Spiro v. Trinity Management Services

A Court authorized this notice because you have a right to know about the proposed Settlement of this class action lawsuit, and about all of your options, before the Court decides whether to give Final Approval to the Settlement. The notice explains the lawsuit, the Settlement, and your legal rights.

Judge Andrew Y.S. Cheng of the Superior Court of the State of California in and for the County of San Francisco is overseeing this case. The case is known as Spiro, et al. v. Trinity Management Services (Case No. CGC-17-562293 (the “Lawsuit”). The people who filed the lawsuit are Jonathan Spiro and Simone Kaplan, and they are called the Plaintiffs. The company against which the lawsuit was filed is Trinity Management Services, Inc. (“Trinity”) and it is called the Defendant.

In this lawsuit, Plaintiffs allege, among other things, that Trinity violated the law by using a “Utility Invoicing and Allocation Addendum” to its lease agreements to charge rent-controlled tenants for water, sewer, trash, and recycling services (referred to as “Allocated Utility Charges”). Plaintiffs allege that these allocations caused each tenant’s total rent amount to exceed the maximum amount of rent which the Rent Ordinance allows. Plaintiffs also allege that Trinity improperly failed to pass on refunds it collected from utility providers (including Recology) to its rent-controlled tenants.

The causes of action asserted in the First Amended Complaint are for: (1) violations of California Business and Professions Code section 17200, (2) violations of the San Francisco Rent Ordinance (known formally as San Francisco Administrative Code, chapter 37), and (3) breach of contract. The First Amended Complaint contains all of the allegations and claims asserted against Trinity and can be obtained from the Court Documents page on this website, or by requesting a copy from Claims Administrator following the instructions in FAQ 27 below.

Trinity denies the allegations asserted in the Lawsuit and it denies any wrongdoing or liability whatsoever. The proposed Settlement is not an admission of guilt or any wrongdoing by Trinity.

In a class action, one or more people, called “Class Representatives” (in this case, Plaintiffs Jonathan Spiro and Simone Kaplan), sue on behalf of people who have similar claims. The people included in the class action are called the Class or Class Members. One court resolves the issues for all Class Members, except for those who timely exclude themselves from the Class.

The Court decided that the trial of this case should occur in more than one phase (called a “bifurcated trial.”) The Court has already conducted the first phase of the bifurcated trial. Following the first phase of the bifurcated trial, the Court decided that the Rent Ordinance precludes Trinity from charging any rent charges to Class Members greater than the “base rent” as defined on page 1 of their Lease Agreement, and that by allocating extra charges to Class Members for water and trash in addition to the contractually agreed-upon “base rent,” Trinity violated the Rent Ordinance. Trinity has stated its intention to appeal the Court’s decision to the Court of Appeal. Trinity’s appeal has not been filed or decided by the Court of Appeal.

The second phase of the bifurcated trial—at which time the Court would decide all remaining issues in the case, including whether to award damages and, if so, how much to award—has not yet occurred.

Rather than continue to litigate this case, both sides agreed to the Settlement. By agreeing to the Settlement, the Parties avoid the costs, uncertainty, and delay of the second phase of trial and any appeal that might be filed after the trial, and Class Members receive the benefits described in this notice. The Class Representative and Class Counsel believe the Settlement is best for everyone who is affected.

The Class includes all individuals who, at any time between November 3, 2014, and March 12, 2020:

• Rented or leased any residential property located in San Francisco that, at any time during his or her tenancy, was: (1) owned, managed, operated, or maintained by Defendant Trinity Management Services, and (2) subject to the San Francisco Residential Rent Stabilization and Arbitration Ordinance, codified at Chapter 37 of the San Francisco Administrative Code, and
• Paid Defendant Trinity Management Services and/or its agents for trash, recycling, water, or sewer services; and
• Where such payments were based on calculations based on the Utility Invoicing and Allocation Addendum attached to and incorporated into the Tenant’s Lease at said property.

The Class does not include any Judge who oversees this case or any of his or her immediate family members.

Class membership is subject to validation and will be determined by the Claims Administrator based on whether Trinity has a record of the Class Member meeting the criteria stated above, or if the Class Member can show evidence establishing that they meet the criteria above.

If you received notice of this Settlement via e-mail or postcard from the Claims Administrator, this indicates that Trinity has a record that a tenancy is associated with your email or physical address. You may contact the Claims Administrator if you have any questions as to whether you are in the Class.

Upon Final Approval of the Settlement, Trinity will pay a total of $3,150,000 into the Settlement Fund. After Final Approval, none of this money can ever go back to Trinity. Instead, the entire Settlement Fund will be used to pay: (1) Class Member benefits, (2) Class Counsel’s fees and costs as approved by the Court, (3) Class Representatives’ incentive awards (to the extent approved by the Court), and (4) the costs to administer this settlement (to the extent approved by the Court). If there is any money remaining after all Class Members have been fully paid all of the benefits available under this Settlement and all of the other approved fees and costs have been paid, then the funds will be distributed to a non-profit organization called the Lawyers’ Committee for Civil Rights of the San Francisco Bay Area. Information about this organization can be found at www.lccrsf.org.

The fund from which Class Member claims will be paid is the “Benefit Fund.” This consists of the $3,150,000 paid by Trinity, minus: (1) Class Counsel’s fees and costs as approved by the Court, (2) Class Representatives’ incentive awards (to the extent approved by the Court), and (3) the costs to administer this settlement (to the extent approved by the Court).

If you are a Class Member and you do not exclude yourself from this Settlement, you will be entitled to receive a portion of the Benefit Fund. The benefits you are entitled to receive are described in detail in FAQ 8.

To qualify for compensation from the Settlement, you do not need to do anything. If the Court grants final approval of the Settlement, all Class Members who do not exclude themselves from the Settlement will automatically receive benefits that are described in FAQ 8.

If you are entitled to a settlement payment, you are strongly encouraged to make an election to receive your payment electronically or by paper check and to update your mailing address with the Claims Administrator. You may do so by visiting the Claims Administrator’s website at www.TrinityLawsuit.com, by calling the Claims Administrator at 1-888-440-1281 or writing to: Spiro v. Trinity Claims Administrator, 50 Corporate Park, Irvine CA 92606.

If you do not exclude yourself from this Settlement, the benefits you will receive from the Settlement will be your pro-rata share of the Benefit Fund. The Settlement Payment you receive will be based on three factors: (1) the amount of your “Apportioned Utility Charges,” (2) the total “Apportioned Utility Charges” for all Class Members who participate in the settlement, and (3) the amount of the “Benefit Fund”. These three factors are described below:

• Trinity will pay a total of $3,150,000 into the Settlement Fund. After Final Approval, none of this money can ever go back to Trinity. – This is the total amount that Trinity’s records show it charged your apartment for water and trash services, divided by the number of Class Members who lived in the apartment. For example, if Trinity charged a total of $1,600 in water and trash charges for your apartment and you lived in the apartment with one other Class Member, your “Apportioned Utility Charges” are $800. If you were the only Class Member who lived in the apartment, your Apportioned Utility Charges are $1,600.

• The total “Apportioned Utility Charges” for all Class Members is estimated to be approximately $4,200,000. If some Class Members choose to exclude themselves from the Settlement, then this amount will be lower, which would have the effect of making the Settlement Payment for Class Members who participate in the Settlement slightly higher.

• “Benefit Fund” – This is the total amount available to pay all Class Member benefits. As described in FAQ 6, the Benefit Fund is the $3,150,000 gross settlement amount, minus: (a) attorney’s fees and costs approved by the Court, (b) Incentive Awards to the Class Representatives that are approved by the Court, and (c) the costs the Claims Administrator charges to administer the settlement that are approved by the Court. Attorney’s fees and costs will not exceed $1,400,000 (see FAQ 20), the Incentive Awards for both Class Representatives will not exceed $20,000 total (see FAQ 20), and the cost of administration is expected to be approximately $49,500 (see FAQ 9). Consequently, the Benefit Fund is expected to be at least $1,680,500.

The Claims Administrator will calculate your pro-rata share of the Benefit Fund by dividing your Apportioned Utility Charges by the total Apportioned Utility Charges for all Class Members participating in the Settlement. Your pro-rata share is then multiplied by the Benefit Fund to determine your Settlement Payment:

You should have been notified of your estimated Settlement Payment by the Claims Administrator when you were provided notice of this Settlement. If you did not receive this information, please contact the Claims Administrator at 1-888-440-1281 to obtain your estimated Settlement Payment amount.

The Settlement Agreement (available here) provides additional information about the determination of benefits.

The Settlement will be administered by a third-party company (known as a “Claims Administrator) that is not affiliated with Trinity in any way. The Claims Administrator is:

Spiro v. Trinity Claims Administrator
CPT Group
50 Corporate Park
Irvine, CA 92606

The fees and costs of the Claims Administrator are estimated to be $49,500.00. These fees and costs, if approved by the Court, will be paid from the Settlement Fund.

If no objections are filed, the Claims Administrator will send payment checks after the Court gives the Settlement final approval and, if necessary, approves the transfer of the Settlement Funds. If any objections are filed, and/or if any appeal is taken, payments will be delayed until the time to appeal has expired or any appeals are finally resolved in favor of the Settlement.

If you do not exclude yourself from the Settlement, you are strongly encouraged to elect to receive your Settlement Payment either by paper check or by electronic transfer and to update your mailing address with the Claims Administrator. You may do so by: (1) visiting the Settlement website (www.TrinityLawsuit.com), (2) calling the Claims Administrator at 1-888-440-1281, or (3) writing to the Claims Administrator at: Spiro v. Trinity Claims Administrator, CPT Group, 50 Corporate Park, Irvine, CA 92606.

If you do not elect to receive your payment electronically, a check will be mailed to you at the address you provide to the Claims Administrator. If you do not provide your mailing address to the Claims Administrator, the check will be mailed to the last known address that the Claims Administrator can locate for you, which may or may not be your current address.

You will have 180 calendar days to cash your check. If you do not cash your check within 180 calendar days from when it was issued, the Claims Administrator will stop payment on your check and the funds will be relinquished back to the Benefit Fund to be redistributed to Class Members who successfully received their Settlement Payments.

Neither Plaintiff, Class Counsel, Trinity, Trinity’s Counsel, nor the Court is giving any Class Member advice on whether the benefits provided in this Settlement are taxable or how much any Class Member might owe in taxes. Class Counsel believes that in some situations, some or all of the benefits provided in this Settlement could potentially be taxable.

Because some of the benefits in the Settlement potentially could be taxable, an IRS Form 1099 may be issued to each Class Member reflecting the total benefits provided to them under this Settlement. Class Members should consult a tax advisor if they have any questions about the tax consequences of the Settlement based on their specific situation.

If Trinity’s records do not already include a Social Security Number or Tax ID Number for a Class Member, the Claims Administrator may request from some Class Members a Social Security Number or Tax Identification Number. If a Class Member does not provide a Social Security Number or Tax ID Number to the Claims Administrator upon request, a tax withholding of approximately 30% may be deducted from that Class Member’s Settlement Payment.

Please speak with your own tax professional about any questions about taxes. The Claims Administrator, Class Counsel, Trinity’s counsel, and the Court cannot answer those questions or give you any tax advice.

Nothing in this Notice or in the Settlement should be relied upon as advice regarding taxes or taxability.

As long as you meet the definition of a Class Member and you do not exclude yourself from this Settlement, you are entitled to all of the same rights and benefits of the Settlement if you continue to reside in your Trinity apartment.

Additionally, as part of the Settlement, Trinity has agreed that, as of the date of the Settlement Agreement (January 25, 2023), it will no longer charge Allocated Utility Charges to any Class Member who still resides in their apartment. If you receive any bills from Trinity for Allocated Utility Charges after January 25, 2023, you have a right to have those charges reversed or refunded.

To be a Class Member, you must have “rented or leased” a qualifying apartment during the time period specified. Consequently, to be a Class Member, you need to be named as a tenant in a lease agreement with Trinity. If you lived in a Trinity apartment, but your name was not listed as a tenant on the lease, please send the Notice to the listed tenant(s) so they can decide how they wish to proceed.

If you are a Class Member and you live(d) in an apartment with one or more other Class Member(s), the Settlement Payment to which you are entitled will be calculated by dividing the total benefits for the apartment as a whole equally by the number of Class Members who, based on Trinity’s records, shared the apartment. See FAQ 8 for more information about how your benefits will be calculated.

Unless you exclude yourself from the Settlement, you are staying in the Class and cannot sue or be part of any other lawsuit against Trinity, or the other Released Parties, for claims arising out of or relating to any allegation that Trinity or any of the Released Parties improperly or illegally charged any Allocated Utility Charges at any time through and including January 25, 2023 or that Trinity failed to remit to or credit you with any refunds received by Trinity attributable to any of such Allocated Utility Charges. This includes any allegations that any rent increases were allegedly improper or illegal solely because of Trinity or any Released Party charging you an Allocated Utility Charge.

Unless you exclude yourself, all of the decisions and judgments by the Court in this case regarding the Settlement will bind you. If you do nothing at all, you will be releasing Trinity and the other Released Parties from all of the claims described and identified in Section 6.1 of the Settlement Agreement (the “Releases”).

The “Released Parties” include all owners of residential property in San Francisco that were managed, operated, or maintained by Defendant Trinity Management Services, and each of its direct or indirect parent companies, subsidiaries, affiliates, divisions, joint venturers, predecessors, successors, members, and assigns, together with each of their directors, officers, employees, agents, attorneys, shareholders, trustees, underwriters and insurers, and for each person identified above, all of his, her, or their respective past, present or future heirs, estates and personal representatives.

If you stay in the Class, you agree to forever release Trinity and all of these Related Parties from:

• Any and all claims, including assigned claims, regardless of the legal theory, existing now by any or all members of the Settlement Class arising out of or relating to any allegation that Trinity or any of the Released Parties improperly or illegally charged any Allocated Utility Charges at any time through and including January 25, 2023 or failed to remit to or credit the Settlement Class with any refunds received by Trinity attributable to any of such Allocated Utility Charges, including any rent increases that allegedly were improper or illegal solely because of Trinity or any Released Party charging any Allocated Utility Charge.

This release will remain effective regardless of changes in the circumstances or condition of Trinity, the other Released Parties or such Class Members.

By participating in the Settlement, you are not releasing Trinity or anyone else from any unrelated claims that are outside of those claims described above. You may continue to pursue any of those unrelated claims even if you participate in the Settlement.

You may exclude yourself from the Class and the Settlement. If you want to be excluded, you may complete the Opt-Out Form located on this website and submit it online or print it and mail it to the Claims Administrator.

As an alternative to submitting and Opt-Out Form, you may also exclude yourself from the Class and the Settlement by sending a letter or postcard to the Claims Administrator that includes the following:

• Your name and current address;
• The address of the Trinity apartment in which you resided and the approximate dates you resided in that apartment;
• A clear request that you would like to “opt-out,” or be “excluded,” or other words clearly indicating that you do not want to participate in the Settlement; and,
• Your signature.

You may submit an opt-out request (either an Opt-Out Form or the letter/postcard described above) either electronically, by e-mail, or by postal mail. To be valid, opt-out requests must be postmarked on or before June 20, 2023, or submitted online on or before 11:59 p.m. (Pacific) on June 20, 2023.

In the event there are any technical deficiencies in the opt-out form or letter/postcard you send to the Claims Administrator, the Claims Administrator will contact you to resolve the deficiency.

If you do not exclude yourself by opting-out of the Settlement, you give up the right to sue Trinity for the claims that the Settlement resolves. These claims are described in FAQ 14. If you want to pursue your own lawsuit against Trinity for any of these claims, you must exclude yourself from the Settlement.

No. If you exclude yourself from the Settlement, you will not have any rights under this Settlement, you will not be entitled to receive any compensation from the Settlement, and you will not be bound by the Settlement Agreement or the Final Approval Order.

The Court has appointed attorneys Kenneth Seeger and Brian Devine, partners of the law firm Seeger Devine LLP to represent you and others in the Class as “Class Counsel.”

Unless you exclude yourself from the Class, Class Counsel will represent you and others in the Class. You will not be charged for these lawyers.

Class Counsel’s contact information is:

Brian Devine

SEEGER DEVINE LLP

4040 Civic Center Dr., Suite 200

San Rafael, CA 94903

bdevine@seegerdevine.com

www.seegerdevine.com

Yes. If you want to be represented by your own lawyer, you may hire one at your own expense.

Any payments to Class Counsel for the attorneys’ fees and costs that were incurred in the Lawsuit must be approved by the Court. If the Court approves these fees and costs, they will be paid from the Settlement Fund described in FAQ 6. Class Counsel intends to request that the Court approve an amount not to exceed $1,400,000 for the attorneys’ fees incurred in researching, preparing for, prosecuting, and litigating this Lawsuit, and for reimbursement of reasonable costs and expenses incurred in the Lawsuit.

Class Counsel also intends to ask the Court to approve an “Incentive Award” to be paid to Class Representatives Jonathan Spiro and Simone Kaplan in the amount of $10,000 each. If approved, this will be paid from the Settlement Fund. An “Incentive Award” is intended to compensate individuals for the time and risk they devoted to bringing a class action lawsuit that benefits a large number of people other than themselves.

Class Counsel will file a motion asking the Court to approve the attorneys’ fees and costs and the Incentive Award for Class Representatives. This motion will be filed on or before June 13, 2023, and it will state the exact amount that Class Counsel asks the Court to award for attorneys’ fees, costs, and Incentive Awards, and it will set forth the factual and legal grounds on which the requests are made. You are entitled to object to this request, as described below.

If you are a Class Member, and you do not choose to “opt-out” or exclude yourself from the Settlement, you can object to any part of the Settlement, including the Settlement as a whole, Class Counsel’s requests for fees and expenses and/or Class Counsel’s request for an Incentive Award for the Class Representatives.

To object to the Settlement without appearing at the Final Approval Hearing, you must send a letter that includes the following:

• Your name, address, email address;
• The address of the Trinity apartment in which you lived and the approximates dates you lived there
• A clear statement that you would like to “object,” or other words clearly indicating that you do not think the Settlement as a whole, Class Counsel’s requests for fees and expenses and/or Class Counsel’s request for a Service for the Class Representative should be approved. To support your objection, you may retain your own counsel and/or include a statement of legal support, but you are not required to do so; and
• Your signature.

To have your written objection considered, you must mail your objection, postmarked no later than June 20, 2023 to:

Spiro v. Trinity Claims Administrator

50 Corporate Park

Irvine CA 92606

Even if you do not send in a written objection, you may attend the Final Approval Hearing at 10:00 a.m. on July 20, 2023, in Department 613 of the San Francisco Superior Court, 400 McAllister Street, San Francisco, California, 94102. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate, and you may ask the Court to be heard, and then tell the Court that you object to the settlement.

In the event there are any technical deficiencies in the objection you send to the Claims Administrator, the Claims Administrator will contact you to resolve the deficiency at the email address you provide.

Objecting is telling the Court that you do not like something about the Settlement. You can object to the Settlement only if you do not exclude yourself from the Class. Excluding yourself from the Class is telling the Court that you don’t want to be part of the Class or the Settlement. If you exclude yourself from the Class, you have no basis to object to the Settlement because it no longer affects you.

If you submit a request for exclusion, you are no longer part of the Class. As a result, you cannot object to the Settlement. That means if you submit an Opt-Out form and an objection, your objection will not be considered because you will no longer be part of the Class.

The Court will hold a Final Approval Hearing to decide whether to approve the Settlement, and the request for attorneys’ fees, expenses, and an Incentive Award for the Class Representatives. You may attend and you may ask to speak, but you do not have to do so.

The Court will hold a Final Approval Hearing on July 20, 2023, at 10:00 a.m., in Department 613 of the San Francisco Superior Courthouse, 400 McAllister Street, San Francisco, California, 94102. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. The Court will also consider any request by Class Counsel for attorneys’ fees and expenses and for an Incentive Award for the Class Representative. If there are objections, the Court will consider them at this time. After the hearing, the Court will decide whether to approve the Settlement. We do not know when the Court will make its decision.

The Court might move the Final Approval Hearing to a different date or time in its sole discretion. The date and time of the Final Approval Hearing will be updated on the settlement website, or you may contact the Claims Administrator, or you can check the Court’s docket using the instructions in FAQ 27.

No. Class Counsel will answer any questions the Court may have. The hearing is free but if you wish to attend the hearing, any travel expenses associated with attendance are at your own expense. If you send an objection, you do not have to appear in Court to talk about it. As long as you submit your written objection on time, to the proper address and it complies with the requirements set forth previously, the Court will consider it. You may also pay your own lawyer to attend, but it is not necessary.

Yes. The Final Fairness Hearing is open to the public and you may attend if you wish. You also may ask the Court for permission to speak at the Final Approval Hearing if you wish to be heard.

You do not need to do anything to be sent benefits under this settlement. If you do nothing at all, then you will automatically be part of the settlement and you will be sent a settlement payment as described in FAQ 6-8. By doing nothing, you will still be releasing Trinity from all of the claims described in FAQ 14 and you will not be able to be part of any other lawsuit against Trinity about any of the released claims. If you do not want to be a part of the Settlement but you also might want to sue Trinity for these claims on your own, you must exclude yourself from the Class (see FAQ 15-17).

Even though you do not need to do anything to be sent benefits under this settlement, you are strongly encouraged to use the website or call the Claims Administrator at 1-888-440-1281 to ensure your correct mailing address is on file and/or to elect to receive your settlement payment electronically.

This detailed notice summarizes the proposed Settlement. More details can be found in the Settlement Agreement. You can obtain a copy of the Settlement Agreement one of the following ways: (1) access it on this website, (2) calling the Claims Administrator at 1-888-440-1281, or (3) writing to the Claims Administrator at: Spiro v. Trinity Claims Administrator, 50 Corporate Park, Irvine CA 92606.

You can also view a copy of the Settlement Agreement and other case filings by visiting (https://www.sfsuperiorcourt.org/online-services), which provides access to the full docket in this case free of charge. At this webpage, click “Case Query” in the left sidebar or in the body of the page. Then, enter the Case Number: CGC17562293. The full docket, along with other information, will be displayed.

You can also contact Class Counsel (see information in FAQ 18).

Do not contact Trinity or the Court for information.