NOTICE REGARDING RIGHT TO BENEFIT FROM CLASS ACTION SETTLEMENT
If you (or a property you own) received heating fuel from Peterson’s Oil Service, Inc. from July 5, 2016 – July 5, 2019, a proposed class action settlement may affect your rights.
A State Court authorized this Notice. This is not junk mail, an advertisement or a solicitation from a lawyer.
A Settlement Agreement has been reached in a class action lawsuit alleging that Peterson’s Oil Service, Inc. (“Peterson Oil”), Inc., Howard Peterson, Kristen Peterson, and Sharon Peterson (collectively, the “Defendants”) committed breaches of contract, negligence, fraud and unfair and deceptive business practices when they blended elevated levels of biodiesel into customers’ heating oil, causing customers’ heating systems to shut down and suffer long-term damages and causing customers to pay more for the fuel than it was actually worth. Peterson Oil’s records show that you may be a class member under the Settlement Agreement reached in the case.
This settlement is only a partial settlement of the claims in the case and will not resolve the entire case. You could be entitled to additional relief, which the Plaintiffs and Class Counsel will continue to pursue on your behalf (you do not need to do anything to obtain additional relief).
The partial settlement has been preliminarily approved by the Court.
A settlement fund of $5,600,000.00 has been established to pay: (i) Class Members, (ii) attorneys’ fees, (iii) the costs of litigation, (iv) incentive awards to the nine class representatives (the plaintiffs captioned above), who brought the case, and (v) settlement administration costs. As a Class Member, you may be entitled to a share of the settlement. The final payment will depend on: the total number of valid and timely claims filed by all Class Members; and the amount of Peterson Oil’s fuel you received between July 5, 2016 and July 5, 2019.
Your legal rights are affected whether you act or do not act so please read this notice carefully.
Why am I receiving this notice?
You are receiving this notice because Peterson Oil’s records indicate that the address to which this notice was mailed received fuel from Peterson Oil between July 5, 2016 and July 5, 2019 (the “Settlement Period”). This notice explains that there has been a proposed class action settlement (that will only resolve claims for property damage during the Settlement Period), which may affect you if you own heating equipment that received Peterson Oil’s fuel in the Settlement Period. If you do own such heating equipment, you may have legal rights and options that you may exercise before the Court decides whether to grant final approval of the settlement.
What is this lawsuit about?
The lawsuit alleges that the Defendants committed breaches of contract, negligence, fraud, and unfair and deceptive business practices when they blended elevated levels of biodiesel into customers’ heating oil, causing customers’ heating systems to shut down and suffer long term damages and causing customers to pay more for the fuel than it was actually worth. Specifically, among other things, the Plaintiffs allege that the fuel the Defendants actually delivered to the Plaintiffs and the overwhelming majority of customers: (i) did not meet industry standards for heating oil and was not rated for use in any major manufacturers’ oil tanks or heating equipment; (ii) was less efficient and contained fewer BTUs than ordinary heating oil, unknowingly forcing customers to purchase more fuel; (iii) caused customers’ heating equipment to shut down; and (iv) caused long-term damage to customers’ heating equipment.
The Defendants deny these allegations.
Importantly, as will be detailed below, this Settlement only resolves claims that Peterson Oil’s fuel caused heating equipment to shut down during the Settlement Period and/or caused long-term damage to heating equipment during the Settlement Period. Claims for purely economic damage and claims for property damage that occurred outside of the Settlement Period are not being settled at this time. You could still be eligible to receive funds from any future resolution of these claims, whether it be at trial or in a settlement.
Why is this a class action?
In a class action, Class Representatives (in this case the nine individuals captioned as Plaintiffs above) sue on behalf of a group — or a “Class” — of people. Here, the Class Representatives sued on behalf of all Peterson Oil customers who received fuel from Peterson Oil containing more than five percent (5%) biodiesel at any point since 2012. Together, all of these people are called a “Class” and each one of them is a “Class Member.” One Court will resolve the claims of all Class Members.
The Settlement described in this notice only impacts a portion of the Class – those customers who received fuel from Peterson Oil containing more than five percent (5%) biodiesel at any point between July 5, 2016 and July 5, 2019 (the “Settlement Class,” each such customer a “Settlement Class Member.”)
Why is there a settlement?
To avoid the cost, risk and delay of litigation, the Parties reached a settlement agreement to resolve certain of the Plaintiffs’ and the Class Members’ claims (described herein) without further litigation. The Settlement also allows Settlement Class Members to obtain compensation for their heating equipment shutdowns and damage to their heating equipment without further delay while the remaining claims are litigated on the entire Class’s behalf.
Why is the settlement partial?
The proposed settlement is entered into between Plaintiffs and Philadelphia Indemnity Insurance Company (“PIIC”), which insured the Defendants for property damages from July 5, 2016 – July 5, 2019. The claims released in this settlement are for those property damages alleged to have occurred in that period.
How do I know if I am part of the Settlement Class?
You are part of this Settlement Class if you: (1) received heating fuel from Peterson Oil between July 5, 2016 and July 5, 2019; and/or (2) own (or owned) heating equipment that received heating fuel from Peterson Oil between July 5, 2016 and July 5, 2019.
Are Cleghorn Oil Customers in the Settlement Class?
Yes. Cleghorn Oil was owned and operated by Peterson’s Oil Service, Inc. at all relevant times. Accordingly, if you were a Cleghorn Oil customer, you are considered a Peterson Oil customer for purposes of this case.
What are the benefits of the settlement to me?
If you and/or heating equipment you own(ed) received heating fuel from Peterson Oil between July 5, 2016 and July 5, 2019, the settlement entitles you to up to (2) payments:
- Payment for each time you (or a property you own) lost heat and/or hot water and/or you paid for repairs to heat/hot water equipment between July 5, 2016 and July 5, 2019. If you (or a property you own) lost heat or hot water (a “No Heat Incident”) and/or you paid to repair a No Heat Incident between July 5, 2016 and July 5, 2019, the Settlement provides for monetary compensation of up to $180 per No Heat Incident without documentation (you only need to verify the dates of each No Heat Incident). If you incurred more than $500 in out-of-pocket costs as the result of any No Heat Incident, you may submit supporting documentation for the full amount of those out-of-pocket costs.
The final payment you receive for No Heat Incidents will depend on the total number of valid and timely claims filed by Settlement Class Members. The Settlement calls for at least$594,996.67, representing 17.33% of the funds available for distribution to the Settlement Class (after paying attorneys’ fees and litigation costs, the Class Representatives incentive payments and administration costs), to be set aside to pay no heat claims (the “Heat Loss Fund”). In the event the total no heat claims exceed that amount, each Settlement Class Member with a timely and valid claim will receive their pro rata share of the Heat Loss Fund. Specifically, each valid and timely Heat Loss Fund claimant will receive a percentage of the Heat Loss Fund equal to: the total value of their No Heat Incidents during the Settlement Period (based on their claims submissions); divided by the total value of No Heat Incidents claimed by all Settlement Class Members during the Settlement Period. In the event the total value of no heat claims does not exceed the amount set-aside for the Heat Loss Fund, each valid and timely Heat Loss Fund claimant will receive the total value of their No Heat Incidents (based on their claims submission). Any leftover balance of the amount set aside for the Heat Loss Fund will be added to the Corrosion Fund (discussed below).
2. Payment for corrosion damage to your heating equipment. If you own heating and/or hot water equipment that received deliveries of Peterson Oil’s fuel between July 5, 2016 and July 5, 2019, you will receive a payment for corrosion damage to your heating equipment.
The final payment you receive will depend on the amount of Peterson Oil’s fuel you received, as a percentage of the amount of Peterson Oil’s fuel all other Settlement Class Members received as a whole. The Settlement calls for at least $2,838,336.67, representing 82.67% of the funds available for distribution to the Settlement Class (after paying attorneys’ fees and litigation costs, the Class Representatives incentive payments and administration costs), to be set aside to pay for corrosion damages Plaintiffs allege Peterson Oil’s fuel caused to all Releasing Class Members’ heating equipment (the “Corrosion Fund”). Each Settlement Class Member will receive a percentage of the Corrosion Fund equal to: their total gallons of fuel purchased during the Settlement Period (based on Peterson Oil’s delivery records produced in this case); divided by the combined total gallons of fuel purchased by all Settlement Class Members during the Settlement Period.
How do I get these benefits from the Settlement?
Payments may be obtained as follows:
- Heat Loss Payments. To obtain a payment for No Heat Incidents, you must submit a claim form. Claim Forms can be submitted HERE. You may also request a paper claim sent by mail by calling 1-844-625-7313. Read the instructions carefully, fill out the Claim Form, and either submit it online or mail it postmarked no later than July 22, 2024.
You must follow all instructions in the claim form AND postmark it or submit it online by July 22, 2024 to be eligible for a heat loss payment.
- If the Settlement is given final approval at the final fairness hearing (discussed below), after all valid claims forms are counted, the Settlement Administrator will calculate your heat loss payment and mail that amount at the address provided in your claim form. If you move or change addresses you should kindly notify the Settlement Administrator (at the address provided below) to ensure you receive your payment and/or any future notices regarding these claims.
- Corrosion Payments. If a property you own received Peterson Oil’s fuel during the Settlement Period, but you did not order or purchase the fuel, you must submit a claim form by July 22, 2024 to receive a payment for corrosion damage. This might occur if, for example: (1) you are a landlord and your tenant purchased Peterson Oil’s fuel and/or you purchased a property (and its heating equipment) from a Peterson Oil customer.
Claim Forms can be submitted HERE. You may also request a paper claim sent by mail by calling 1-844-625-7313. Read the instructions carefully, fill out the Claim Form, and either submit it online or mail it postmarked no later than July 22, 2024.
If a property you own received Peterson Oil’s fuel during the Settlement Period, but you did not order or purchase the fuel, you must follow all instructions in the claim form AND postmark it or submit it online by July 22, 2024 to be eligible for a corrosion damage payment.
Whomever purchased the Peterson Oil fuel delivered to any address for which you submit a claim will be sent a copy of your claim form and given an opportunity to dispute your claim. If such a dispute arises, the Settlement Administrator would contact you to explain the dispute and that process.
If you do not receive such a notice from the Settlement Administrator and the Settlement is given final approval at the final fairness hearing (discussed below), the Settlement Administrator will calculate your corrosion payment and mail it to the address listed in your claim form. If you move or change addresses, please notify the Settlement Administrator (at the address provided below) to ensure you receive your payment and/or any future notices regarding these claims.
What should I do if I do not own the heating equipment that used Peterson Oil’s fuel?
If you do not own (and never did own) the heating equipment at the location to which Peterson Oil delivered fuel, you are not eligible for a corrosion damage payment. This could occur if you are a tenant or have sold the property to which Peterson Oil’s fuel was delivered to someone else. You should update your information and indicate the individual or entity who owns the impacted heating equipment HERE by no later than July 22, 2024.
If you accept a corrosion damages payment, you are verifying that you are the owner of the heating equipment at the location the fuel was delivered and are the proper recipient of the settlement funds.
What am I giving up to receive these benefits?
If the Settlement becomes final, you will not be able to sue or be part of any other lawsuit against the Defendants for property damages during the Settlement Period.
Do I have a lawyer in this case?
The Court has appointed Jeffrey Strom, Esq., John Regan, Esq. and Christopher DeMayo, Esq. to represent the Class as Class Counsel. You do not have to pay Class Counsel or anyone else to participate. Class Counsel’s fees and expenses will be deducted from the common fund. By participating in the Settlement Class, you agree to pay Class Counsel up to 1/3 (33.3%) of the total recovery in attorneys’ fees, as well as expenses they have incurred litigating the case since May 2019. The total amount will ultimately be determined by the Court.
Will this Settlement End the Case?
No. Damages that took place outside the Settlement Period are not being settled and/or released. In other words, if a Settlement Class Member was a Peterson Oil customer from July 5, 2012 until July 4, 2016 and/or after July 5, 2019, they will still be eligible to recover damages (at a future trial or in a potential future settlement) that they incurred during those timeframes.
What’s more, the current settlement does not resolve all claims during the Settlement Period. Indeed, it does not release: claims asserted by the Class for economic damages incurred between July 5, 2016 and July 5, 2019 or any other time period. The claims for economic damages are not insured and, therefore, not covered by this settlement with PIIC. The proposed settlement expressly preserves those claims for your and the Class’s benefit moving forward and Plaintiffs, through their undersigned counsel, intend to continue vigorously prosecute those claims.
What if I was a Peterson Oil Customer and/or suffered property damage outside the Settlement Period?
You may have additional claims that are not being resolved through this settlement, but are currently being prosecuted as part of this Class Action. As noted above, this settlement does not resolve claims: (1) for property damage that occurred outside the Settlement Period; and/or (2) any claims for economic damages. Thus, if you purchased fuel from Peterson Oil outside of the Settlement Period and/or suffered heating equipment damage outside of the Settlement Period, you have claims that are not being resolved through this settlement. You do not need to do anything to pursue those claims, however. The Court in this case has already certified that those claims are appropriate for resolution on a class basis. Plaintiffs and Class Counsel intend to continue to vigorously prosecute those claims on your and the Class’s behalf. If/when recovery is obtained for those claims, you will receive additional information.
If you move or change addresses, please notify the Settlement Administrator (at the address provided below) to ensure you receive future notices regarding these claims.
How much will the Class Representatives Receive?
The Class Representatives will receive their portion of the settlement as Class Members and also receive an incentive award for having pursued this action. The Class Representatives have done a great deal on behalf of and for the benefit of the Class since May 2019 and have invested many hours of their time participating in the litigation and assisting Class Counsel. Any incentive payment is subject to Court approval. The Class Representatives will request an Incentive Award of $5,000 each, for a total of $45,000 in Incentive Awards.
What are my options?
OPTION 1
Do nothing. Be bound by the Settlement and forego the opportunity to bring claims for property damage caused by Peterson Oil’s fuel during the Settlement Period.
If you do nothing, you will not receive any payments unless you were the Peterson Oil customer of record during the time period(s) your property was receiving Peterson Oil fuel.
If you own heating equipment that received Peterson Oil’s fuel that you did not order/purchase, between July 5, 2016 and July 5, 2019, and the Settlement becomes final, you will be legally bound by all orders and judgments of this Court even if you do nothing. By doing nothing, you give up any rights to sue the Defendants separately about the same claims being waived in this settlement.
OPTION 2
Submit One or More Claims Forms by July 22, 2024.
By submitting a Claim Form for No Heat Incidents, you may recover a payment for your out-of-pocket expenses and inconveniences associated with occasions where you lost heat and/or hot water due to Peterson Oil’s Fuel during the Settlement Period. This is the only way to claim and receive compensation for your out-of-pocket expenses and inconveniences associated with No Heat Incidents during the Settlement Period.
Likewise, if you were not the Peterson Oil customer when a property you own received Peterson Oil’s fuel during the Settlement Period, submitting a claim form is the only way to claim and receive compensation for corrosion damage to heating equipment you own. This might occur if, for example: (1) you are a landlord and your tenant purchased Peterson Oil’s fuel; and/or (2) you purchased a property (and its heating equipment) from a Peterson Oil customer.
If you submit timely and valid Claim Forms and the Settlement becomes final, you will receive a payment for your no heat costs and/or a payment for your pro rata portion of corrosion damages.
As explained above, you must follow all instructions in the claim form AND Postmark it or submit it online by July 22, 2204 to be eligible for a heat loss payment.
OPTION 3
Object by June 7, 2024. If you received deliveries of Peterson Oil’s fuel between July 5, 2016 and July, 2019 and/or own heating equipment that received deliveries of Peterson’s fuel between July 5, 2016 and July 5, 2019, you may object to any aspect of the proposed settlement.
- Objection procedures. Settlement Class Members who wish to object (“Objector”) to the settlement must do so in writing. To be considered, a written objection must be mailed to the Settlement Administrator via First-Class United States Mail, postage prepaid, and be received by the Settlement Administrator by June 7, 2024. The written objection must include the words, “I object to the settlement in the Peterson Oil Partial Class Action Settlement,” or something similar as well as all reasons for the objection. The written objection must also include the name, address and telephone number(s) of the Settlement Class Member. You also may request in writing to appear at the Fairness Hearing on July 16, 2024.
- Right to be heard at the fairness hearing. A Settlement Class Member who files objections to the settlement also has the right to appear at the Fairness Hearing for Final Approval either in person or through counsel hired by the Objector, at the Objector’s sole cost and expense. An Objector who wishes to appear or speak at the Fairness Hearing for Final Approval must state his or her intention to do so in writing on his or her written objections at the time he or she submits his or her written objections by including the words, “I intend to appear and speak at the fairness hearing,” or something similar. Objectors may withdraw their objections at any time. Except as otherwise permitted by the Court, no Settlement Class Member may be heard at the Fairness Hearing for Final Approval unless he or she has filed a timely objection that complies with all procedures provided in this paragraph and the previous paragraph. Except as otherwise permitted by the Court, no Settlement Class Member may present an objection at the Fairness Hearing for Final Approval based on a reason not stated in his or her written objections.
All objections should be mailed to:
Peterson Oil Settlement
c/o Optime Administration, LLC
PO Box 3206
Brockton, MA 02304
The Fairness Hearing
The Court will hold a fairness hearing on July 16, 2024 at 2:00 p.m. in Suffolk County Superior Court, Courtroom 1017, 3 Pemberton Square, Boston, MA 02108. The purpose of the hearing will be for the Court to determine whether the proposed settlement is fair, reasonable and adequate and in the best interests of the Settlement Class. The Court will also rule on applications for compensation for Class Counsel and incentive awards for the Class Representatives. At that hearing, the Court will be available to hear any objections and arguments concerning the fairness of the proposed settlement.
YOU ARE NOT REQUIRED TO ATTEND THIS HEARING TO BENEFIT FROM THIS SETTLEMENT. The hearing may be postponed to a later date without notice.
Settlement Administrator
The Court has appointed Optime Administration, LLC, to act as an independent qualified Settlement Claims Administrator to: process this settlement; resolve any dispute concerning a Settlement Class Member’s eligibility to participate in the Settlement and/or his or her share of the Settlement proceeds; and make payments to Settlement Class Members. The fees and costs of the Settlement Claims Administrator shall be paid from the Settlement proceeds.
The Settlement Administrator is also available to answer any questions you may have about the Settlement, this notice, completing claims forms and/or settlement payments: