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Frequently Asked Questions THESE QUESTIONS AND ANSWERS ARE PROVIDED TO POTENTIAL CLAIMANTS BY THE ATTORNEYS WHO REPRESENT THE CLASS. THEIR NAMES, ALONG WITH THE NAMES OF THE DEALERS WHO ACTED AS CLASS REPRESENTATIVES IN THE LAWSUIT BROUGHT BY EXXON DEALERS AGAINST EXXON, APPEAR BELOW. For information regarding 2007 payments click here. BACKGROUND QUESTIONS: Q. What is a class action lawsuit? A. A class action lawsuit is a suit brought by one or more individuals (the "class representatives") who represent the interests of other persons (referred to as "class members"), who have the same or similar claims. The class representatives retain attorneys ("class counsel") to represent the interests of the class. The names of class counsel and the class representatives are provided at the end of these questions and answers. Q. Why are class members entitled to receive money from Exxon? A. When Exxon implemented the Discount for Cash ("DFC") program in 1982 and began charging its dealers a 3% fee for credit card processing, Exxon agreed to reduce the wholesale price of motor fuel by an amount that, on average, would offset the fee. In this class action, the class representatives proved that Exxon failed to provide the agreed reduction in wholesale prices. During the period from March 1983 to August 1994, the average amount of the overcharge was approximately 1.3 cents per gallon on every gallon of motor fuel purchased by every direct served dealer. Q. How can I determine how much money I may recover? A. The jury awarded damages on a cents per gallon basis for each year between 1983 and 1994 as follows:
You can compute your possible recovery by multiplying the annual cents per gallon damage award times the number of gallons of motor fuel you purchased in each year from Exxon. Dealers also are entitled to prejudgment interest through October 31, 2005. The applicable interest rate depends on the law of the state in which your store was located. Because of the length of time involved, the interest portion of your recovery may be substantial. Q. Do I have to pay anything to be eligible to get my money? What about attorneys' fees? A. The amount you recover will be reduced by attorneys' fees, expenses, and class representative incentives that the Court awards class counsel and the class representatives who have successfully pursued this claim on your behalf. Q. Will I owe taxes on the money I receive? A. If you receive a payment in this case, you may owe taxes. Those tax consequences may vary, depending upon your individual circumstances. You should consult your own tax advisor as to any tax concerns you may have. Q. I am not sure whether I want to pursue a claim. If I submit a claim form, am I obligated to proceed with my claim? A. No. If, for some reason, you decide after filing a claim that you want to withdraw it, you may do so by contacting the Claims Administrator. Q. Can you explain Part 5 of the Proof of Claim form, regarding setoffs that Exxon may have against me? A. The District Court had ruled that Exxon is entitled to assert setoffs, to the extent it has any, against the claims of individual dealers. This means that if Exxon has some unpaid claim against you arising from the relationship, such as an outstanding bill for motor fuel or rent, Exxon could attempt to set off the amount of that claim against your recovery. As a result of the settlement, however, all of Exxon's set-off claims were dismissed. Q. Is it necessary to hire my own attorney? A. The decision of whether to obtain a separate attorney is up to you. The attorneys who represent the Class are available to explain the circumstances of this case and provide assistance to you, your representative or your personal attorney. In those circumstances where ownership of a particular claim may involve disputes among competing claimants and raise issues such as those arising from particular agreements where dealerships were sold or assigned, or from probate laws, divorce, insolvency and state laws affecting the rights of shareholders of dissolved corporations, you may need to retain your own attorney at some point to assist you in pursuing your claim. WHO MAY SUBMIT CLAIMS: Q. What is a "direct served" dealer? A. A "direct served" dealer is a dealer that had a Sales Agreement directly with Exxon for the purchase of motor fuel. Dealers who purchased motor fuel from a distributor, jobber or supplier other than Exxon are not "direct served" dealers and are not members of the class. If you were direct served during one period of time and jobber or distributor supplied during other time periods, you are a member of the class but your claim is limited to the gallons you purchased directly from Exxon. Q. I didn't charge different prices for cash and credit. Can I still recover? A. Yes. If you were a direct served dealer at any time between March 1, 1983 and August 28, 1994, and were party to a Sales Agreement with Exxon, you are eligible to recover regardless of whether you participated in the DFC program. Q. I sold my station to another dealer. Do I still have the right to a claim? A. In most cases the written agreements entered into between the departing dealer and new dealer at the time the station was sold will determine who owns the claim. Q. I signed a release when I closed my Exxon station. Can I still recover? A. The Court has ruled that, except in a few limited circumstances, you will still be able to recover even if you signed one of Exxon's form releases. Q. I was a dealer in Ohio. Why can't I recover? A. Unlike dealers with stores in other states, the Court has ruled that the claims of Ohio dealers are barred by the Ohio statute of limitations. Q. Do I need to save my old Exxon records? A. Yes. You should save every document you have from your time as an Exxon dealer, even if they seem unimportant. In addition, you should make efforts to obtain copies of your records from other people who may have them, including former partners, accountants, lawyers, and employees. You may end up not needing these records, but these records may enable you to demonstrate your entitlement to receive damages. Q. What was the deadline for filing claims? A. Pursuant to the settlement, all claims postmarked by December 19, 2005 will be allowed. If you did not claim by this deadline, you may be able to make a claim with the government of your state pursuant to your state's abandoned property laws. This opportunity will not arise until after the entire claims process has been completed in several years. INFORMATION ON HOW THE PROCESS MAY PROCEED: Q. When will my money come? A. The Special Master has begun adjudicating claims, and some claimants have received their Award, setting forth the amount of their recovery. Upon receipt of Awards, claimants must complete a "payment instruction form" that will provide the claims administrator with information necessary for their check to be prepared and sent. Claims will be paid 45-60 days after entry of the Award. The remainder of the claims will be processed and paid on a rolling basis over the course of the next several years. You will be contacted when the processing of your claim begins. You should be sure to keep the claims administrator up to date on your current address and telephone number(s). Q. How can I find out how the process is progressing? A. For updates on the progress of the case, you may go to the website provided by class counsel at www.exxondealerattorneys.com. CLASS COUNSEL:
CLASS REPRESENTATIVES: |
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