
- entered judgment pursuant to the Amended Stipulation of Settlement, among other things, dismissing the Action with prejudice; and
- barred Plaintiffs and all members of the Final Settlement Class from asserting, commencing, prosecuting or continuing, either directly, indirectly, individually, representatively, or in any other capacity, any claim based, in whole or part, upon any of the Released Claims against any of the Released Parties.
Where can I get more
information about the case?
The Notice contains only a summary of the terms of the Settlement. For a more detailed statement of the matters involved in these proceedings, you may refer to the Amended Stipulation of Settlement and the other papers on file with the Court in the Action.
IF YOU HAVE ANY QUESTIONS, PLEASE MAKE ALL INQUIRIES TO:
Bruce L. Simon, Esq.
Pearson, Simon, Soter, Warshaw & Penny, LLP
44 Montgomery Street
Suite 1430
San Francisco, CA 94104
PLEASE DO NOT WRITE OR CALL THE COURT DIRECTLY.