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Business Law
Unfair and Deceptive Business Practices
Class Action

Angela Bates v. KB Home, et al.

Published: May 7, 2011 | Result Date: Feb. 1, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 08-384954 Settlement –  $7,100,000

Court

Alameda Superior


Attorneys

Plaintiff

Steve W. Berman
(Hagens, Berman, Sobol & Shapiro LLP)

Peter B. Fredman
(Law Office of Peter Fredman PC)

Thomas E. Loeser
(Hagens, Berman, Sobol & Shapiro LLP)


Defendant

Bruce A. Abbott
(Munger, Tolles & Olson LLP )

Brad D. Brian
(Munger, Tolles & Olson LLP)

Mark H. Epstein

Shoshana E. Bannett
(Bird Marella Boxer Wolpert Nessim Drooks Lincenberg & Rhow PC)


Facts

Before March 1, 2007, a majority of purchasers of KB Home properties would pay a "contract coordination" fee of $275 to HomeSafe, which was KB's escrow subsidiary. Several California purchasers of new homes filed a class action against KB, alleging that the fee was improper.

Contentions

PLAINTIFF'S CONTENTIONS:
Plaintiffs alleged that defendant unlawfully required that consumers utilize HomeSafe for transactions within California.

Result

The parties reached a settlement amounting to $7.1 million. According to the settlement, those who paid the fee will receive a minimum of $225 of the fee reimbursed. Persons who did not pay the fee, but paid their Earnest Money Deposits to HomeSafe, will receive $50. $100,000 of the settlement went toward administration costs.


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