Residents Take Advantage of Class Action Settlement

Public meetings held to explain how people can submit claims
By Allison Sampite-Montecalvo, MAY 30, 2013

CHULA VISTA — The first of three meetings to explain how eligible taxpayers could submit claims for a piece of an $8 million lawsuit settlement attracted a handful of people with questions about the process and criticism for the city of Chula Vista.

The proposed settlement ends a class-action suit by wireless phone users against the city. The June 2011 lawsuit challenged a 5 percent fee the city collected from phone customers under the city’s 1970 utility users tax. The suit said the tax was not meant to apply to wireless phone service, and the settlement was reached last month when a San Diego Superior Court judge gave preliminary approval in favor of taxpayers.

The $8 million will be used to pay refunds, litigation expenses and attorneys’ fees. Eligible residents can expect a rebate ranging from $35 to hundreds of dollars.

Dan Hutne, 47, is expecting about $208 back, but said he’s discouraged by the claim process and others may be, too.

“We’ve got to jump through hoops to get it back,” Hutne said at the meeting May 20 at the civic center library. “It’s wrong. We’ve been disenfranchised of our money.”

In November 2010 the city attempted to update the language of its utility laws through Proposition H, which would have applied the tax to newer forms of communication but voters defeated the proposal.

Two Chula Vista residents, Carla Villa, 41, and Vanessa Garza, 36, then brought a lawsuit forward, which was filed by the law offices of CaseyGerry and Capretz & Associates.

Villa and Garza said the lawsuit is about defending resident rights.

“The benefit of it is showing the city it’s not right to be charged this tax,” Garza said.

Villa said she and Garza thought the tax was an injustice.

“It was always our hope that we would win the lawsuit and hopeful that the facts would speak for itself,” she said.

Under terms of the agreement, refunds are available to Chula Vista wireless phone users who paid the city’s utility users tax on their wireless phone bills between April 2010 and April 2013.

CaseyGerry attorney Jason C. Evans and Jim Capretz of Capretz & Associates answered questions from residents at the May 20 meeting and helped residents fill out claim forms.

Chula Vista resident Tony Davis attended to see if he is eligible for a rebate and to bring information back to friends who may be affected.

Capretz said the settlement gives eligible residents the opportunity to collect money that should have never been paid in the first place and any concerns should be expressed to the City Council during meetings.

“You have to speak up and be heard and that’s exactly what should be done in this situation,” he said.

The attorneys anticipate refunds will be disbursed sometime in December but won’t know for sure until a September hearing where the judge is expected to give final approval.

“Before this there’s an appeal process and a chance for people to object,” Capretz said. “If someone files an appeal it could take much longer.”

Now that the lawsuit is settled, plaintiffs and their attorneys are trying to get as many eligible residents to tax advantage of the settlement as possible through social media and word of mouth.

Now that the lawsuit is settled, plaintiffs and their attorneys are trying to get as many eligible residents to tax advantage of the settlement as possible through social media and word of mouth.

Any money leftover goes back to the to a city fund solely for the benefit of citizens for fire and police, library and other services.

“It ain’t over till it’s over but right now we think it’s a pretty good accord,” Capretz said.

The remaining meetings are June 17 and July 14. Claims must be filed no later than July 31.