Schraner v. Northeast Revenue Service, LLC. et al.

Plaintiffs, Mark F. Schraner and Mari T. Carr (collectively “Plaintiffs”), filed this Action against NERS in September 2018 in the Court of Common Pleas of Montgomery County. The matter was transferred to the Court of Common Pleas of Lackawanna County in 2019, Docket No. 2019-cv-4243, and NERS joined Scranton as a defendant in the action. Settlement Class Members are subject to payment of the Refuse Fee imposed by Scranton. NERS was the debt collector for Scranton for delinquent Refuse Fees. NERS and Scranton allegedly imposed Penalties, Interest and Costs on Refuse Fees that exceeded the Face Amount owed. Plaintiffs allege these Penalties, Interest and Costs violated the Municipal Claims and Tax Liens Law, 53 P.S. § 7101, et seq.

Although NERS and Scranton dispute Plaintiffs’ claims and deny any wrongdoing, they have entered into this Settlement.

If you received a Notice, it is because you have been identified as a Class Member. Damages Class Members paid Penalties, Interest and/or Costs over the Face Amount of the Refuse Fee between September 12, 2016 and December 31, 2020. Declaratory Relief Class Members did not pay, but are subject to a municipal lien for, Penalties, Interest and/or Costs over the Face Amount of the Refuse Fee between September 12, 2012 and December 31, 2020.

As a Class Member, you have certain rights and options prior to the Court deciding whether to approve the Settlement. The Notice informs you of those rights and options and where additional information can be found.

NERS and Scranton have agreed to pay $2.5 million to create a Settlement Fund to pay to the Damages Class Members pursuant to a Plan of Allocation that must be approved by the Court. The Settlement Fund also includes payment of all related costs of providing this Notice to you and administration of the Settlement, payment of Plaintiffs’ Counsel’s attorneys’ fees and litigation costs, and Service Awards. The Settlement Fund is approximately 70% of the damages alleged for the Damages Class.

Further, there is a Declaratory Relief Class for those who did not pay Penalties, Interest or Costs like the Damages Class, but who are subject to an unpaid municipal lien for delinquent Refuse Fees between September 12, 2012 and December 31, 2020. The Declaratory Relief Class does not receive a payment from the Settlement Fund because those Class Members did not pay Penalties, Interest or Costs alleged to be unlawful. Instead, the Settlement creates the Scranton Lien Forgiveness Program whereby Scranton will release and forever discharge the amount of any lien for Refuse Fees exceeding the Face Amount owed by the Declaratory Relief Class. It is estimated that the Scranton Lien Forgiveness Program will not seek to collect over $7.5 million in unpaid Penalties, Interest and Costs in over the Face Amount of the Refuse Fees owed by the Declaratory Relief Class alleged to be unlawful.

As a Damages Class Member, you will receive a payment from the Settlement Fund that represents your pro rata share of the Settlement Fund. To calculate your pro rata share, you will be allocated a percentage of the total Penalties, Interests and/or Costs you paid in excess of the Face Amount of Refuse Fees you owed as a portion of the total Penalties, Interest and Costs collected by NERS from September 12, 2016 through December 31, 2020. The payment will be mailed directly to you within 45 days from the date of the Court’s order approving the Settlement as final.

As a Declaratory Relief Class Member, you will automatically receive the benefits of the Scranton Lien Forgiveness Program. The municipal lien for your unpaid delinquent Refuse Fees will be forgiven and forever discharged by Scranton for any amount over the Face Amount of the Refuse Fee owed from 2012 to 2020. This forgives all Penalties, Interest and Costs imposed.

You do not have to file a claim or do anything to receive this payment as a member of the Damages Class or to participate in the Scranton Lien Forgiveness Program as a member of the Declaratory Relief Class. If there are any appeals from the Court’s approval order, they will need to be resolved prior to issuing any payments.

If you do not exclude yourself as a Class Member by opting out (described in FAQ 6) and the Court approves the Settlement, you will release and forever discharge Released Parties, including Defendants, for Released Claims, which include any and all claims relating to the Refuse Fees you paid, in exchange for the payment to you as described in FAQ 4. If you do not opt out, you will not be able to sue NERS or Scranton concerning your payment of Refuse Fees because this lawsuit resolves any claims you have or had against both entities for their collection and your payment of Refuse Fees.

If you do not want to be a Class Member and receive the applicable relief identified in FAQ 4 in exchange for the release of claims under the terms of this Settlement and wish to pursue a separate lawsuit over the issues in the lawsuit, then you must take affirmative steps to exclude yourself from this Settlement as a Class Member. This process is referred to as “opting out” of the Damages Class.

To exclude yourself as a Class Member, you must mail a request to opt out or exclude yourself from the Settlement postmarked by July 5, 2023, to the Settlement Administrator at

Schraner v. Northeast Revenue Service, LLC.
Settlement Administrator
P.O. Box 2973
Portland, OR 97208-2973

If you do not timely opt out, you will not be permitted to opt out at a later date.

No. If you timely opt-out as described in FAQ 6, you will not receive money from the Settlement and any unpaid municipal lien will remain owed to Scranton, but you will be able to bring a lawsuit against NERS and Scranton (subject to any defenses the Defendants may assert) and you will not be required to provide a release of any claims to Defendants.

If you are a Class Member, you can submit written comments to the Court in support of, or in opposition to, the Settlement or any of its terms. A written comment in opposition to the Settlement is called an “objection.” To object, a Class Member must send their written objection to the Court and mail a copy of the objection on the Settlement Administrator and Counsel, identified below by July 5, 2023:

To be considered by the Court, all objections must be in writing and personally signed by the Settlement Class Member and must include

1. the case name and number, Mark F. Schraner et al. v. Northeast Revenue Service, Inc. et al., No. 2019-cv-4243 (C.C.P. Lackawanna Co.);
2. his/her/its full name, current address, and current telephone number;
3. a statement of the objection(s), including all factual and legal grounds for the position;
4. copies of any documents the objector wishes to submit in support;
5. the name and address of the attorney(s), if any, who is representing the objecting Class Member in making the objection or who may be entitled to compensation in connection with the objection;
6. a statement of whether the Class Member objecting intends to appear at the Final Approval Hearing, either with or without counsel;
7. the identity of all counsel (if any) who will appear on behalf of the Class Member objecting at the Final Approval Hearing and all persons (if any) who will be called to testify in support of the objection;
8. the signature of the Class Member objecting, in addition to the signature of any attorney representing the Class Member objecting in connection with the objection; and
9. a date on the objection.

In addition, any Class Member objecting to the Settlement shall provide a list of any other objections submitted by the objector, or the objector’s counsel, to any class action settlements submitted in any court in Pennsylvania or the United States in the previous five years. If the Class Member or his or her counsel has not made any such prior objection, the Class Member shall affirmatively so state in the written materials provided with the objection.

The written objection must indicate whether the Settlement Class Member and/or their counsel intend to appear at the Final Approval Hearing to be scheduled by the Court. If you have opted out, you are no longer a Settlement Class Member and you cannot submit an objection.

If you submit a valid opt-out, you are no longer a Class Member subject to the terms of the Settlement. This means you will not participate in its benefits or release any claims against the Defendants. If you object, you can comment on the terms of the Settlement and remain a Class Member so that you can receive the Settlement’s benefits in exchange for providing the release of the Released Claims to Defendants if and when the Court approves the Settlement.

If the Court approves the Settlement and you are a Class Member, you will receive the benefits described in FAQ 4 and grant the Defendants a release of all claims relating to the Refuse Fees. You will also not be able to bring a separate lawsuit against Defendants concerning the Refuse Fees you paid or the municipal lien for unpaid Refuse Fees filed against you.

The Court will hold a Final Approval Hearing on August 24 at 10:00 A.M. EST in Courtroom #4, Lackawanna County Courthouse, 123 Wyoming Avenue Scranton, PA 18503. The Honorable James A. Gibbons will preside at the hearing.

The Final Approval Hearing may be moved to a different date, time or location without additional notice to Class Members, but it will be posted to this website, so please confirm if you have notified the Court you intend to appear.

At the Final Approval Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. The Court will also consider how much to award Class Counsel for attorneys’ fees. The requested fees will not exceed one-third of the Settlement Fund, plus reimbursement of litigation costs. The Court will also consider whether to award an incentive award to Plaintiffs who prosecuted the lawsuit on behalf of the Settlement Class in an amount not to exceed $2,500 for each property (total not to exceed $5,000 for all Plaintiffs). The Court will also award payment to the Settlement Administrator.

No. Class Counsel will answer any questions that the Court may have and address any challenges to the Settlement. If you timely send a comment supporting or objecting to the Settlement, you may, but do not have to come to Court to discuss the issues raised in your written objection, so long as the procedure set forth in FAQ 8 was correctly followed. You may also attend the hearing in person and may hire your own attorney to attend for you at your own expense.

No. Class Counsel has been appointed by the Court and will be present at the hearing to appear on behalf of all Settlement Class Members.

If you have any questions regarding your rights as a Class Member or the options and rights discussed on this website, you may contact Class Counsel without charge. You can also obtain more information by calling 1-888-497-4384.

PLEASE DO NOT CONTACT THE COURT.