NOTICE OF PROPOSED SETTLEMENT OF CLASS ACTION

Teresa Keeling and Kevin Keeling, on behalf of themselves and all others similarly situated, v. The Huntington National Bank, Case No. 3:23-cv-00352 (U.S.D.C. Southern District of WV)

What is the Lawsuit About?

The Lawsuit alleges that Defendant improperly assessed fees for property inspections and attorney’s fees after Settlement Class Members became delinquent on their mortgage loans and that Defendant sent demands for payment referencing an amount less than the previously accelerated full mortgage balance. 

Defendant denies that it acted improperly or did anything wrong and maintains that it always complied with both federal and state law.  Defendant has agreed to the Settlement solely to avoid the burden, expense, risk, and uncertainty of continuing the Lawsuit.

What is a Class Action and Who is Involved?

In a class action lawsuit, one or more people called “Named Plaintiffs” or “Class Representatives” sue on behalf of other people who have similar claims. The people together are a “Class” or “Class Members.” This Lawsuit and Settlement involve a group of Class Members who have mortgages serviced by HNB on residential properties located in West Virginia and were assessed a property inspection fee, and/or fees coded as attorney’s fees during the period from April 24, 2019 to September 30, 2023, and/or were sent demands for payment referencing an amount less than the previously accelerated full mortgage balance during the period from April 24, 2019 to November 15, 2023.   Teresa Keeling and Kevin Keeling are the Class Representatives and represent the Settlement Class Members.  The Huntington National Bank is the Defendant.

Why is this Lawsuit a Class Action?

Plaintiffs filed this case as a class action. Following the Parties’ Settlement and the Court’s preliminary approval order approving the Settlement, the Court approved three Settlement Subclasses: the Property Inspection Subclass, the Post Acceleration Subclass, and the Attorney Fees Subclass. The Court found that the Settlement Class satisfies the requirements of Federal Rule of Civil Procedure 23, which governs class actions in Federal courts.

Who is Included in the Settlement?

The parties’ records indicate that you had or have a residential mortgage loan secured by real property in West Virginia and serviced by HNB, and HNB assessed on your account one more property inspection fees or attorney’s fees after becoming delinquent on your mortgage loan, and/or that HNB sent you demands for payment referencing an amount less than the previously accelerated full mortgage balance. The Settlement Class includes three subclasses defined as follows: 

Property Inspection Subclass: those borrowers identified in discovery to whom HNB assessed one or more property inspection fees.  Discovery has revealed and the parties agree that HNB charged property inspection fees to approximately 1,600 accounts from April 24, 2019 through September 30, 2023.

Post Acceleration Statements Subclass: those borrowers identified in discovery to whom HNB, after accelerating their loan, issued a demand or billing statement that contained an amount due of less than the full accelerated balance of the loan.  Discovery has revealed and the parties agree that approximately 200 such accounts were impacted during this period from April 24, 2019 through November 15, 2023.

Attorney Fees Subclass:  those borrowers identified in discovery to whom HNB assessed fees coded as attorney’s fees.  Discovery has revealed and the parties agree that HNB charged attorney’s fees to approximately 80 accounts from April 24, 2019 through September 30, 2023.

What Does the Settlement Provide?

1. Fee Waivers and Cash Payments to Class Members. 

   Should this Settlement be fully and finally approved by the Court, HNB will provide various forms of consideration to Class Members.  First, HNB will waive outstanding fees included in the Property Inspection Subclass and the Attorney Fees Subclass in the approximate amount of $158,000.  If you currently owe property inspection fees included in the Property Inspection Subclass or attorney’s fees included in the Attorney Fees Subclass to HNB and the Settlement is fully and finally approved, you have or will receive notice of this waiver through your regular account statements.  HNB is also refunding attorney’s fees included in the Attorney Fees Subclass that have been paid by Class Members in the approximate amount of $30,000.  If you paid attorney’s fees included in the Attorney Fee Subclass to HNB, HNB will directly refund your payments within 30 days of this Settlement taking effect.  In addition, HNB will establish a cash fund in the amount of $535,000.  The total consideration or the Total Settlement Fund, including waived fees, refunded fees, and cash payments, is $723,000.   

   Each Settlement Class Member will receive a pro rata share of the cash fund. Only one Settlement payment will be made per account. The payment will be made jointly to co-borrowers and sent to the primary individual listed on the account.

   After reduction for anticipated administrative costs as well as any attorney’s fees, costs, and service award granted by the Court, the estimated disbursement to each Class Member from the cash fund will be $140.00.  This estimate assumes all Class Members participate in the Settlement, is merely an estimate and is subject to necessary modifications. 

   Please understand that these sums may be taxable, that such tax consequences are further described in the Settlement Agreement, and that counsel is not giving you any tax advice. You are encouraged to seek tax advice without delay from a tax professional.

2. Service Award. The Plaintiffs who brought this lawsuit, Teresa Keeling and Kevin Keeling, will each request a service award of $2,500.00, for serving as class representatives.

3. Attorney’s Fees and Costs. Class counsel are Bordas & Bordas and Klein & Sheridan, LC. They will request attorney’s fees of $241,000 or one-third the total amount of the Total Settlement Fund, plus litigation costs of $15,936.21. 

4. Opinion of Class Counsel. Class counsel considers it to be in the best interest of the class to enter into this Settlement on the terms described in light of the potential recovery, Defendant’s defenses, and the uncertainties of continued litigation.

5. Release.  Each person who person who remains in the Settlement Class and receives Settlement benefits will, if the Settlement is approved, provide a release to (1) Defendant HNB; (2) each of HNB’s past, present, or future subsidiaries, parent companies, divisions, affiliates, partners or any other organization units of any kind doing business under their names, or doing business under any other names, or any entity now or in the past controlled by, controlling, or under the common control with any of the foregoing and doing business under any other names, and each and all of their respective affiliates and subsidiaries, and each of their respective predecessors, successors, and assigns; and (3) each of the present and former officers, directors, partners, shareholders, agents, employees, attorneys (including any consultants hired by counsel), advisors, independent contractors, representatives, beneficial owners, insurers, accountants, heirs, executors, and administrators, and each of their respective predecessors, successors, and assigns of any person or entities in subparts (1) or (2) hereof.  The release shall include any and all actions, causes of action, claims or demands, offsets, setoffs, suits, damages, lawsuits, costs, relief for contempt, losses, attorney’s fees, expenses, or liabilities of any kind whatsoever in law or in equity, for any relief whatsoever, including monetary, sanctions or damage for contempt, injunctive, or declaratory relief, rescission, general, compensatory, special, liquidated, indirect, incidental, consequential, or punitive damages, equitable relief, as well as any and all claims for treble damages, penalties, interest, attorney’s fees, costs, or expenses, whether a known or Unknown Claim, suspected or unsuspected, contingent or vested, accrued or not accrued, liquidated or unliquidated, matured or unmatured, that have been or could have been asserted in any form by Settlement Class Members against HNB, whether statutory or regulatory violations, negligence, contractual in nature, equitable, or existing under common law and any damages (as set forth above) proximately caused by or otherwise attributable to, directly or indirectly, whether or not currently known, arising out of, based upon or related to the class claims set forth in the First Amended Class Action Complaint regarding property inspection fees, attorney’s fees or representations of amounts due following acceleration, or otherwise pertaining to the collection or attempted collection of the Released Fees.  Released Fees as defined in the Class Settlement and Release Agreement means property inspection fees included in the Property Inspection Fees Subclass or fees coded as attorney’s fees included in the Attorney Fees Subclass that were assessed and/or paid by HNB on the Class Accounts.

6. Binding Effect of Class Judgment.  Upon conclusion of the Settlement, the judgment of the Court will be binding upon all Class Members who do not opt out of the Settlement.

The Court’s Fairness Hearing

The U.S. District Court for the Southern District of West Virginia will hold a hearing in this case on June 10, 2025 at 10 a.m., in the Courtroom of the Honorable Robert C. Chambers, United States Courthouse, 845 Fifth Avenue, Huntington, West Virginia, 25701. Class Members do not need to attend the hearing. The hearing date and time may be changed without further notice. If you wish to attend the hearing, you should call the Settlement Administrator in advance to confirm the day and time.

What Are Your Options?

(1) Do Nothing. To accept the Settlement, you do not need to do anything.  If the Settlement is approved, you will be bound by all of its terms, and a check will be mailed to you. If you change your address, please inform the Settlement Administrator at the address below; 

(2) Exclude Yourself.  You may “opt out” and exclude yourself from the Settlement. If you opt out, you will not receive any cash payment, and you will not release any claims you may have against Defendant. If you opt out, you will be free to pursue whatever legal rights you may have by pursuing your own lawsuit against Defendant at your own risk and expense.  To exclude yourself from the Settlement, you must mail a letter to the Settlement Administrator (address below) stating that you wish to do so. Your letter must: (a) identify the case name; (b) identify the name and address of the person requesting exclusion; (c) be personally signed by the person requesting exclusion; and (d) contain a statement that indicates a desire to be excluded from the Settlement Class, such as “I hereby request that I be excluded from the proposed Settlement Class in the Action.”  You must postmark your letter no later than May 13, 2025; OR

(3) Object to the Settlement.  If you are a member of the Settlement Class, you have the right to object to the terms of the Settlement. If you object to the Settlement, you must file your Objection together with any Notice of Intention to Appear with the Court by May 13, 2025.  Your Objection must include: (a) the case name and number; (b) the name, address, telephone number of the Settlement Class Member objecting and, if represented by counsel, of his/her counsel; (c) the basis for objection; and (d) a statement of whether he/she intends to appear at the Final Approval Hearing, either with or without counsel.  You must serve copies of the foregoing and all other papers in support of such objection(s) upon the following:

Court:

Clerk of Court
U.S. District Court for the Southern District of West Virginia
845 Fifth Avenue, Room 101
Huntington, WV 25701

Settlement Administrator:  

David W. Epperly
P.O. Box 673
Charleston, WV 25323
1-(888)-925-4968

Class Counsel:

Benjamin Sheridan
Jed R. Nolan 
KLEIN & SHERIDAN, LC
3566 Teays Valley Road
Hurricane, WV 25526
(304) 562-7111

Jason E. Causey
BORDAS & BORDAS
1358 National Road
Wheeling, WV 26003
(304) 242-8410

HNB’s counsel:

Elizabeth Zwickert Timmermans
MCGUIREWOODS LLP
501 Fayetteville Street
Suite 500
Raleigh, NC 27601
(919) 755-6576

Matthew L. Ward
DINSMORE & SHOHL
P. O. Box 2185
Huntington, WV 25701
(304) 529-6181

You do not need to appear at the fairness hearing to object to the Settlement.  If you desire to appear at the fairness hearing, a Notice of Intention to Appear is required and must include copies of any papers, exhibits, or other evidence, including a list of witnesses, that you will present to the Court in connection with the fairness hearing.  If you do not timely file a Notice of Intention to Appear in accordance with the deadlines and other specifications set forth in the Class Settlement and Release Agreement and this Notice, you will not be entitled to appear or present evidence at the fairness hearing.    

Do I Have a Lawyer in This Case?

The Court has appointed the following Class Counsel to represent the Class, who may be contacted at: Benjamin Sheridan & Jed R. Nolan, Klein & Sheridan, LC, 3566 Teays Valley Road, Hurricane, WV 25526; Jason E. Causey, Bordas & Bordas, 1358 National Road, Wheeling, WV 26003. You may hire your own attorney, but only at your own expense.

Should I Get My Own Lawyer?

You do not need to hire your own lawyer because Class Counsel is working on your behalf. But, if you want your own lawyers, you may hire one who it will be your responsibility to pay. For example, you can ask him or her to appear in Court for you, if you want someone other than Class Counsel to speak for you.

How Will the Class Counsel be Paid?

Class Counsel will request the Court to grant an award of Attorney’s Fees in the amount of $241,000.

Contact Information for Settlement Administrator

Settlement Administrator
Epperly Re:Solutions
P.O. Box 673
Charleston, WV 25323