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UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
MALVERN J. GROSS, JR. and PAUL JIMISON, individually, and on behalf of all
others similarly situated,
PIaintiffs,
v.
MOBIL CORPORATION, a corporation; MOBIL OIL CORPORATION, a corporation; MOBIL
INTERNATIONAL AVIATION AND MARINE SALES, INC., a corporation,
Defendants.
No. C 95-1237 SI
NOTICE OF PROPOSED SETTLEMENT AND HEARING
CLASS ACTION NOTICE
TO OWNERS OF TELEDYNE CONTINENTAL 360, 470, 520 AND 550 SERIES SYSTEM
AIRCRAFT ENGINES
YOUR LEGAL RIGHTS MAY BE AFFECTED BY THIS NOTICE.
PLEASE READ IT CAREFULLY
IF YOU HAVE NOT USED MOBIL AV-1, THEN YOUR RIGHTS.ARE NOT AFFECTED BY THIS
NOTICE, AND YOU DO NOT NEED TO RESPOND
THIS NOTICE ANSWERS THESE IMPORTANT QUESTIONS:
- Why should I read this Notice?
- What is the lawsuit about?
- What is a class action?
- Who is in the Class?
- Who represents the Class?
- What are the terms of the proposed Settlement?
- Who pays Class Counsel's Fees and Costs?
- Do I need to do anything in order to participate in the Class and
Settlement?
- How do I make a Claim?
- How do I comment on or object to the proposed Settlement?
- What is the Settlement approval procedure?
- Where do I get additional information?
1. WHY SHOULD I READ THIS NOTICE?
Your rights might be affected by the proceedings in the lawsuit known as
Gross. et al. v. Mobil Corporation, et al., Case No. C-95-1237 SI ("Gross
lawsuit"), pending in the United States District Court for the Northern District
of California, ("the Court"). This Notice is given pursuant to Rule 23 of the
Federal Rules of Civil Procedure and by order of the United States District
Court.
The purpose of this Notice is to inform you of the lawsuit and the proposed
settlement which has been preliminarily approved by the Court. Tln's Notice sets
forth essential information concerning the settlement and your potential rights
under that settlement.
2. WHAT ARE PLAINTIFFS' CLAIMS?
On April 12, 1995, private pilots and aircraft owners Malvem J. Gross, Jr.
and Paul Jimison filed a class action in the United States District Court for
the Northern District of Califomia, on behalf of themselves and all other owners
of aircraft with Teledyne Continental 520 and 550 series piston engines who used
Mobil AV-1 oil, and against defendants Mobil Corporation, Mobil Oil Corporation,
Mobil International Aviation and Marine Sales, Inc. (collectively "Mobil").
Subsequently, Plaintiffs and Mobil agreed that the class action would encompass
owners of aircraft with Teledyne Continental 470 series and 360 series piston
engines as well. Plaintiffs allege that past use of Mobil AV-1 piston aircraft
engine oil -- which Mobil designed, manufactured, and marketed between
approximately 1987 and June, 1994 -- creates a continuing risk of damage to
certain models of aircraft engines manufactured by Teledyne Continental Motors,
that such damage may result in sudden in-flight engine failure, and that
affected engines should be inspected and, if necessary, repaired. Mobil denies
all of the above allegations, and particularly denies that there is a risk of
in-flight engine failure.
3. WHAT IS A CLASS ACTION?
The class action is a type of lawsuit in which one or several individuals
bring suit on behalf of all members of a group with the same or sirnilar claims,
to obtain injunctive relief or damages for all in the group. This avoids the
necessity of each individual filing his or her own separate lawsuit. Class
actions are used by the Court to decide the common issues of law or fact raised
by all claims. Class actions eliminate the potential burdens, costs and
confusion of filing multiple lawsuits and assure that all Class members share
equitably in any recovery or benefits obtained.
4. WHO IS IN THE CLASS?
On October 25, 1995, pursuant to the Federal Rules of Civil Procedure, Rules
23(a) and 23(b)(1) and (2), the Court certified the following class for trial
and settlement purposes:
All United States citizens and entities and also all persons or entities
residing in the United States who own any aircraft with Teledyne-Continental
IO-550, TSIO-550, GTSIO-550, IO-520, TSIO-520, GTSIO-520, O-470, IO-470,
TSIO-470, O-360, IO-360 and TSIO-360 piston airctaft engines in which Mobil's
AV-1 oil was used for more 150 hours of operation.
This class has been certified as a mandatory class pursuant to Federal Rules
of Civil Procedure 23(a) and 23(b)(1) and (2), which means that you may not
exclude yourself from or opt out of the class. If you are a member of the
above-defined Class your rights may be affected by this Notice.
The class was previously certified by the Court in orders dated April 28,
1995, and September 11, 1995, as a mandatory class, pursuant to Fed. R. Civ. P.
23(b)(1) and (2), and included owners of Teledyne Continental 550, 520 and 470
series aircraft engines in which Mobil oil had been used for any amount of time.
Based on discovery conducted by the parties, the parties have determined that
150 hours of past AV-1 use is a reasonable threshold for class membership. In
addition, based on discovery conducted by class counsel, the parties have agreed
that the 360 series Teledyne Continental aircraft engines in which AV-1 has been
used for more than 150 hours should be included in the class.
5. WHO REPRESENTS THE CLASS?
Plaintiffs Malvern Gross and Paul Jimison have been designated as Class
Representatives by the Court.
Class Counsel are Lieff, Cabraser, Heimann & Bemstein, and Harry V.
Lehmann of Lehmann & Chase.
Please direct any questions concerning this Notice or the proposed settlement
to Class Counsel as follows:
Mobil Engine Oil Class Counsel
c/o Michael F. Ram
LIEFF,
CABRASER, HEIMANN & BERNSTEIN
275 Battery Street, 30th Floor
San
Francisco, CA 94111
Telephone: 800-936-1009
Class counsel have been appointed by the Court to represent the interests of
the Class, and YOU WILL NOT BE CHARGED for their services. You also have
the right to hire your own attorney. If you hire your own attorney, you will be
responsible for paying that attorney's fee. You also have the right to represent
yourself before the Court.
The attorney representing Mobil in this litigation is:
Barbara A. Caulfield
LATHAM & WATKINS
505 Montgommy
Street, Suite 1900
San Francisco, CA 94111
Class Counsel believe that the proposed settlement is fair, reasonable and
adequate. Class Counsel, on behalf of plaintiffs and the Class, entered into the
settlement after weighing the subsantial benefits of the settlement against the
probabilities of success or failure and the delays that would be likely if the
case proceeded to trial.
6. WHAT ARE THE TERMS OF THE PROPOSED SETTLEMENT?
After extensive investigation of plaintiffs' claims, and as a result of
arms-length settlement discussions supervised by a neutral mediator, Plaintiffs
and Mobil have entered into a settlement agreement; which includes the
inspection protocol described in Exhibit "A" to this Notice, and compensation
for past repairs and for "loss-of-use" as also described in Exhibit "A".
The Settlement inspection program has already commenced. I'he claims
procedure is described in Exhibit "A". You start this process by sending in the
claim form attached as Exbibit "B". Prompt submission of your claim form is
important to your participation in the Settlement.
Claimants participating in the inspection aad compensation program described
in Exhibit "A" prior to an entry by the Court of a final judgment, shall execute
a release when they have completed the protocol and received value, even if the
settlement is not yet a final judgment, or if the settlement never becomes a
final judgment When the Settlement Agreement becomes fmal, all Class members and
their successors in interest shall be deemed to have released all claims against
Defendants arising out of past AV-1 use, except personal injury claims, and
claims for property damage other than damage to the engine, as set forth in the
Settlement Agrcement..
7. WHO PAYS CLASS COUNSEL'S FEES AND COSTS?
You do not pay Class Counsel's fees or costs. The proposed settlement does
not provide for, and is not conditioned on, the payment of any specific
attomeys' fees to Class Counsel. In the proposed settlement, Mobil obligated
itself to pay reasonable attomeys' fees and reasonable outlay of expenses
incurred by Class counsel.
If the Court approves the proposed settlement, the Court will decide the
amount of attorneys' fees and expenses awarded to Class Counsel. The attomeys'
fees and expenses awarded by the Court to Class Counsel will be paid solely by
Mobil and will not reduce, directly or indirectly, any of the benefits the Class
members will receive under the proposed settlement.
Class Counsel will apply to the Court for fees of $4.5 million and for costs,
to be paid by Mobil, and not to be paid by Class members. Mobil intends to
opposc the fee application.
8. DO I NEED TO DO ANYTHING TO PARTICIPATE IN THE SETTLEMENT?
Yes. You need to send in the claim form attached as Exhibit "B" no later than
three (3) months from the date on which the Court enters an order granting final
approval to the proposed settlement.
The Plaintiffs' Class counsel listed in this notice will act as your
representatives. If you wish, you may also appear by your own attomey, at your
own expense. If you want your own attorney to represent you, your attorney must
file a notice of appearance, by November 14, 1995, with the Clerk of the Court,
United States District Court for the Northern District of California, 450 Golden
Gate Avenue, San Francisco, Califomia 94102. You must also send a copy to Class
Counsel and Counsel for Mobil at the addresses listed in Question 5, above.
You may make a claim under the terms of the settlement and you may
participate in the benefits of the settlement. If the settlement is not approved
you will be bound by that result as well.
9. HOW DO I MAKE A CLAIM?
If you are a member of the Class described above, and wish to make a claim
under this settlement, you must do so according to the procedure set forth by
the Court.
To start your claims procedure, you should complete, sign and return the
claim form, attached as Exhibit "B". The deadline for sending in this form is 3
months from the date on which the Court enters an order granting final approval
to the proposed settlement.
10. HOW DO I COMMENT ON OR OBJECT TO THE PROPOSED SETTLEMENT?
You may comment in favor of or object to the proposed settlement by filing
and serving a written comment or objection. You must sign your comment or
objection personally. Any objection must state why you object to the proposed
settlement and any reason supporting your position. If you intend to appear
personally at the November 28, 1995 hearing described below you must include
with your objection a notice of your intenton to appear at the hearing. You must
mail any objection, along with any notice of intent to appear postmarked on or
before November 14, 1995. These documents should be filed with the clerk of the
court by mailing them to the following address: Clerk of the Court, United
States District Court for the Northern District of California, 450 Golden Gate
Avenue, San Francisco, California 94102, File: Gross et al. v. Mobil Corporation
et al., Case No. C-95-1237-Sl. You must also mail a copy of your objection along
with your notice of intent to appear, postmarked on or before November 14, 1995,
to Class Counsel and counsel for Mobil at the address listed in Question 5
above.
11. WHAT IS THE SETTLEMENT APPROVAL PROCEDURE?
On November 28, 1995 at 3:30 p.m., this Court will hold a hearing in the
courtroom of U.S. District Judge Susan Illston, 450 Golden Gate Avenue, San
Francisco, Califomia 94102, to determine whether the proposed settlement is
fair, reasonable, and adequate and should be approved, and the Gross lawsuit
diseased. The Court will also consider Class Counsel's application for an award
of attorneys' fees and reimbursement of costs and expenses, to be paid by Mobil
in the amount awarded by the Court. The hearing may be postponed to a later time
without further notice.
You will be represented at the hearing on the fairness of the settlement by
Class Counsel, unless you enter an appearance in person or through your own
counsel. The appearance of your own attorney is not necessary to permit
participation in the settlement.
If the proposed settlement is approved, it will be binding and will release
Mobil from any and all claims, including any claims for consumer damages or
equitable relief, arising out of or related to the Mobil AV-1 oil, that were or
could have been asserted by CIass members in the Gross lawsuit. However, the
proposed settlement does not release, dismiss, or affect any claims for personal
injury or wrongful death as an alleged result of the AV-1 engine oil; nor does
it affect damage to property other than engines.
12. WHERE DO I GET ADDITIONAL INFORMATION?
This Notice is only a summary. The full settlement agreement, the complaint,
answer and other documents filed in the Gross lawsuit can be requested, in
writing, from Class Counsel identified in Question 5 above, or can be inspected
and copied, during normal business hours, at the office of the Clerk of the
Court:
Clerk of the Court
United States District Court
450 Golden
Gate Avenue
San Francisco, CA 94102
File: Gross, et al. v. Mobil
Corporation, et al.
Case No. C-95-1237 SI
ALL QUESTIONS ABOUT THIS NOTICE, THE CLASS ACTION, OR THE PROPOSED
SETTLEMENT SHOULD BE DIRECTED TO CLASS COUNSEL IDENTIFIED IN QUESTION 5 ABOVE.
PLEASE DO NOT CALL OR WRITE THE COURT OR THE CLERK'S OFFICE FOR INFORMATION.
DATED: October 25, 1995
(signed)
THE HONORABLE SUSAN ILLSTON
UNITED STATES DISTRICT JUDGE