1. Why did I get a notice?
You received a notice because NovelPay identified you as a person who paid a Service Fee to NovelPay in connection with NovelPay’s collection of charges
arising from residential real property located in Maryland, including rent and community association dues, during the period beginning
April 19, 2018 through and including December 26, 2024.
The Court sent the notice because Settlement Class Members have a right to know about this class action lawsuit and Settlement, and
about your option to exclude yourself from the class action and Settlement if you so desire.
The Court in charge of the case is the Circuit Court for Prince George’s County, Maryland, and the case is
known as Stokes v. NovelPay, LLC, Case No. C-16-CV-24-001546.
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2. What is this lawsuit about?
The lawsuit claims that NovelPay acted as a collection agency in Maryland without a legally-required Maryland collection agency license or
bond when it collected amounts due for residential property, such as rent and homeowner’s association dues, and that it violated Maryland
law by charging Service Fees in connection with that unlicensed activity. NovelPay denies these claims and believes it did nothing wrong.
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3. Why is this a class action?
In a class action, one or more individuals called Class Representatives (in this case Samuel Stokes), file claims on behalf of themselves as well as
other individuals who have similar claims. If a Court determines that those similar claims should all be handled in one lawsuit,
the Court may order that the claims proceed as a class action. The Circuit Court for Prince George’s County, Maryland is in charge of this class action.
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4. Why is there a settlement?
The Court did not decide any of the issues. The Class Representative alleged the Class should be allowed to recover the Service Fees NovelPay charged to
the approximately 63,200 Settlement Class Members, after a trial. NovelPay asserts that it did nothing wrong, so the Class should not recover anything.
But there was no trial. Instead, both sides agreed to a settlement. That way, they avoid the costs of additional and protracted
legal proceedings, potentially including a trial and appeals, and Settlement Class Members will get compensation if they file a valid and timely claim.
Class Counsel think the Settlement is best for all Settlement Class Members.
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5. How do I know if I am part of the Settlement?
The parties agreed and the Circuit Court for Prince George’s County ordered that everyone who fits the following description
is a Settlement Class Member (with some exceptions):
All persons who paid a Service Fee to NovelPay in connection with NovelPay’s collection of charges arising from residential real
property located in Maryland, including rent and community association dues, from April 19, 2018 through December 26, 2024.
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6. Are there exceptions to being included?
The Settlement Class excludes all employees, officers and directors of NovelPay, and all employees of the Court.
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7. I’m still not sure if I am included.
If you are still not sure whether you are included, you can ask for free help. You can call (833) 319-2034 for more information.
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8. What am I giving up to stay in the Settlement?
Unless you exclude yourself from this case, you will remain a Settlement Class Member, and that means that you can’t sue, continue to sue, or
be part of any other lawsuit against NovelPay about claims sharing the factual predicate of the claims in the Lawsuit.
It also means that all of the Court’s orders will apply to you and legally bind you.
The full scope of the release is available in the Settlement Agreement here.
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9. What does the Settlement provide?
NovelPay has agreed to pay $3,000,000 into a common fund (the “Common Fund”). The Common Fund will be used to make payments to all Settlement Class Members who
file Valid Claims, after deducting payment to Class Counsel for Court approved expenses and up to 1/3 of the Common Fund in attorneys’ fees.
In order to make a Valid Claim, Settlement Class Members must choose whether to receive their settlement payment in the form of a paper check, or
in the form of an electronic payment. NovelPay has represented that the Settlement Class includes approximately 63,200 persons.
Settlement Class Members who file Valid Claims will be entitled to a pro rata payment in proportion to the amount of Service Fees charged to the
Settlement Class Member submitting a Valid Claim (according to NovelPay’s records) as compared to the total amount of Service Fees charged to
all Settlement Class Members who file Valid Claims. Settlement Class Members who file Valid Claims and were charged more in Service Fees will
receive larger payments than Settlement Class Members who were charged less in Service Fees; and, each Settlement Class Member’s
payment amounts will increase or decrease proportionally based upon the total number of Valid Claims filed. Settlement Class Members
may file claims by visiting this page, or through a paper Claim Form. Under the Settlement,
Settlement Class Members give up any right to sue for claims resulting from, arising out of, or regarding the factual predicate alleged in the Lawsuit.
In addition to the Common Fund, NovelPay has agreed to pay the costs of settlement administration, subject to a right to recoup up to $150,000 of
those costs from any Unclaimed Settlement Payments. NovelPay has also agreed to pay an additional $15,000 in a service payment to the Named Plaintiff,
Samuel Stokes, subject to Court approval.
All claims must be made on or before August 8, 2025. If you do not file a Valid Claim, you will not receive any payment. However,
even if you do not file a claim you will still be bound by the Settlement if you do not opt-out. You may file a claim here, or you may
submit a paper Claim Form.
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10. Can I file more than one claim?
No. Even if you paid multiple Service Fees to NovelPay, you only need to file one claim.
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11. How can I file a claim?
The deadline for filing a claim is August 8, 2025.
You must file a claim, either online or by mail, to receive payment.
You may file a claim here. You may also download a Claim Form,
print it out, complete it, and deliver it to the Settlement Administrator; or, you may ask the Settlement Administrator
to mail you a Claim Form for you to complete and return by calling (833) 319-2034.
Whatever method you choose, you must fully complete the Claim Form and properly submit it to the
Settlement Administrator before your claim will be recognized as being filed.
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12. If I file a claim, when will I get paid?
The Court will hold a hearing on April 28, 2025, to decide whether to approve the Settlement. If the Court approves the Settlement,
and there is no appeal, the Settlement Administrator will send payments to Settlement Class Members who have filed valid and completed claims
on a date that is the later of forty-five (45) days after: (1) the Effective Date; or (2) the Claims Deadline.
The deadline for filing a claim is August 8, 2025.
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If you don’t want to stay in the Class, then you must take steps to get out. This is called excluding yourself — or is sometimes referred to as “opting out” of the Class.
13. How do I get out of the Settlement?
To exclude yourself from the Settlement, you must send a letter by mail saying that you want to be excluded from the Class in
Stokes v. NovelPay, LLC. Be sure to include your name, address, telephone number, and your signature. You must mail your
exclusion request postmarked no later than March 26, 2025 to:
Stokes v. NovelPay, LLC Exclusions
c/o Settlement Administrator
P.O. Box 16
West Point, PA 19486
If you ask to be excluded by the deadline, you will not be eligible for any settlement payment, and you cannot object to the Settlement,
but you will not be legally bound by anything that happens in this lawsuit. Full details regarding the exclusion process are
available in the Settlement Agreement here.
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14. If I don’t exclude myself, can I sue NovelPay later?
No. Unless you exclude yourself, you give up any right to sue the Released Parties for claims resulting from, arising out of, or regarding the
factual predicate alleged in the Lawsuit. If you have another pending lawsuit about the claims in this lawsuit, speak to your lawyer in that
case immediately. You must exclude yourself from this Settlement Class to continue another lawsuit sharing the same factual predicate as this case.
Remember, the exclusion deadline is March 26, 2025.
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15. If I exclude myself, can I get benefits from this Settlement?
No. If you exclude yourself, you cannot be part of this Settlement.
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16. Do I have a lawyer in this case?
The Court appointed the law firm of Gordon, Wolf & Carney, Chtd., in Hunt Valley, Maryland, to represent you and other Settlement Class Members.
These lawyers are called Class Counsel. You will not be individually charged for these lawyers. If you are a Settlement Class Member
and you want to be represented by your own lawyer, and you do not request exclusion, you may hire a lawyer at
your own expense and enter an appearance through that lawyer.
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17. How will the lawyers be paid?
Class Counsel will ask the Court to approve payment of one-third of the Common Fund for attorneys’ fees, plus the expenses they incurred litigating this case.
The fees would pay Class Counsel for investigating the facts, litigating the case, and negotiating the Settlement.
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You can tell the Court that you don’t agree with the Settlement or some part of it.
18. How do I tell the Court that I don’t like the Settlement?
If you’re a Settlement Class Member, you can object to the Settlement if you don’t like any part of it. You can give reasons why you think the Court should
not approve it. To object, you must send a letter saying that you object to the Settlement in Stokes v. NovelPay, LLC, Case No. C-16-CV-24-001546.
The letter must also include the following: (1) the Settlement Class Member’s full name, address and current telephone number; (2) if the individual is
represented by counsel, the name and telephone number of counsel, if counsel intends to submit a request for fees and all factual and legal support
for that request; (3) all objections and the basis for any such objections stated with specificity, including a statement as to whether the
objection applies only to the objector, to a specific subset of the class, or to the entire class; (4) the identity of any witnesses the
objector may call to testify; (5) a listing of all exhibits the objector intends to introduce into evidence at the Final Approval Hearing,
as well as true and correct copies of such exhibits; and (6) a statement of whether the objector intends to appear at the Final Approval Hearing,
either with or without counsel. Representative Plaintiff, Class Counsel, and/or NovelPay may take discovery regarding any objector, their attorney
(if applicable), and the basis for any objection, subject to Court approval. By filing an objection, objectors and their counsel submit to the
jurisdiction of the Court for all purposes of this Lawsuit and Settlement, including but not limited to subpoenas and discovery.
Any Settlement Class Member who fails to timely file and serve a written objection pursuant to these requirements shall not be permitted to object
to the approval of the Settlement or the Agreement and shall be foreclosed from seeking any review of the Settlement or the terms of the
Agreement by appeal or other means. For any objection to be considered, it must include the information described in the above paragraph,
and a copy must be mailed to each of these three different places below, postmarked no later than March 26, 2025:
|
COURT
|
CLASS COUNSEL
|
NOVELPAY’S COUNSEL
|
Clerk, Circuit Court for Prince
George’s County
14735 Main Street
Upper Marlboro, MD 20772
|
Benjamin H. Carney, Esq.
GORDON, WOLF & CARNEY, CHTD.
11350 McCormick Road
Executive Plaza 1, Suite 1000
Hunt Valley, MD 21031
|
Mary M. Gardner, Esq.
VENABLE LLP
600 Massachusetts Avenue NW
Washington, DC 20001
|
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19. What’s the difference between objecting and excluding?
Objecting is simply telling the Court that you don’t like something about the Settlement and that you don’t want it approved. You can object only
if you stay in the Settlement Class. Excluding yourself, on the other hand, is telling the Court that you don’t want to be part of the Settlement Class.
If you exclude yourself, you cannot object because you are excluded from the Settlement Class and the case no longer affects you.
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The Court will hold a hearing to decide whether to approve the Settlement as fair to the Class. You may attend and you may ask to speak, but you don’t have to.
20. When and where will the Court decide whether to approve the Settlement?
The Court is scheduled to hold a Fairness Hearing at 9:00 AM on April 28, 2025, in the
Circuit Court for Prince George’s County, 14735 Main Street, Upper Marlboro, MD 20772. The time or place of the hearing could change or
it could be canceled, and you can contact the Settlement Administrator to find out if there is any change, at (833) 319-2034.
At this hearing the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are timely and valid objections,
the Court will consider them. After the hearing, the Court will decide whether to approve the Settlement.
We do not know how long the Court’s decision will take.
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21. Do I have to come to the hearing?
No. But you are welcome to come at your own expense. If you send an objection, you don’t have to come to Court to talk about it. As long as you
mailed your written objection on time and included the required information, the Court will consider it.
You may also pay your own lawyer to attend, but it’s not necessary.
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22. May I speak at the hearing?
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 Stokes v. NovelPay, LLC, Case No. C-16-CV-24-001546”. Be sure to include your name, address,
telephone number, and your signature. Your Notice of Intention to Appear must be postmarked no later than
March 26, 2025, and be mailed to the Clerk of the Court, Class Counsel, and NovelPay’s Counsel,
at the three addresses listed in the answer to Question 18.
You cannot speak at the hearing if you exclude yourself, or if you fail to timely file a Notice of Intention to Appear.
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23. What happens if I do nothing at all?
If you fit the Class definition above and do nothing, you will not receive any payment. But, unless you exclude yourself, you will still be a
Settlement Class Member, you won’t be able to start a lawsuit, continue with a lawsuit, or be part of any other
lawsuit sharing the factual predicate of the Lawsuit.
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24. Are there more details about the lawsuit and proposed Settlement?
This notice summarizes the lawsuit and proposed Settlement. More details are in the Complaint, Settlement Agreement, and other documents filed in Court.
You can get a copy of the Complaint, Settlement Agreement, and other important documents on this website, from the Court,
or by requesting them from the Settlement Administrator.
You can write to Stokes v. NovelPay, LLC, c/o Settlement Administrator, P.O. Box 16, West Point, PA 19486; or
call (833) 319-2034 toll free where you will find answers to common questions about the lawsuit
and other information to help you determine whether you are a Settlement Class Member.
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BY ORDER OF THE CIRCUIT COURT FOR PRINCE GEORGE’S COUNTY.