Haynes Properties, LLC, et al. v. Burley Tobacco Growers Cooperative Association

Case No. 20-CI-332

COMMONWEALTH OF KENTUCKY, Fayette Circuit Court, Fourth Division

What's New?

Latest update: October 5, 2024

Recent changes include updates about:

In addition to the Updates (below), this website focuses on information about distributions and other steps following the Court's approval (with modifications) of the dissolution settlement in July 2021.

Updates

10/5/24: Dissolution distributions finished

The final distribution of the Co-op’s net dissolution proceeds to Class members is now finished, and any checks still outstanding from this distribution have been voided.

A 1/24/24 Court Order provided for a final disposition of all remaining net dissolution proceeds; there will be NO MORE distribution to Class members. There have been three distributions to 2603 eligible Class members:

1st 2021-22 $ 5,670.00
2nd Nov 2022 $ 3,930.00
3rd Apr 2024 $ 546.00

If you received less than the share amounts listed above, then TAGS fees owed to the Co-op were deducted from your share; once all those fees were deducted, you were sent a check or checks for the remaining amounts.

10/2/24: Settlement Administration ending

In November 2020, the Court approved the selection of a specialized company to be the Settlement Administrator for various functions in connection with notifying potential Class members, collecting Class eligibility documentation, and — after the Court approved a settlement involving the dissolution of the Co-op — holding dissolution proceeds and other funds, issuing distribution checks, and making required reports to the IRS. The Settlement Administrator has completed these functions, and by Order entered 9/27/24, the Court has authorized and directed the Settlement Administrator to turn over any remaining funds and close out its administration. It is expected that the company will wrap up its administration before the end of 2024.

If you have a question about the Settlement Administrator or its administration, contact a Class Counsel team member by email (classcounsel@mcbrayerfirm.com) or phone (859-551-3622).

4/5/24: Special Fund distribution; objectors’ claim

In the fourth week of October 2023, distribution checks of $453.89 each went out to qualifying Class members who presented on-time, valid elections for this payment from a special Fund (see list by Notice ID). Checks that were still outstanding from this distribution have been voided, and the special Fund distribution is over.

An appeal has been taken by objectors to have fees paid out of the special Fund to their attorneys — H.W. Graddy & Associates. BE AWARE that if the nearly $100,000 fee requested by the Graddy law firm were awarded, this would work out to nearly $43 per class member who elected to participate in this special Fund distribution. The appeal is ongoing; a decision by the Court of Appeals may be issued in 2024 or in 2025. See 6/26/23 update below and FAQ #10 for more information about the appeal.

9/30/23: Co-op ceases business and ownership

By the end of September 2023, all business of the Co-op had ceased and it no longer held any funds or other assets. The net proceeds from its dissolution — beyond the first two distributions to Class members — were out of the Co-op’s hands and being held by others in escrow, subject to the Court’s orders or review about their payment or disposition. Money has also been set aside for any further expense in completing the Co-op’s dissolution or for representing it in this case.

6/26/23: Appeal filed over denial of attorney-fee request

Among those objecting in early 2021 to the proposed settlement’s provision for a $1.5 million grant to a tobacco liaison/advocacy nonprofit, were six people represented by the H.W. Graddy & Associates law firm. That law firm asked for an attorney fee award of a percentage of the Fund. The Court denied the request, and on June 26, 2023, the law firm’s six clients appealed from that denial to the Kentucky Court of Appeals. Proceedings on other issues continue in the Fayette Circuit Court. For more details about the appeal, see FAQ #10.

Archives

Archives (storage pages) have been created for convenient reference to past important documents — Court Orders and other filings relating to definition and preliminary certification of the Settlement Class, the Court's consideration of the proposed settlement and objections filed to the proposal, and procedural and other issues resolved by Court orders entered before July 1, 2022.

Links in the archived documents may have been disabled. For example, links for submission of documents or to check on class membership are inoperable. It is too late to apply for Settlement Class membership or establish eligibility to share in distributions.