A $14 million settlement has been reached in the case of Hamilton v. Ohio Savings Bank originally filed in the Court of Common Pleas in Cuyahoga County, Ohio in 1985. According to the records of Ohio Savings Bank (now known as AmTrust Bank) you have or had a residential mortgage that originated with the bank during the period from 1970 through the mid-1990s on which interest was calculated using a method known as the 365/360 method. Because this method of calculating interest was used by the Bank you may have been charged more in interest than your mortgage note allowed.

The lawsuit was filed in 1985 on behalf of all residential mortgage customers with loans initiated between 1970 and the mid 1990s where interest was calculated using a method known as the 365/360 method. This lawsuit is about the bank’s methods of calculating monthly interest and payments on residential mortgage loans and whether the bank breached its contracts with class members and/or violated the law by using those methods.

The court did not decide in favor of Plaintiffs or Defendant. Instead, both sides agreed to a settlement. That way, they avoid the cost and uncertainty of a trial and the people affected who submit a claim form will get compensation. The Class Representatives and the attorneys think the settlement is best for all class members

All class members are included in the settlement. As the Notice of Class Action explained, the Class certified by the court includes all residential mortgagors who (1) obtained mortgages from the bank during or after 1970, and (2) on whose mortgages the bank calculated interest using a method known as the 365/360 method. If the bank used the 365/360 method on your loan, and your loan was executed in 1970 or later, you are a member of the Class even if you paid off the loan or no longer own the home.

The bank’s records reflect whether the bank used the 365/360 method to calculate interest on your mortgage. If you file a Claim Form, those records will tell the Claims Administrator whether you are a member of the class. If you wish to check yourself, examine your mortgage note to see if it includes the following or similar language:

• “Interest shall be determined by obtaining a daily interest factor at the rate herein provided based upon a 360-day year, multiplying such factor by the actual number of days in each calendar month and applying such result against the outstanding balance of the principal sum;”
• “Such interest to be computed by applying a daily interest factor based upon a 360 day year, multiplied by the actual number of days in each calendar month, on the unpaid principal of this note;”
• “The interest due and payable for each month shall be equal to the product of the daily interest rate (based on a 360-day year and the annual interest rate then in effect) multiplied by one-twelfth (1/12th) of the actual number of days in the then current calendar year multiplied by the aggregate of the unpaid principal balance.”

These are examples only; the actual wording of the notes may vary in some cases.

If you file a Claim Form and you are a class member, you will get a payment. If you wish to know in advance whether you are a member of the Class, you can get free help by calling 1-866-300-7944.

The bank placed $14 million ($14,000,000) in an interest-bearing account for the benefit of class members and to pay the fees and costs of pursuing this lawsuit (the “settlement fund”) and has also agreed to stop charging interest on class members mortgages using the 365/360 method. Plaintiffs have agreed to release the bank from all claims regarding the allegations in the lawsuit and to dismiss the lawsuit. You can view the full settlement agreement HERE.

Class Counsel conducted extensive investigation and formal discovery of the facts relating to the claims alleged in the Class Action and retained and consulted several experts, including an expert on damages. Based upon their investigation, consultation with experts and an analysis of the claims, the bank’s defenses, and the uncertainty and delays of litigation, Class Counsel believe that the settlement is fair, reasonable, and adequate and is in the best interests of the Class. You can read the Motion for Preliminary Approval, which explains why Class Counsel recommends the settlement HERE.

You must submit a Claim Form to receive money from the settlement.

If you are a member of the class and the Court approves the settlement, you will be entitled to share in the settlement fund. In order to receive a cash award from this Settlement you must submit the claim form which was included in the settlement notice package. If you did not receive a claim form you can download one here [link]. Read the instructions carefully, fill out the form, sign it, and mail it postmarked no later than December 2, 2007. BE SURE TO CHECK THE APPROPRIATE BOX ON PAGE TWO.

The amount of your payment will depend on the number of valid claims forms that class members send in, when you obtained your loan, and how much interest you paid. Class Members who obtained mortgages between 1970 and April 1978 will receive priority. The distribution will take place after:

1. Final approval of the settlement by the Court and the expiration of any period for further review or appeal of the Court’s order of approval or the resolution of any such review or appeal;
2. Review of the Claim Forms by the Claims Administrator and the determination of the amounts recommended to be paid to Claimants;
3. Approval by the Court of the recommendations as to the amounts to be paid to Claimants.

As the Notice of Class Action explained, the lawyers representing the Plaintiffs in this case (known as “Class Counsel”) include the law firm of Boies, Schiller and Flexner, LLP, the Law Offices of Steven M. Weiss, and the law firm of Robert E. Sweeney, L.P.A. Class Counsel are experienced in handling class action lawsuits. You do not need to hire your own lawyer because Class Counsel is working on your behalf. But, you may hire a lawyer if you choose and can have that lawyer appear in Court for you if you want someone other than Class Counsel to speak for you. If you want your own lawyer, you will have to hire and pay that lawyer.

Class Counsel will ask the Court to approve a payment of up to 33 1/3 % of the settlement amount for attorney’s fees. The fees would pay Class Counsel for investigating the facts, litigating the case since 1985, and negotiating the settlement. In addition, Class Counsel will ask the Court to approve payment of up to $1.6 million in expenses. The Court may also make an award to the class representatives, George and Barbara Seidel and Francis Hamilton, based upon the time they have spent and the expenses they have incurred in pursuing this case on behalf of the class. Any amounts awarded by the Court will be paid from the settlement fund.

If you’re a Class Member, you can object to the settlement if you don’t like any part of it and you can give reasons why you think the Court should not approve it. The Court will consider your views. To object, you must send a letter saying that you object to the settlement in Hamilton v. Ohio Savings Bank. Be sure to include your name, address, telephone number, your signature, and the reasons you object to the settlement. Mail the objection to these three different places postmarked no later than November 2, 2007.

Court
Clerk of Court Cuyahoga Court of Common Pleas Justice Center 1st Floor 1200 Ontario Street Cleveland, Ohio 44113-1664
Class Counsel	Defense Counsel
William A. Isaacson, Esq. Jennifer Milici, Esq. BOIES SCHILLER & FLEXNER, LLP 5301 Wisconsin Ave., NW 8th Floor Washington, D.C. 20015	Hugh Stanley, Esq. TUCKER, ELLIS & WEST, LLP 1150 Huntington Building 925 Euclid Avenue Cleveland, Ohio 44115

 

You were provided an opportunity to exclude yourself from the class when you received the Notice of Class Action. By choosing to remain in the Class, you agreed to be bound by any judgment, whether favorable or unfavorable, entered in this case. If the settlement is approved it will result in a judgment and you will be bound by it. However, you may object to the terms of the settlement. The Court will consider your opinion but may approve the settlement over your objection. Objecting to the settlement does not mean that you will be able to sue the bank on the claims asserted in the lawsuit.

The Court will hold a Fairness Hearing at 1:30 p.m. on November 14, 2007 or such other time as may be decided by the Court. At this hearing, the Court will decide whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Honorable Judge Brian J. Corrigan will also listen to people who have asked to speak at the hearing. The Court may also decide how much to pay Class Counsel. After the hearing, the Court will decide whether to approve the settlement. We do not know how long these decisions will take.

No. Class Counsel will answer any questions Judge Brian J. Corrigan may have. But you are welcome to come at your own expense. If you mail in an objection, you don’t have to come to Court to talk about it. As long as you mailed your objection on time, the Court will consider it. You may also pay your own lawyer to attend.

You may ask the Court for permission to speak at the Fairness Hearing. To do so, you must send a letter saying that it is your “Notice of Intention to Appear in Hamilton v. Ohio Savings Bank.” Be sure to include your name, address, telephone number, and your signature. Your Notice of Intention to Appear must be postmarked no later than November 2, 2007 and be sent to the Clerk of Court, Class Counsel, and Defense Counsel, at the addresses in question 13. You cannot speak at the hearing if you excluded yourself from the class.