Plan of Administration and Distribution

www.dshslawsuit.com
FILED
SUPERIOR COURT
THURSTON COUfffY. WA
2015 JAN 21 PM 4: 24
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EXPEDITE
No hearing set
Hearing is set
Hearing Date: January 30, 2015; 9:00 a.m.
Honorabie Erik D. Price
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SUPERIOR COURT OF THE STATE OF WASHINGTON
PQRTPTfR"IT{)l\Jf'OUJNTV
-
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v.
NATASHA PFAFF,
Plaintiff,
v.
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[Proposed]
Defendants/Respondents.
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STATE OF WASHINGTON,
DEPARTMENT OF SOCIAL AND
HEALTH SERVICES, et al.,
Defendants.
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SERVICE EMPLOYEES
INTERNATIONAL UNION 775, et al.,
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Plaintiffs,
v.
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-
PLAN OF ADMINISTRATION AND
J:)ISTRIBUTION
STATE OF WASHINGTON,
DEPARTMENT OF SOCIAL AND
HEALTH SERVICES, et al.,
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- ,_,E''ID'",
RO"PO\,,;h
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~..,
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CASE NO. 07-2-00895-8
Plaintiffs!Petitioners,
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•• -
LEYA REK.L.JTER, et al.,
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--ClU--~. ~·. ~
ROBIN ARNOLD-WILLIAMS, et al.,
Defendants.
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LIVENGOODALSKOG
PLAN OF ADMINISTRATION AND DISTRIBUTION -
I of 8
121 THIRD AVENUE
P.O.BOX908
KIRKLAND. WASHINGTON 98083-0908
PHO?-.'E: (425) .822-9281 FAX; (425-828-0908
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www.dshslawsuit.com
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PLAN OF ADMINISTRATION AND DISTRIBUTION
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1.
Genera! Definitions. As used in this Plan of Administration and Distribution
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(the "Distribution Plan"), the following terms shall have the indicated meanings:
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(a)
"Action" means the above-captioned class action lawsuit.
(b)
"Administration
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Expenses"
means
expenses
associated
with
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administering the Class Judgment Fund, including, but not limited to the expenses outlined in
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Exhibit A to this Distribution Plan, and any payments and expenses incurred in connection
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wiih taxation matters relating to the Class Judgment Fund and Distribution Plan.
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(c)
"Claims Administrator" means Gilardi & Co., LLC, or any other person
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or entity approved by the Court, as set forth in the Distribution Plan.
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(d)
"Class" means the Provider Class a.'ld judgment creditors in whose
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favor the Court entered a final money judgment in this Action.
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(e)
· "Class Counsel" means Pfau Cochran Vertetis Arnala, PLLC, and
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Livengood Alskog, PLLC.
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(f)
"Class Member" means any natural person or entity wit..l:lin the
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definition of the Class who is not a Class Opt-Out.
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(g)
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"Class Opt-Out" means any natural person or entity falling within the
definition of the Class who timely and validly submitted a request for exclusion from the
Class in accordance with the class notice procedures previously approved by the Court.
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(h)
"Class Judgment Fund" means the designated escrow account into
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which the Partial Payment and/or any and all Future Payments by Defendant are paid.
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(i)
"Court" means the Superior Court for Thurston County, State of
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Washington.
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LIVENGOOD Al.SKOG
PLAN OF ADMINISTRATION AND DISTRIBUTION 2of 8
121 THIRD A VENUE
P.O. BOX908
KIRKLAND, WASHINGTON 98083-0908
rHONE: (425) 822-9281 FAX: (425-828-0908
www.dshslawsuit.com
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G)
"Defendant" means the State of Washing"t.0n, Department of Social and
Health Services.
(k)
"Distribution Plan" means this plan for administration and allocation of
the Class Judgment Fund whereby the Partial Payment and/or any subsequent Future
Payments by Defendant shall be distributed to Class Members after payment of
Administration Expenses, Union Dues, Incentive Awards, Fee and Cost Awards, Third-Party
Claims, and other expenses as may be ordered by the Court.
(l)
"Fee and Cost Award" means the reasonable attorney fees, costs, and
expenses incurred by Class Counsel in the prosecution of this Action and previously awarded
by this Court in its First Amended Supplemental Judgment and Order for Attorney Fees and
Costs Following Mandate, entered on September 5, 2014.
(m)
"Future Payments" means any subsequent payments made by
Defendant in full or partial satisfaction of the judgment, Fee and Cost Awards, and any and all
other fees, costs, and expenses already awarded or to be awarded in this Action.
(n)
"Incentive Award" means the compensation to the Na.med Plaintiffs in
this action for their participation in the litigation previously awarded hy the Court in Second
Amended Jlinal Judgment on Jury Verdict - Provider Class, Following Mandate, entered on
September 5, 2014 in the amount of $25,000 per Named Plaintiff, for a total of $150,000.
(o)
'".Na.med Plaintiffs;; means named plaintiff care provider ciass
representatives in the above-captioned Action.
(p)
"Third-Party Claims" means any amounts ordered by the Court or as
otherwise allowed by law for payment of debts purportedly owed by individual Class
Members to Defendant.
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LIVENGOOD ALSKOG
PLAN OF ADMINISTRATION AND DISTRIBUTION 3 of 8
121 THIRD A VENUE
P.O. BOX908
KIRKLAND, WASHINGTON 98083~0908
PHONEo (425) 822-9281 FAXo (425-828-0908
www.dshslawsuit.com
(q)
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indicated it will make in partial satisfaction of the Second Amended Final Judgment on Jury
Verdict-Provider Class, Following Mandate, dated September 5, 2014.
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(r)
"Shared Living Rule Period" means April 1, 2003 through June 30,
(s)
"Union" means Service Employees International Union 775NW.
(t)
"Union Dues" means the amount of $1,425,000.00 agreed to between
2008.
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"Partial Payment" means the $12,000,000 payment Defendant has
Class Counsel, Named Plaintiffs, Defendant, and the Union as satisfaction for claimed
"percentage-based" dues owed by Class Members to the Union pursuant to the collective
bargaining agreements applicable to the effective dates of the Shared Living Rule.
2.
Creation and Characterization of Partial Payment
(a)
The $12,000,000 Partial Payment by Defendant shall be paid into an
escrow account administered by the Claims Administrator that will constitute the Class
Judgment Fund. A copy of the escrow agreement agreed to by the Claims Administrator,
Class, Defendant and the Union is attached hereto as Exhibit B, which is fully incorporated to
the Distribution Plan by reference. The Claims Administrator shall comply with all tenns and
provisions stated in the escrow agreement.
(b)
All (a) taxes, including any estimated taxes, interest, or penalties,
arising with respect to the income earned by the Ciass Judgment Fund, and (b) expenses and
costs incurred in connection with the operation and implementation of this
if 2
and not
covered as an Administration Expense in Exhibit A, including, without limitation, the
expenses of tax attorneys and/or accountants, shall be paid out oftbe Class Judgment Fund; in
all events, tbe Defendant and its counsel shall have no liability for the taxes or expenses
described in this paragraph. The Class shall indemnify and hold Defendant and its counsel
harmless for the taxes and expenses described in this paragraph, including, without limitation,
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PLAN OF ADMlNISTRATIO)! AND DISTRIBUTION 4 of 8
LIVENGOOD ALSKOG
121 THIRD AVENUE
P.O. BOX 908
KJRKLAND, WASHINGTON 98083-0908
PHONE: (425) 822-9281 FAX: (425-828-0908
www.dshslawsuit.com
taxes payable by reason of ai1y such indemnification. Furt.i\ermo:rc, the taxes and expenses
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described in this paragraph shall be timely paid by the Claims Administrator out of the Class
Judgment Fund without prior order from the Court, and the Claims Administrator shall be
obligated (notwithstanding anything herein to the contrary) to withhold from distribution to
Class Members any funds necessary to pay such amounts, including the establishment of
adequate reserves for any of the taxes or expenses described in this paragraph (as well as any
amounts that may be required to be withheld under Treasury Regulation § l.468B-2(1 )(2));
neither Defendant nor its counsel shall be responsible or have any liability therefor.
Defendant and Class shall cooperate v;.1th the Claims P. .dw.Jnistratcr, each other, a..'1.d a.91y
necessary tax attorneys or accountants to the extent reasonably necessary to carry out the
provisions ofiJ 2.
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3.
shall be distributed as follows:
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(a)
(b)
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$1,425,000.00 shall be paid to the Union for complete satisfaction of
u':.e claimed Union Dues;
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$233,711.00 shall be paid into a trust account for purposes of payment
of Administration Expenses by the Claims Administrator;
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Distribution of Partial Payment. The Partial Payment of $12,000,000.00
(c)
A total of $150,000.00 shall be paid to the N:m;ed Plaintiffs,
$25,000.00 to them each individuaiiy, as the Incentive Awards previously ordered by the
Court;
(d)
Class Counsel shall be paid for all their costs and interest accrued
thereon pursuant to the Fee and Cost Award previously ordered by the Court;
(e)
The remainder shall be paid to Class Counsel as partial satisfaction of
attorney fees approved pursuant to the Fee and Cost Award previously ordered by the Court;
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PLAN OF ADMJN!STRATION AND DIS1RIBUT!ON 5 of 8
LIVENGOOD ALSKOG
121 THIRD AVENUE
P.O. BOX908
KIRKLAND, WASHINGTON 98083-0908:
PHONE: (425) 822-9281 FAX: (425-828·0908
www.dshslawsuit.com
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4.
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(a)
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(b)
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(c)
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Period. The pro rata allocation shall be based upon the Provider Class' computation of the
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harm suffered by the Provider Class and presented at trial. This computation was based upon
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data provided by the Defendant, and, among other things, takes into consideration hours
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worked and varying payment rates during the respective collective bargaining periods. The
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pro rata allocation for each class member shall be determined by talcing the amount computed
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by the Provider Class' expert and proportionately adjusting the amount to the net amount
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available for distribution to class members from the Class Judgment Fund, after deduction of
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court-approved distributions. Distributions may be reduced by third-party clain1s as allowed
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II
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The remainder shall be pro rata distributed to the Class Members based
upon the calculated lost income to the Class Members during the Shared Living Rule
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Any further amounts necessary to satisfy the Fee and Cost Award
previously ordered by the Court shall be paid to Class Counsel;
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Any additional necessary amounts approved by the Court for payment
previously established pursuant to~ 3(a).
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Class Judgment
of Administration Expenses by the Claims Administrator shall be paid into the trust account
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tJ1e
Fund shall be distributed as follows:
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Distribution of Future Payments. Future Payments into
by law. The spreadsheet results of the final pro rata allocation performed by Bemston Porter
shall be made avaiiabie to Defendant. By way of example oniy:
if the total amount to distribute to class members was $1,000 and there were three total
class members who were calculated to be owed $3,000 (Member A), $2,000 (Member
B) and $5,000 (Member C) during the Shared Living Rule Period and a $100 ThirdParty Claim applied to Member C, then their compensation would be determined by
taking the amount of their calculated compensation, dividing by the total of all
calculated compensation, and multiplying that amount by the total amount to distribute
and subtracting any Third-Party Claims. Compensation to Member A = [($3,000
calculated) l ($10,000 total)] x $1,000 = $300; Compensation to Member B = [($2,000
calculated) j ($10,000 total)] x $1,000 = $200; Compensation to Member C = [(($5,000
calculated) 1 ($10,000 total)] x $1,000)] - $100 Third-Party Claim= $400. The $100
PLAN OF ADMJNISTRATION AND DlSTR!BUTlON.6 of 8
LIVENGOOD AI.SKOG
121 THJRD AVENUE
P.O. BOX908
KJRKLAND, WASHINGTON 98083-0908
PHONE; (425) 822·9281 FAX: (425-828-0908
www.dshslawsuit.com
reduction for the Third-Party Claim would later be distributed pursuant to the ThirdParty Claim requirement as specified by law.
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(d)
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Distribution efforts to the Class Members shall commence once the
total remaining amount of the judgments entered against Defendant in tlus action are paid into
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the Class Judgment Fund or as otherwise directed by the Court. The distribution efforts shall
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include the Claims Administrator delivering via first-class mail a check to each Class
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Member's last-known address for 1.he Class Member's pro rata share of the Class fodgment
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Fund. The distribution efforts shall also include implementation of the notice procedures,
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including publication of notice in print media and targeted internet notice campaign, as
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outlined in Exhibit A to this Distribution Plan;
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(e)
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If any Class Member fails to cash his or her check within 60 days, the
Claims Administrator shall send a reminder letter to each such Class Member to advise such
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Class Members to cash the check and inform them of the procedure for requesting a
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reissuance of his or her check if they did not receive it. The Claims Administrator shall also
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perform "skip traces" on all checks returned as undeliverable, and shall issue a new check if
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the skip trace provides a more current address. After 180 days, the Claims Administrator
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" shaii send an uncashed check reminder postcard to Class Members who have not cashed 1heir
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checks, advising them to cash their checks and inform them of the procedure for requesting a
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reissuance of his or her check if they did not receive it. After the check void date, the Claims
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Administrator shall perform a skip trace on all uncashed checks. The Claims Administrator
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shall then send a letter to each Class Member whose skip trace provided a more current
address advising such Class Members on the procedure for requesting a reissuance of his or
her check.
(f)
After exhaustion of the distribution efforts described in
'il'il 4(d)
and
4(e), unclaimed funds shall be retained in the Common Judgment Fund in order to accrue
interest to allow for the Claims Administrator to continue distributing payments and accrued
PLAN OF ADMINISTRATION AND DISTRIBUTION 7 of 8
LIVENGOOD ALSKOG
121 THIRD AVENUE
P.O. BOX908
KIRKLAND, WASHINGTON 9808J..D908
PHONE: (425) 822·9281 FAX: (425-828-0908
www.dshslawsuit.com
interest to unpaid Class Members pursuant to direction from Class Counsel via Order of the
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Court.
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(g)
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Funds remaining in the possession of the Claims Administrator after
the distribution described in 'If 4(c) shall be subject to further order of this Court.
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DATED this 21st day of January, 2015
PFAU COCH.~AN VERTETIS
AMALA, PLLC
J
rl)~( L. l:::,c.,£.,~fJJf
'i?ai;rell L. Cochran, WSBA No. 22851
Michael T. Pfau, WSBA No. 24649
Class Counsel
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PLAN OF ADMINISTRATION AND DISTRIBUTION 8 of 8
LIVENGOOD ALSKOG
121 THIRD AVENUE
P.O. BOX908
KJRKLAND, WASHINGTON 98083-0908
PHONE: (425) 822-9281 FAX: (425-828-0908
www.dshslawsuit.com
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EXHIBIT}}._
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Gilardi & Co., LLc Estimate
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www.dshslawsuit.com
Dlm)ll C»i;:hr-.ct
PfJl\I Ccc.hnln Vertet\B;A.maiaAtlQfllW~ <rt law
Matter. Ra~hterv. Washlrigton Dept. of Social and Health SAOrvic:et
ADMINISTRA'llOK ESTIMATE SUMMARY
FULLADllllNlSlRATION WITH CLAIMS PROCESSING AND DISTRIBUTION SERVICES
KOY ASSUMPPO!W
1-13!.tlmaled cJags !1mof20.46f.I Provider..
2 - Ne!:lce Paekat wi!l lMl:Jde 4··1)tl:ge: flloticc .;i.~ 1-pagic Caver Lmt.f}r/Che:l!engo Femi
3 - r>efehdoont ...,11 pro\1'!00 S~la£ seeurJly Nurnbbni
'\ - TcJJ..free number 1Ml:h r-.1P; ;;ir.d d.o~-ar tri llve opar:uor s.u.ppon:
n- lr.U:rattive case-dedicated ..wbAJ16 Vtflh onTine dispule procest
6 - settlement;~ wll[ be tli:strlbuled 'Mth tux forrns (W-2) iA a -aingi& diBtrlbuti:Jn
7 - lklcha.shed Clteck Reminder Poi>tcard mailed 10 Class Metnbe!-$ \lith uncashed checks af"ier 180 day:;
B - Setllement fund reportrng will be required for Ol'lli! ye;:r
G- Ro~kfusl fund& to be disbursed '*'- dtrecled In tlla illdgt'nQnt
CLASS
S'"@i
Tot.I E.&tlmnted Cla&:i; Size
20.468
FiU09 Ptl':SfdAAit; 1glrl T!hrmbgt q!QJil\Ma f!l\\d
o.s%
102
SERViC:ESj
NQUlicatbn Procedure.
ProcessfigfRepo~
Dl:itrbution
Notice Program
Oemage Expert
Gllardl Coordination 'Mlh Damige Expen.
Total estlM&btdAdmlnl11o1ratlon Costs
$
77,1'19
20,384
80,706
30,000
20.000
;,ooo
$ 233t71,!...
www.dshslawsuit.com
Darel.I Cochr.art
Piau Cochran Vertetis- Am.JI¥ .Attorne)'!J. et i..flY
MaftQJ': RekhfllT v. Wasl1!rigton Oept. .of Socl11l-11nd Haftti S&rvfl::m;
Page~
of S '!;If Coot Estimate .Spn;imd~~
&UMMARY OF G!LARDI SERVICES AND THIRD PARTY EXPENSES
0.6~
GILARD! SERVICES:
Caee Stililp
102
$
000
1.35tl
MaJl!ng Datl!OOBe i'repatation
Software Ct.1&!om!raUon
""°
000
Documeril Fcrma!:LY:ig
C8&&U~rn
13,~
...
Jnvoougat:JWI: worn L<x:atll')Q CJ;tmru'lta
9,000
Print Produc:lk>n Slaff HoUI"$
RUM ScftMlng
'I,OBO
Addi'&H Selrohu
Telophcno Support
640
24,840
PrOCl!!lli.!oir'91 ad Reporikig
SSN Validation
2Q,(!84
1.120
OistribuHon
7200
St1btoial Gilard S~
s es 22s
1
111
CASE BELATED §XPENBE§·
NCOA
Prlntfng Initial Notice Po!tcarchi
Domeatc First Ctaa.s Po&tag~
Addrells Searches.
Te!ephane Support:Settip
Notice PaeJcet ReQUG$1: Fulfllinent
$
2!;Q
9,C!OO
7,796
5,418
4,9S7
212
15(;
2,037
Domeete First Ctau Pc"1aae
Prhll~!*'O f"onn W-9
CheO!< Prl!\Ung
25,457
Domeatlc fll'Gt Cliiih Po&laij:W
7,759
PrfntinQ Unchashed Chec:lt RemITTder Postcard
2,315
1,534
ri,652
P:;rnE>$.tic Fnt Class Pos!Bge
Dea.ii Ragiairy Saarones
lssi..-e Tax Fonns
15,274
•.llSO
Tax Repcrtfng
Residual Ftmd Slllf\'ices
Web>rto O.vol-eot
Subtotal Expenses
900
MOO
$ es14as
K9J!CE PROGRAM•
Print Publtcsuon
17,800
PBkl O!l!itli"A.tNeniilTig
~D,400
1,aoc
Pres.SR~
Subtotal P11tillca1lcn
$
301Ca1J
$
:w.ooo
$
25.000
DAMAGE EXPERT;
Dem age Expert Doug McDsn\erz. Servicer> tar ca1ct11B1.1or.11
GUardi CoordinRfion v.i1h llsmaee Expert
Subtotal tnimage Qpert
Tot.I Eatlmated Admlnlslratlon F..s:
oOOO
$233,711
www.dshslawsuit.com
JtJJy 24, 2014
~
OM!ll Coehn.11
Pfau OPChni:n Vartetts Amal• AUom~ nt Law
Metter. Rekhterv. ~J111hTngf:an Dept. of Bocia! iind H~!l:tl S11:rvit::Sl'I'
Poi;ge 21 of$ of Cost f...i;(lmate Spreadshea1
NOTIFICATION PROCEDURES
Unit Rato
NOTIFICATION PROCEDURE§
Volt.1me
Total
Cost
Doc:ument Formatting: & Clal8 Data P.m]MU'e.tion
case Setup
Malling Dllilbese Prepmtfon
$
Software cuetom!zatJon
Oo~nl FDmlatting
Ca!I Mwiagemt!lnt
ll'lvti61i~ Woric localing Claimants
NCOA
Subtat::a:I Formettfng & Data Prep
$
$
$
90.00
$
90.00
*
90.00
M.OD
10
~
900
15
!::":::
~
9M~
1!l
mi
t35no
w.i
50.IJG
10
11."S
15{) . .
100 ht:.
19-,500
9.000
BOO
250
21),00~
~
~rtmrn;~,.;:1;"i
Notloo J:'e.~
$
O.i14
:Z0.456
$
$
!Ll!B1
2D.46ll
9.00•
$
4-paga Notice. 1:-fllil,ge Cc'1it,it LelWIChelkmQEI Fmm, #10 en'I, fG: BRM env
Domestic- Fhi:t Class PC$'19Qe
Print Production s faff Hourt
sub!.WJ Pmtfn~amng
00.00
7,798
900
10 ...
17,7C>\
RBtul'Md Vnde!lverab)e- Mal:I HarsdJing {1':flUM'")
Totll % & #Of RUM Picr...eti
RUM Scanning
$
0.10
6,117
5,117
$
512
$
0.25
5,117
$
1,279
25%
612
Addro$9 kcr-oh Servicn (Skip-Tracing}
#of Sea~ {from RUM Bbtl'Ye)
Ci&ss Lm cootaln-s. SSNl? (YIN)
#Of New Adcirea'Bes Foond. and Rom.ell
Domestic Ffr!t Claes Postage
Sfaff Hours perf:ormfngAddrSeamhea & ~-M2!Us
SiJbtotal Acldrast $earche$
y
90%
0.52
4.61)5
;
2.384
0.381
4,805
1,755
$
90.0D
$
....
540
5,951l
i (lfi"..(ree T ejephcNHI Supi:;;Di1
One.Time Setup
JVR Sc:ipt Davek>pmMt.
P~miOIJ
& 'resllng
$
$
~onthly LJn6' Charges
ES'Jmate1j Totat Cli.TI vm.ime
Averet,;e Minutes Per Cell {!VR)
Total Eztimutcd IVA. Mhute Charges
"""'
Erimsl:Qd % oou # rir LI~ Operatr;Jr Tr.m5fcrs
50%
l't,lotice. P:aekErl
Notit:e Packet Raqum.t Fulfillment
Dome:slli:: Flrat CJeu JlOMO.ge
SJ;blot.td Jekl'pttane S>.:pport
5 ....
12 ""'
'
1,500
450
1.000
4,Clflt
4
$
0.10
1S,~4 rri:n
1.S37
2,047
5
Al/E!fa{le Mmutes Psr esn (UYe)
staff HOUIS Pro'Wf~g U\'e Phone SUpport
~limated % and# of GaUan: Requeitn~
SIOJ:>O
1:50.00
$
90.00
171
•09
15,390
$
$
0.52
.409
212
0.381
~·9
156
10%
21,145
Wetislte Cew~klpment
il!te~
!rllse--dedleilE:d M;:b$ite 'Mtn oonne dl:sput:e Pl"~
.Subtotal NDllflcl:tlon Procedu~
$
5,000
5 000
$
77.119
www.dshslawsuit.com
tlaren Cochran
Pinu Coclu~n Vertdltl Am ala A.'tl.otneys at Law
MatMr: Rekliter v. WMftlngton Dept. of Soolel and Health Sl!lrv!c&e
Page 4 of 6 of Cost Eeth'M.te Spresdsheet
CLAIMS PROC!'.SS!NG AND OISTRIBl!TION
fr:?ltct!!I' E91fI11 f}&!rl
('h tl'ld .. d F'(IC"lm)
PR~G
Olsp:IJWO!Mlkllge ProQn:Sfng (COl!lt potl"<i:~llitnel'I '/1¥ nifllll:t roundl!Jll)
Co!\Jl*l' ~1'11' \:!)»!It atariwa-F\ll:ii!.~11 Mm!
ea.t per ~ ftll" up kl :117 Chldio.ngVIO 'f"llld Viii WttbWl;ll
E81tnlled rurbef« FM'l'll "filtd thru W~M
~?Uliw.tt~'l\IM~PMl:t!Ud.
BRM s~ Chal'Qfi
Pracusllng Probltt DiSpll*
Stidt'Mmwooutt'Q~~
Rt'J)<lrth!W0-iik1.tlarl
tlt11fftl>intltll'l:lil'lg addrm~ L.¢;a!M
S~tXllRiOl"~d~~
tl1'Clita1loi\dNQtlce.Pl'DCllel!a'tll
~.llPC!fiiv:-Amme11: 1:11'. per WtlelC
Subkltal P~~rftng
UnltR.alt.
....
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""!lei!
$0.75
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•
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8 k•
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10 tr11
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73
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720
'~·
720
llOO
•
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~
P'fau Cochran V$fstls Amala Atfotrlir/S .tJt Law
MJtU!r: ~U!I' v. WashEngton Oe~ of Soe!e:• ancl HtaTth SIH'Yk9$
Page 5 of 5 of CO!ill Estimate Spreadsheet
I:.
CLAIMS PROCESSING ANP OISTl<IBUTION {cont.}
"',·"", I
•• '"''
I
oomugmpN
Unh
~Fmlll~l'f»'l(lnd.~Tib::ll:i)
bimtl!UtM Oablllf:9ma
[$trlll'.fmi PrepQ~
6!J:im!t Cf.lknliol )l'Mil:I SSAiOI" ~mctTIN Mlmu1tdJ
~%1111dlllcf'-"~
~I !KS f"Drm! W<9 rtr M:srnatd\H
~J'O(;Qn: Fomls W-9 ~ tiy CIU'lait:s
"""""""....
lsa!Je.(:i:ackl;
1Slll.lelRSFDrm!l.W-2
DcrttKlli: FlmtC~ FO'~
RA~
.
•
$
•
MS1
I
I
t
Rom/11dtir~ll'~~~~t:t.0~
t
Doml!Stlcifk'UOFll!lg~
?11111 Prtd.dkln sma- HoLn
""'
,...,
2!117
lS,457
16,274
7,7.5.9
~
"""" u
-·~
t
iJ11allrihfld11fklr1BO~
RHbmt~p~
1.000
1,1:118 •11
1Ei flra
2(),'2'66
l>)<l
z;oo
1,015
2ll0
~nblldl FNIJritl(lff'~
£9tlmallld% 1111dil!afCiefsS MolJ1J1eNWilh an::mhr..c;I d!iKt.si
....
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•••
Coot
iO ~ ... $
•• ""·"' II
I:
I
""
...
,.
'
90.00
5%
\foll.\'!!tl'
.S,1.1t)
5.110
...
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• ,.,
•
.
D.251
.,;i·
~31.&
5.110 ..
,.,
'·""
100
'·""'
'·""'
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fdlOW-upTC!l=!p!)ortt!oCllUS
TclapJiaooGFJiil.~~~:b~~
Staffhwf$ ~fl;l~~pf\QM QGs
Dsa:Oi
~ S..rdl
Sellrch or dldl 1toQbeyfcT CtMt Memtlln 'WIVl ~di ctwck1
Jb:lpoOW-21~itl
rRS
sotllament.Flirid Tat R•parllftl
Relki.RllF~M S~
stclftloe ~ ~-k nHISl!M
RM~'"'G1g~:1
&.ublatal DlatrlbutlOn
"'·""
' . ,.
•
•
•; ,..,
~
;:!~1).00
I :Z,&00.DQ
DQl),OQ
!l.'Hltl
I
~!$
G,110 ..
"
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1 "
1 ..
11'J hr.i
1D till
•
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e:2110I
www.dshslawsuit.com
Da.rell Cochran
Pfz.u Cochran Vertetls Amala Attorneys at Law
Matter: Rekht~r v. Washington O•pt. of Social and Health Services
ADMINISTRATION ESTIMATE SUMMARY
FULL ADMINISTRATION WITH CLAIMS PROCESSING ANO DISTRIBUTION SERVICES
KEY ASSUMPTIONS:
1 • Estlmated class size of 20,i.'J6S Providers
2 • Notice Packet will include 4-page Notice and 1-page Cover LettertCnaHenge Form
3 • Defencfanl will provide Social Security Numbers
4 - Toll-free number with IVR and rollover to live Qperator support
5- Interactive- ca$e-dedicated website 'Nith oniine dispute process
6 - Seftlement ewards will be distributed with 1ax forms (W-2) in a single tlistribution
7 - Unchashed Check Reminder Postcard malled
to Class Members with uncashed checks after 180 days
8 - Settlement fund reporting vf.H be required for one year
9- Residual funds to be dlsbu~ed as directed in the Judgment
CLASS SIZE•
Total
E~-timatod
Class Slze
Flllng Percentage and NymberpfClalms Filed
o.s•1o
SERVICE§·
Notliicat\cr. Procedu~es
Processing/Reporting
DistributiOn
Notice Program
Damage Expert
GilaTdi Coordination with Damage Expert
Total Estimated Admlnl~tre.tion Costs
102
$
77,119
20,884
80,708
30,000
20,000
5,000
i 233,711
www.dshslawsuit.com
:1
011reU Cochran
PfatJ Cochran Vertatli: Amala Attorneys at l.s.w
Matter: Rekhtlllr
v. Washington D1tpt. of Social and Heal.tt1. Senrlcos
Page 2 of 5 of Cost Estimate Sp(e;;i.dsheet
SUMMARY OF G!LARO! SERVICES AND THIRD PARTY EJ(PE!!SES
O.!i'k
102
GILARQI SERVICES:
Case Setup
Maillng Da~base Preparation
900
1,350
I
900
Sottware Customization
900
Document Formatting
Case Management
13,500
9,000
1,080
512
540
lnvestJga'!lve Work Locating Claimants
Print Production Staff HQura
RUM Scannin9
Actdres.s Searches
Te!eo:phone Support
2~.840-
Proces&ir.g 1:1nd Reporting
SSN Validation
20,884
1,620
7200
Distribution
$
83!225
s
Address Searches.
250
9,000
7,798
5,418
Telephone Support Setup
4,937
Subtotal Gilardi Services
CASE. RELATED EX.J>l!NSES·
NGOA
Printing Initial Not~ Postcards
Dcmes\ic First. Clool'> Postage
Nonce Packet Req1Jesl Fulfillment
212
156
2.037
25,457
7,759
2,315
1,534
-4,582
1-5,2?4
2,850
900
5,000
oomeSi:ic First Clas& Pcslage
Pr!ntln9[Malllng Forrn Ww9
Check Printing
Domestic. First Class Pos1age
Printing Unchashed Check Remin.der Postcard
Dcmes"tic First Clase. Postage
Dea1h Registry Searches
issue Tax Forms
T2K Reporting
Residual Fund Services
Web$il.e Development
Subtotal E)(pensas
$
95486
NOTICE DRQGRAM·
17,BOD
10,400
Print Pubrtcation
Paid OnJine Advertisin!J
Press Release
Subtol.BI Publlca:Uon
1 BOO
$
$(}1{3:01J
Damage Expert Doug McDaniel'~ Services for Calculations
G!lardi Coordination with Damage Expert
$
20,000
5000
Subtcta~
$
25,000
DA.MAGE EXPEf~.T:
Damage E.;cpert
Total Estimated Admiralstratlon Fees:
$233,711
www.dshslawsuit.com
Jury u, 20;4
~
Darell Cochran
PJau Cochran Verttitl!ii An'l~a Attorneys ill Law
Matter: Rekht&r v. Wa&hlngton Dept. of Socfal l!lttd Hoalth Service&
Page 3 of 5 of Cost Estimate Spreadsheet
u,c
NOTIFICATION PROCEDURES
NOTIFICATION PROCEDURES
Un!t Rate
varurru~
Cost
TObll
Ooc:ument Formatting & Class lltita Ptoeparation
Case Setup
Mailing Database Pr&parallon
Software Customization
Documeot FormatUng
case Management
$
90.00
90.00
$
$
91),{l{J
91101)
$
ll0.00
90.00
•
•
ln'Yestigative Wo~ Locating Claimants
NCOA
10
15
10 h•
10
150
100
""
,,,.
$
""
""'
""
900
1,350
900
900
13,500
9,000
25"
Subtotal Formatting & Data Prep
$
26,900
Pri11t\ng!Me.1\ing
Notice P.acket:
4-page Notice, 1-page Cover Letter/Challenge Form, #10 env, #9 BRM env
Domes'tic Ftrs1 Class Pos.tage
Print Prodl>Ction Staff HOE.Jrs
Subtotal Printing/Mailing
•
•
$
0.44
?0,o:t.SS
0.381
20,468
10
90,DO
$
9,006
7,798
900
t>r&
17,704
Retumed Undeliverahlll'I Ma.II io!andling ("RUMK)
Tela! % & # of RUM
RUM Seannlng
P:C~
25%
s
0.10
5,117
5,117
$
512
$
0.25
5,117
$
1,279
s
s
0.52
0.381
90.00
4,605
4,605
512
Address Se~rc.h Services (Sktp·Tra(;ln[J)
#of seal'Che& ttrom RUM abo>Je)
ClaiS List Con'tains SSNs? (YIN)
#Of New Addresses Found and Remail
Domestic First Class Postage
Staff Hours performing Addr Searches & Re-Mails
Subtotal Address Searches
y
90%
s
2,384
1,755
540
B 11rs
!;),958
Toll-free Telephone 8u?pvit
One-lime setup
s
!VR Script Development, Programming 8. Testing
Monthly Line Charges
Estimated Tot.al Cali Volume
i'\verage Minutes Per C&il (WR)
Total Estimated IVR Min:Jte Charges
~:;;timate<l
'% and# of Live Operator Transfers
$
$
O:iO
20%
$
10%
5 hr$
12
4,094
4
16,374
=·
,.,
i,500
450
1,800
1,637
2,047
50%
Average Minutes Per Call (Live)
Slaff Hours Providing Llve Phone Support
Estlmated % and# of Callers R!!'lquesting Notice Packet
Nol1ce Packet Request Fulrillment
Domestic Finrt Class Postage
Subtotal TelEiiphona SupPQrt
$
90.00
150.00
s
s
•
90.00
171
15,390
0.52
0.381
409
409
409
212
156
21,145
Websif.& Development
ln!.eractive case-dedlo<tted website with anline dispute process
Subtotal Notification Procedures
s
5000
5000
$
77,119
www.dshslawsuit.com
OE>ii!ll Cv\:hraii
Pfa\I Coc.hral) Vert.ells Am1:11a Attorney$ i't law
Matter: R:ekhter v. W~!iihington Dri!pt. cf Social anti Health Se.vie[$
Page 4 of 5 of Cost E~tlmate. Spreadsheet
CLAIMS PROCESSING AND DISTRIBUTION
Prn!f!clfd Fonm1 Filed
{%and# r:;if Forrm)
Unit Rat~
Dl'ipule/CIM.lhmiJe Proo::Ks.ln.1r<cos.1 pat chalking• fl•
$3.50
CostperChaiengefOI' up tc 9T Chaienge! F~eti via Wecslte
$0.76
eslimat.eQ'. Nt1mbert)ffollm "filed lhru Website
'5%
1;$tim11!ed Ntmbercfforms nl&d by PcMal Mail
'%
Proc6-lt11ng Pm~lll 'Piir>ubf•
Sl:a.l"fhO;TS PfVCe&Sing
~IOUil\& t.it1)>Ui.$1i
RcpcrtlnOl'Deefa13llon
Stalf tmur.!: liand'ng ~ress ~a!QQ:
Sta.ff ho Lilli ttll' QliilliH1ill cia'inant oori-a1;ponderice
Decl!lrat!ooofNolb Pmcer;lll"eS
Repol11ng: - Assi..rn&S 1x !'!er wee)!;
Subtoti.I Proc°"1~pol"ling
O.!i6f.
rnt!m:t roomnng}
Cos.t par mu~e for L!Jl tc 5 Ctlllllenqcs Fiid Via Mml
BRM Service Charges
i02:
•
•
'•
••
., •
'-"
90.00
00.00
w.oo
...00
90.00
73
'IS
3
200 tn.
18,00G
.
'
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""'
no
'·~
""
720
10 .....
900
$
201'&84
www.dshslawsuit.com
Oa;all Cvr:hra11
Pfau Cochran Vertetis Amala Attor11eys at Law
M,;atblr; Rekhter v. Washlt191:o.n Oapt, of Social and H.ealth Se.rvlces
Page 5 of 5 of Cos1 Estimate Spread$heet
~
CLAIMS PROCESSING AND DISTRlBUTION (cont.)
llnltRah
DISTPJBlmOlil
Satt!emanl: Ft.."\lf ~oot (Ind. ab\l!i!'l!ng T:nx lD)
01.S:frlbl.J!!jlfl ~k:\.l'.f!tions
Dl.strlbU11on Prepar=ttion
Submit Claim~ Info
to SSA(or Namo/TlN Millmatdl
Estimall.ld % 1111d# or M"1Una1Ches
Pri~U IRS Forms W-9 fnf Mluna!ch8!.
Proee.1s Form9 W-ri R~tl by Clai'nanls
••
•
... •
••
Volume
Co<t
SO.DO
'!.O
""·"°
90.00
30 "'
00.00
"'
!oa
..
• '"'
2.7CO
1,BOO
:170
3 "
1,01B
2.00
1,018
90.0I)
15 ""
0.75
20,365 ...
Z0,365 Ull
Z0,3G6- a;i
Cfltict.. PrliitRatco
2,037
o;
1.3'0
""
l~ue Check5
Issue !RS Forms W-2
Domestic. Fk'IZI ClaS* POIJt.agi:i
•'
0.3et
.25,o!S7
15,274
1,1S9
Ur!dtl'.!!lbtl<:! Chee!!: Reml:ider Postt;;J.rd
Rem/tldi( Pcsk:erG to Cle;ss Memf>m~ wtm..~~ ra111e/n$
uncashed atrar 180 C'ays
E~msted 'lli and# of Class Members with ooca"..hed ch&ckl
Remilder poslcanl piirting
Dcmesti'.: Fl"sl. ClllE& POs\a!Je
Pzlnt Produciion Slzlff HolK'S
"'" ss
s
s,110
6.1111
•n
0.251
00.00
6,HO
fill
Follow-up TelephOl'llll calls
Ta/opilOM et!fl~rtlminrjing C/85$ ~flllHlrs fo C<J$h
Doath Reais.tcy Sean:ih
Se11rd1 crf M11!h regl10~ for Class Mer.lb ens v.ith U'1Gastied chect8
lRS
Setllemenl Flllr:I T~ RePQnlr.Q
Rr.~!dual
FISY.I. Servicea
.St!Jff H''l'Jrs !-'.a.~lf.lll Chedi:ftc.-!2~t.::a.S
Hri11f Accounting SeWb?$
Subt!llal
~!ributiwa
2,315
1,534
""
""
100 h,,,
0.000
(lfi~
Sl;<lfl" hO\t'i mllkhg folDV1M.~ phone cal)!;
~port w~Z lrd"omtalio.n t¢
.
0.38
• "'·""
'
{).75
,,
900.00
1 ,,
1 ••
's 2,sro.00
•
•
'·"'
6,110""
300.00
350
2.5(10
900
,,.,
·R~
00,00
10
90.0D
~°' ~ri
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•
807MI
www.dshslawsuit.com
1
2
3
4
5
EXHIBITB
6
Escrow Agreement
7
8
9
lO
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
www.dshslawsuit.com
ESCROW AGREFMENT
THIS ESCROW AGREEMENT is effective on the date fully e)(ecuted below, by and
among: (J) Gilardi & C<l. LLC ("Escrow Agent"); (2) plaintiffs Leya Rekhter, eial., individually
and mi I>ehaif of the Class Members ("Class Plaintiffs"); (3) Service Employees International
Union 775 ("SE!U 775NW"); and (4) d"fendants State of Washington, Department of Social &
Health Services, et al. (collectively, the "Parties"). T'nis Escrow Agreement sets fonh the tenns
and comliticms of the escrow to be established pursuant to the Judgment! in Thurston County
Superior C<>urt, Cause No. 07-2-00895-8 (the "Action").
A.
TERMS AND CONDITION~
I.
Defendants and Pfaintifil appoint the Escrow Agent to act aa the escrow agent on
the renns and conditions set forth herein. The Escrow Agent accepts such appointment on such
terms and conditions.
2.
Defendants s.1-rnJI deliver to the Escrow Agent the payments required by the
Judgmenta. Trie payments must be made in immcdieteiy available United States funds, punr~!Wt
to 1he fullowing electronic funds transfer (EFT) instructions:
Bank:
Bank ofthe West
2527 Camino Ramon
Sl!l'.l Ramon, CA 94583
Attn: Terry Wes'
1-800-676-4549
Routing#:
121100782
Aocotillt number:
Account name:
036-4IS44S
Taxpayer ID#:
Attention:
3.
Rekhter et al. v. Washington DSf!S et al. Qualified
Settlement Fund
47-2567375
Lata McDermott, Gilatdi & Co. LLC
Tue Escrow Agent shall promptly confirm receipt of funds in writing to eouosol
for tb.e Parties. The payments, interest, invesllnont income, and an <l1her am<lul!ts on deposit in
Pagel ofl\l
www.dshslawsuit.com
the Escrow Account nre collectively refuired to as Ille ''&crow Funds."
4.
The Escrow Funds shall be invcsced and reirrvested in short tenn United States
Agency or Treasury secmities backed by the full faith and credit of !he United States
Government or in money marker iimds whose portfolio is composed of United States Agency or
Treaswy ~ecurities, which are backed by full faith and credit of the United States Government.
S.
The Escrow Agent may maintain a checking account or money market account at
a federaliy-insured national bank in order to meet re.,..sooably anticipated cash distributions
pursuant to the terms specified herein. All income and profits on such iu:counts shall be credited
to the Escrow Funds. The Escrow Agent shall have the authority to close such accoums from
time to time as ir deems appropriate.
6.
Any losses realized by investment of Escrow Funds or any partion thereof ~hall
be chaxged to the Escrow Funds.
7.
This Escrow Agreement, the Escrow Account, and the Escrow Funds are subject
to the supervisio11., contro~ and continuing jurisdiction of State of Washington, Thurston County
Supedor Court, Cause No. 07-2-00895-8.
8.
The Escrow Agent shall disburse the Escrow Funds plll'Sllant to a final order from
the Court approving a clairru administration and disbursement plan (the "Distribution Plan")
affecting administration and distribution to the class, or as otherwise required by law or directed
by coun order.
9.
The Escrow Account shall be a "Qualilfoo Settlement Fund" within the meaning
of Treasury Regulation Section l.4688-1, and the Parties and the Escrow Agent agree to treat the
Escrow Account as being at all times a "Qualified Settlement Fund." The Escrow Agent shall
timely moke such elections, file such returns an& talce all other actions as are necessary (i) to
Page 2 oflO
www.dshslawsuit.com
compiy with and satisfy the requirements of Section 468B of the futernal Revenue Code of 1986,
as amended ("IRC"), and Treasury Regulation Sectic.ll• l .468B·l through I .46SB-5, M.d (ii) to
ensure lhat the Escrow Account constituteS and is treated as a "Qualuli'd Settlement Fund." Tlw
Escrow Agent agrees io make the "relation-back eiecifon" (as defined in Ti:easury Regulation
Section I .468B-l) back 10 the earliest permitted date. The elections and o1her actions referenced
in this paragraph shall be made in compliance wi1h the procedures and requirements contained in
Treasury Regulation Sections i.468B·l through L468B·5. ForputJJosos of!RC Section468B
and the regulations promulgated thereunder, the "admlnistraror' shall be the &Prow Agent. The
Escrow Agent shall obtain an "employer identification number" for the Escrow ACC<JUnt and
shall timely imd properly file all information aoo other tax returns noc•.s•lllY c>r advisable with
respect to the Escrow ACC<Junt (including, without limitation, the returns described in Treasuzy
Regulation Sections l .4l'.i8B-2(k) and (1). All such rerums (•swell as the elections, shall reflect
that all taxes, ioolnding any interest or penalties) arising with respect to the income earned by 1he
Escrow Account shall be paid out of1he Escrow Funds. The Escrow Agent shall prepare and
deliver, timely and properly, the necessary documentation for signature by all necessary parties
and thereafter shall cause the appropriate elections and filings to occur.
J0.
The Escrow Agent shall be responsible for timely paying out of the interest
earned on the Escrow Acco1m~ as and when legally 1equired, all federal or state income taxes
("I rums") and the expv-nses and cos'.s incurred in cor;oection with the preparation and filing of
tax returns ("Tax Expcoscs"), including interest and penalties, and shall indemnify and held the
Parties harmless for Taxes and Tax Expenses (including, wilhout !imitation, tlllles p•yable by
reason of any such indemnification). Tue Escrow Agent shall be obligated (notwithstanding
anything herein to the contrary) to withhold from distnbution to any person or entity any funds
Page3 oflO
www.dshslawsuit.com
necessary to pay Taxes and Tax Expenses (as well aa any amounts that 111l!Y ho: required to be
withheld under Troasury Regulirtion Section I .468B·:l.(I )(2)) and to csiablish adequate merves
for any such Taxes and Tax Expenses. The Defendants are not responsible fur and shall have nt>
liability for any costs and expense!l described herein. The parties hereto agree to cooperate with
the Escrow Agent, each other, and their tu attorneys and accountant:; to tbe ex.tent reasonably
nccesBal)' to carry out the provisions of Paragraph 9 and this Paragrnph IO.
Il,
The P!aintiffa aud Pefendan1s warrant 10 l!lld agree. wi1h Escrow Agent that
(a)
They have not granted to a third party a security interest, as defined irt the
Uniform Comm.mial Code, in the Escrow Funds or rmy part of Ille Escrow Funds;
(b)
They have not filed or authorized the fUing of a financing statement under
t.0.e Uniform Commercial Code in any jurisdiction claiming a security inrorcst in or descn'bing,
whether speclftcally or generally, the Escr()W Funds or any part of the Escrow Flll1rls; and
(c)
The Escrow Agent shall have no responsibility tn ascertain if ony security
interest exists in the Escrow Funds or any part oi the Escrnw Funds or to file any financing
statement under the Uniform Crunmercial Code of any jurisdiction wilh respect to the Escrow
Funds or any part !hereof.
12,
Nothing in this Escrow Agreement shall be read as hnpC>Sing llllY payment
obligations on Defeadanls beyond what is provided in lhe Judgments,
13.
Tlle Escrow Age111 shall <lisburse funds as needed for:
(a)
Payment of any 1axes or estimated taxes that become due on income
earned by the Escrow Funds, as determined by the Escrow Agent;
(b)
Payment of dues and fees to SElU775NW as agreed by the parties and
approved by the Court in the Action; and
Page4 of!O
www.dshslawsuit.com
(c)
As-01herwise allowed by a final order of the Court approving the
Dis1r1"bution Plon affecting distribution to the class, or as otherwise required by law or odirected
by court order.
B.
PROVISIONS AS TO ESCROW AGENT
1.
This Escrow Agreement tl'.pressly ond exclusively .sets forth tbc duties of !he
Escrow Agent. No implied duties or obligations shall be read into this ES(:row A.grecment
against the Escrow Agent.
2.
This Escrow Agreement constitu1es the entire agreement between the Escrow
Agent and the Parties. Unless it is signed by the Escrow Agent as a party, no other escrow
agreement entered into between the Parties shall be considered as adopted by or binding upon the
Escrow Agent, even if such other escrow agreement is deposited with Ille Escrow Agenl or the
Escrow Agent has !mowledge thereof.
3,
The Escrow Agent U. not be respmlSible for, nor shall it be the duty of 1he Escrow
A.gent, to notify any party interested in this Escrow Agtetment cf any payment reqcimd ol'
maturity OCClllTin& lUlder this Escrow Agreement orimder the terms of any instrument deposited
herewith, unless explicitly µrovided for in this Escrow Agreement
4.
The Escrow Agent shall be protected in acting upon any document which the
Escrow Agent, after reasonable inquiry and in good faith, believes to be genuine and what it
plllJl-OIIS to be including, but not limited to, Court Orders authorizing the release, disbursement,
or retentlon of Escrow Funds.
5.
Jn the event of a:ny disagreement between parties to !bis Escrow Agreement, or
between any of them and any other party, resulting in inconsistent claims or demands being
made in connection with the matters covered by this Escrow Agreement, or if the Escrow Agent,
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in good faith, doubts what action it should take hereunder, the Escrow Agent may refuse 10
comply or refuse IQ take action while such disagreement oontinues or such doubt exi$ts. The
Escrow Agent shall not he liable to any porty for its failure or refusal kl
ac~
and the Escrow
Agent shall be entitled to C()!ltinue to refrain from acting until: (a) the rights of oil interested
parties shall have bet:n fully and fmaily adjudicated by the Court; or (b) fill differences are
resolved and all d<mbt eliminated by an agreement among all oftlw interestod parties, ond the
Escrow Agent is notified in writing signed by ail sueh parties.
6.
The Parties irrevocably and unconditionally submit fO the jurisdiction and venue
of the 'Thurston County Superior Court for any proceeding arising out of this Escrow Agreement.
The parties to •gn:e not to commence any such suit, action, or proceedlng except in the courts.
7.
The Escrow Agent shall make all of the accounfu:tg and oooks reLlting lo the
administration or disbursement of the Escrow Funds fully available and open for inspection to
the Class Plaintiffs and the Defendants. Th.,, Escrow Agent shall provide timely regular
IU.-'COunting concerning the ailminis1ration and ciisbursement of the Escww Fonds, which shall he
provided on a monthly basis or as otherwise agreed to with the Class Plllintiffs in writing or as
directed by the Court in the Action.
C.
COMPENSATION OF ESCROW AGENT
1.
pur~nant to
The Escrow Agent shall be ei:uitled to compensation for services rendered
this Escrow Agreement as set forth in E;;;hlhil A and to the extent approved by the
Court in lhe Actlon. In addition, if the Escrow Agent is required to engage counsel to peifonn its
obligations under this Escrow Agreement, tbe Escrow Agent shall make the request to the Court
in the Action and, if approved, shall be entitled to reimbursement for the reasonable fees and
expenses of such couDSel.
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D,
MISCELLANEOUS
I.
Any notice, request for consent, report, or oilier communication required or
permit~d in this
Escrow Agreem<:ut shall be in writing and shall be deemed to have been given
when personally <iciivere<i io the party specified or when placed in the United States mail,
registered or certified, with return receipt requested, and OOdresscd as fullow.:
Ifto Escrow Agent:
f .ara McDennott
GILARDI & CO. LLC
3301 Kerner Blvd.
San Rafael, CA 94901
(415) 461-0410
lfto Defendants:
Michelle M Teed
Office of the Attorney Geneml
7141 CleanwaterLaneSW
POBox40124
Olympia, WA 9S504--0127
Phone: (360} 586-64%
i'ax: (3ii0) 586-6657
!fro the Plaintiffs:
Jolm J. White, Jr.
Kevin B. Hensen
Gregory A. McBroom
Livengood Alskog, PLLC
121 Third Avenue
POBox908
Klrklllll.d, WA 9B!l83-090S
(425) 822-9281
Danell L. Cochran
Pfau Cochran Vertetis Amala, PLLC
911 Pacific Avenue, Suite 200
Tacoma, WA 98402
(253) 777.{)?99
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Dmitri L. lg!itzin
Schwerin Cmupbe!l Barnard Iglitzin & Lavitt, LLP
18 W. Mercer Street, Suite 400
Seattle, WA"98Jl9
(206) 285-2828
Ifto the Escrow Agent f Claims Admicistrator:
Peter Crudo
GJLARDl & CO. LLC
:'301 Kerner Blvd.
San Rafaci, CA 9490 l
(415) 461-114!0
2.
11ie Part:Ws may designate a different address by giving written notice tc aU other
3.
This Escrow Agreement is intended to be construed according to the laws of the
Pru:ties.
State of Washington. It shat! inure 1o and be binding upon the parties and their respe~-tivc
successors, heirs, and assigns. All represenllltiona, covenants, a11d indenmillcation contained in
this Agreement shall survive the termination ofthls Escrow Agreement.
4.
The i:enns of this .l:iSCI'Qw Agreement may be modified or revoked only by an
instrument in writing signed by all the pnrlies b.crcto.
5.
lfany provision oftl:iis Escrow Agreement is illegal, i11operative, or
unenfotee11hle, that shall not affect any other provl..sion herei.n.
6.
The Escrow Agent mil)' resign at any time by providing written notice to the
l'.r.ies. Such resignation shall be effective not less than lhiny (30) days after such written notice
has been given. 1f no successor escrow agent has been appointed by the date the resignation
beoomes effective, the Escrow Agent shall tender into the custody of the Court all assets 1hen
held by it and shall thereupon he relieved of all further duties. The Parties shall appoint an
acceptable successor escrow agent subject to approval from the Cmin. Tho Escrow Agent shall
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have oo responsibility for the appointment of a su.ccessm· escrow agent.
7_
Final termination of this Escrow Agreement shall occur when the Escrow Agent
hall released all Escrow Funds from the Escrow Aroount
8.
TjtJes and headings in this Escrow Agreement are intended solely for convecicnce
cf reference and shall n<>t affect the interpre\ati(J!l of any of the provisfons hereof.
9.
This Escrow Agreement mil)' be executed in one or more counterparts, each of
which shall ix: deemed an original, hut all of which te>gether shall constitute one and the same
instrument
l 0.
Each of the unde<signed represents and warrants tbat he/she is fully authorized to
enter into the tenns and conditions of, and to exooute, this Escrow Agreement and that this
Escrow Agreement is valid, binding, and enforceable against the party QD wlmse bohalfhe/sbe
signed.
l
t.
Notwithstanding any provision to the contrary herein, the ES<Orow Agent shall
comply with all applicable state and federal laws.
FOR CLASS PLAINTIFFS:
LIVENGOOD ALSKOG, PLLC
PFAU COCHRAN VERTETIS AMALA, PLLC
Q_
/1[.. /.J..· ~
. Cochran, WSBA No. 22851
Class Counsel
Page9of10
p~
'l
A PP""""!
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FOR DEFENDA.>ITS:
WASHINGTON STATE OFFICE OF TIIB
ATIORNEY GENERAL
'--fVilttcetle "?~ f-1-J S:MicheneM. Teed, WSBANo. 39936
Attorneys fur Defundants
FOR PLAINTIFF SEW 775NW:
SCHWE.RJN CAMPBELL BARNARD
IGLTI'ZIN & LAVITI, LLP
Dmitri L. Iglitzin, WSBA No. 17673
Attorneys fur Plaintiff SF.JU 775NW
FOR ESG'ROW AGENT:
\}ILARDI & CO. ILC
Signature
Print Nam~
Its;------------Title
Page 10 oflO
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FOR DEFENDANTS:
WASHINGTON STATE OFFICE OF THE
ATIORNEY GENERAL
Michelle M Teed, WSBA No. 39936
Attorneys for Defendants
FOR PLAINTIFF SElU 775NW:
S.S,H~ CAMPBELL BARNARD
r7-:
& LAvrrr, LLP
~li:::w::At.
17613 -
Attomeyi fur PlQintiffSElU 775NW
Page 10 oflO
www.dshslawsuit.com
FOR DEFENDANTS:
WASHINGTON STATE OFFICE OF THE
ATTORNEY GENERAL
Michelle M. Teed, WSBA No. 39936
Attorneys for Defendants
FOR PLAINTIFF SElU 775NW:
SCHWERJN CAMPBELL BARNAR!>
lGLITZ!N &. LAVITI, LU"
Dmitri L. lglitzin, WSBA No. 17673
Attorneys for Plaintiff SHIU 775NW
FOR ESCROW AGENT:
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EXHIBIT A
www.dshslawsuit.com
Dei111ll Cochran
Pf4U Cocbnn1 V-artetls Amala AttQfll9YS at Law
Matter: Rekhtiirv. Wfl.!il'!lngt~nl Dept. of Social and HN.lth Services
ADMINISTRATIOl'I ESTIMATE SUMMARY
FULLAOMll'llSTRATIOl'I WITH CUllMS PROC!'SSING AND DISTRIBUTION SERVICE'S
KEY ASSUMPTIOJiS:
1 - l:st.imetad class gJm of20,468 PrOYiders
2 - Ne!lce Packet wiH lnctude 4··ptige N'oilce tind 1-pGOC CCYer Ll!lttef/Chti:K;ingo- Fann
3- Defendoot will provide Social security Numbel'lli
4 - T~.free number \l!J.h t"/R :on::I rol!ovcrtti ~\'l.'ti q:;s;atof S;l.l~
O- lnte:nictlve Cij1j.f)-(l'.(:(;llc$ted' WOb6118 v.ith online d1s1iule procesa
6 - settlement ~rd$ WRI be distributed vith tiix forms {'11-'ZJ In a :single distrlbutkm
7 - UnchasheQ Che¢1i: Reminder Poi>tcard mailed kl Class Membera with unceahed nheruts after 1BO day~
a~ Settlement Jund reporting: will be. requlred for o~ year
9- Residual funds io be disbl.n.ed aa dlrecled io the:jlJdgment
CiAfj!!
Sif:E:
Total &itlmated CIKJ Sii:t.
FH!na Pers;.s$AA ond U,1!1lbor qt c1111m1 FUMi
0.15%
102
SERV1CES:
Not'ifil'.:ltltbn Procedures
Proc:m:si'igfRepcrting
O~triJLition
Nctice Prograrn
Demage Expert
Gilardi Coordination v.tth Damage Expen
TcrtAI EittlmatadAdmlnlstrati"Dn Costs
$
77,119
20,884
80,708
30,000
2",000
5,000
$ 233,71'[
www.dshslawsuit.com
Darell Coch~
f'fau Coehrsn Verteao: Am1l11. Attarneyo at L-ew
Mattor. Rekhtar v. WasfWn;ton C1ept. .of S:ocl!illl and Hsalttl Servtcos
Page 2 Cff 5'°1 Cost Estlmata $p:eadaheet
SLIMMARY OF Gil.ARD! llERVICES AND THIRD PARTY EXPENSES
11.5%
10Z
§ll.ABJ)C SERVICE§:
Case Setup
MedUnCI Deh\ba~ Prepar.Ji:ion
SoJiwafe Cu&!:omiaUon
000
1,350
000
000
$
Document Formetting
1.s,aoo
C;sGM~nt
lnvat..tiglltiwl Work Locating Claimanta
S,000
1,080
512
Prirrt Prod'ucllon Sl&fJ Hour&
RUM Scannlrog
Addtess Sear<:.hla
i;<Q
Tei<>phono Support
24,a.to
Prtcei.:Mnw irld Raporti;g
20,1)84
1,620
7200
S3.2:25
SSN Vidldlilliln
Distribl!tlcn
Subl:Glat GilaKi ssMces
$
CASE BELATED p'.P!.NSSS•
NCOA
$
Prlntrng lnffial Notice Pmt:ce.n::l~
Oomestb Flrs1 ClaiSS Poetage
Ad&ei;i Seercho$
Telephone Support Setup
Notic.e P!K;ket RO(tue;t Fulflllment
Clomeatio Flret CJttss PD.dage
Prln11ngJl'i9.lling Form w~~
5,"4-18
4,937
212
156
2,037
Cheol< Pr'<lting
D.omeatlc Fln;t CaiS Pcstagt
Printing Unch§hed Check Reminder PoJtc:iird
Pomes'!ie Fnt: Clas!i Posl8'Je
2~4ti7
7,769
2,315
1,0>4
4,582
15,274
?..800
900
Oea.'Lh rlfl~iuiry searcne&
biiSL."eTaxforrns
Tex Repmting
Residual Fund SEi'vices
Wehslt& Omiel0pn1e11t
Subkltal Exp&n&eti
25!)
9,006
7,795
MOO
$
961486
KOTl(;E ERQG'Wl;
Print Publlcetlon
Pak! On!ln!ill AdvertiSL'lg
17,900
10,400
Pres.SR~
1 000
$
30,ooo
Damege Expert Doug McDanlsrs &lfvi~s forCalculatiooa
Gl~ardi CcordinaliOn Mill t>.e1ma1;1B Expert
;
20,000
§iotlll
Subt01al Damage ExPM
$
25,000
SubtOfal Pub!!eatlOl'l
DABAGE EXPERT:
Total &tlmated Adminlstl'lltlon F..s:
$233,711
www.dshslawsuit.com
Jul)' 24,2014
GJfilPi
De.roll Cochran
Pfau Cochran V&neb Amala Attomays at Law
Mafuilr. Rekhter "". WalilhJngton CRPt of Bocmt end Health SIC!rvlC&s
Page 3 er S of Cost F.!fl!mete Spreadshtlet
NOTIFICATION PROCEDURES
Unff: !tab!
NODFICATIQN PBOCEOOBCS
Oooument Formattl1tg & C:len Oala Pr•paratiOl'J
case Se'lup
MalllnB D11tabass Preperalion
Software Customi:mtlon
Dcicumcnt Formatllng
$
$
'
$
$
Caee Me.nagemerrt
lnvt:iStigatlv:e Work Locating Claimants
$
90.t1D
SO.OD
9MD
50,00
90.00
90.00
eo.t
Valume
10 ""
~
15 ...
Total
900
1,$51)
mi
POO
10 "'
800
10
13,500
150 ..
1(10 IV6
9,000
NCQA
250
Subtctal' FormaWl'tQ & Dllla. Prep
~
:;t;,IJIJO
PrlnunglMaJl11lQ
Notice Packet:
4·~
$
0.-44
20,468
$
$
0.381
90,00
20,4£8
$
9,006
Notice, 1~page Cev~rletter/Ch8tlenge Fann, #10 env, #9 BRM env
DolOOSl:le Fhl ChillBS Po~tagi,,
Ptint ProducUOn S~ft Hour&
sublotal P~g/Me!HllQ'
7,798
900
10 ""
17,704
RsWmod IJrldiellworablo Mail Halldling rRUM'"}
Total % & #of RUM Pieces
$
0.10
Ct, 117
5,117
$
512
$
0.25
5,117
$
1,279
$
0.52
0.361
90.00
4,605
2,384
4,S05
1,755
25%
RUM Scanning
~12
AddrnGS StH.rch Servku (Sk1p.Tracf1111J
f. of Searches {from RUM above}
Ciro.SS Liat Cootaln-s SSNa? (YIN)
# o1 New Addreasea Found ~md ~rtiell
y
90%
Domestic Fi~ ClaN Postage
Staff Hotn PtrfiHtning Acldr Se~rchea. & Re-Mails
SUbtotal Piddrt$$ $ewe~
$
$
6 ...
5'10
5,908
"i Oll•fre& '[QJt!PhOi"r.e Suppan
One-Tim.& Satup.
IVR Script [}j;!veJopmant, Prcgramming &. 'r&W/"IU
MOO'lhly Llne Charges
Eetlmakla 'fotat Can v~me
i
il0.00
$
150.00
Totar: Estimatl!d IVR Minute ~II!elS
Esttmated % oou # or Live Operat.ar T~ rera
A\'Mlge Minutes Per Ciln (Uve}
StEiT Hours PrOVkrl'I~ UVe Phone SUpp(lrt
50%
Estimated% anti# of Galle~ ReqV8$ting Notloe P6.Ckel
Natice Paokel ~est Fulfillment
10%
1,600
460
125 ""
...
1~aoo
4,0g4
20%
Average Minutes Per Call {IYR}
DomesUc Flrat Cle:8$ Postage
$t1btot.ar iekiptJCJne S:.!pport
$
•
•
0.10
16,374
2,047
$
90.00
171
1s.:.u10
0.52
409
409
409
212
1~637
min
5
s
$
{).381
«a
2\,1<5
Webslt'e Cev!'lopm.em
loiiarac:tivn case-ded!cated wetnlte ~ti ooUoo dispute process
Subfntal Notification Prcx:edt1res
$
5000
5 000
$
77,119
www.dshslawsuit.com
Daren Cochran
Pfau Ceochnin Vertdfa Amala. Attorneys e:I Law
Matmr: Rekhterv. W~fllngton Cklpt. cf Social aOO HaaHh
P;,oa 4 d 5 of Coil E&timA\$ Spread~hem
hrvicea
CLAIMS PROC!:SS!NG AND DISTRIBUTION
frD!.l!ciJKt fomtl Fii3d
(% tnd #. ~)
«
PA~EPQRTI!/G
llrlltR111
ObpimJCUlicltge PJoc:.nslnill (COit ptf chi\llt!Wlt O'I' niflwt FQWH:IJJJg)
.....
Crmp1r ~~ up104 Cna~Flllld'\1111 Mi:ir
Ci:wlprr.~'ltirupb$1C~!'=~W11t'V11~e
BRM~~
~II
Probllt DitpuJA.s
$1.!d!' naum ll(OCC£WQ p;obalc QsJ'.UleS
Rtporthl~imrtklfl
Staff hDl.tf. hatifing aiihms l¢ms
Star hoin for Qllfllni c11*'rled orret)Rlndertce
D1CbraUotlrltiJtlce,Pnxz~s
R'llPO!in~ -Assimes ix per\'!Mk
Subtcital PrvcnCn!Jl'R9porllng
....
con
"'""'"
i:Cl.76
Eidtnllled Nurli)ec"o( Foonsfiledtll'uW~
Eltinnd Ntrrm-"d ~ 111M Jirf Po8lll M11n
~"'
1D2
•
0.95
•
00.00
••
••
.....
.....
"'-"'
!111.00
"' •
•
5
.....
200~
5 ...
'"
10 ...
73
"'
10,000
...
""
""
• ""'
al18M
www.dshslawsuit.com
Danill Cochnll1
~
Pfau CQahran Vertetlw. Arnala Attome)'s at Uiw
M;iitti!r. Rekllter v. Washlt\Q(orl Dept. ot Social anti tt~Jlh 8aJVk:98
Page 5 of 5 cf COst Estimate Sp£&ad!ihaet
CLAIMS PROCESSING ANO DISTRIBUTION {e<>nt.}
Ur.It R:t.t&
2'JIBIE!UDON
SffiDMTIKtl'll!'ld Mlmgtll'.«l(ll'd ObWnlt;;l:Ta:iO)
tlk!riW!bt ~
Dklrlbulnt Pn!palztloh
Sl.tlml~ lrda to.SSA kll"
Namll{flfll M!tlilatcfl
~'lfiMCllcrll'ili~
'" ••
Pri:'i/Mal:IRS Fl!m'IB Wo9 rti'Msmald\et
~iF\H"ll'll W-GRetundtry ~lllflb
""""'"""'"""
brsi.ltebW
J5SU! riw Forms W-2
Dcl'tlMticFlnd.ClmaPQ•tpge
••
~Cl1~Rnnlni:ltrPMWo."1
Rm!OOK Rl$loard ID ClnJ lor$11Jflm ~cllack /er1J8hs:
Ul';CJlllhtidllfltll'1E10Qfl)'!I"
E3tlmatad % and tofClass flblll;Q'$ wilh in:ashld dlad:s
R.Wr\R*pcllltollttl pit*lq
ltomestio Firat. C!ttH Fma;a
Ptlnt Prod.ctiorl StsffHotn
FolllM"~Td::pl)Cll'le Call$
'felc{AolW ~ l'M'JMfing Cl/JSS. ~
'°
~ ctloc(f$
llnth AtiifWy S.rdl
Surobddedi r~1orCl&sll 1Jiemter.'l'i'i!h ~cheeks
IRS
S8tllemrtt Fund T~~rilng
Resldattl Fund SIM'VICH
li1dI 1-'!oi.n HClllllng Ch&l:k ~ISllall.
P.nd.~~;
SubtDbl DIAb'R1UUOll
•
•
•
2s5
1() blll $
~"'
"""
0.7'
0.381
•
..
20.aeo ..
25.457
15,27.(
2!1,300u
r;rn~
0.251
...oo
100
...
2,MI;
,,.,.
,.,
~DOil
tin
.....
'·.....,""""
6,110 ...
3-S&.OO
I "
' 2,501).00
$ 000.00
1"
••
,....
'"'"
\,Z&
20,"J~
.S,110
6,'1.10 c-.
6,110 ..
1),7.'5
"''
1,<11&
i5 rm:.
OO<l
,,...
Z7<1<1
"'3h•.,.
1,018 ••
- ...
••
"'"'"':ao
2.00
• "'""
Smffbouls maiOO; fDbl-~ phone call'
~PQl"l W.2 lnl'CllTltalOO kl
•
"""
•• "·"
• .....
00.\lO
1 ••
ijlHK'I
10 hr:i
OMO
HI hr.i
!
""
...,..
www.dshslawsuit.com
IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON, IN AND FOR THE
COUNTY OF THURSTON
LEYA REKHTER; et al.,
Plaintiff/Petitioner
vs
No. 07-2-00895-8
STATE OF WASHINGTON, DEPARTMENT
OF SOCIAL AND HEALTH SERVICES; et al.,
DECLARATION OF
EMAILED DOCUMENT
(DCLR)
Defendant/Respondent
I declare as follows:
1.
2.
3.
4.
I am the party who received the foregoing email transmission for filing.
My address is: 3400 Capitol Blvd. SE #103, Tumwater WA 98501
My phone number is (360) 754-6595.
I have examined the foregoing document, determined that it consists of 39
pages, including this Declaration page, and that it is complete and legible.
I certify under the penalty of perjury under the laws of the State of Washington that the
above is true and correct.
Dated:
January 21, 2015
at Tumwater, Washington.
Print Name: James Lincoln