McKinney-Drobnis v. Massage Envy

You received Notice of this Settlement because you were a member of a Massage Envy Spa in the United States between November 4, 2006, and June 7, 2019, and records indicate that your monthly membership fees may have increased during that time.

You were provided with the Notice of the Settlement because you have a right to know about the proposed class action Settlement. The Court has approved the Settlement, and after any objections and appeals are resolved, Settlement benefits will be provided. You will be informed of the Settlement’s progress on this website.

The Notice and this website explain the lawsuit, the Settlement, your legal rights, what Settlement benefits are available, who is eligible for them, and what happens if you did nothing and are a Class Member.

The Court in charge of the lawsuit is the United States District Court for the Northern District of California, and the lawsuit is known as Baerbel McKinney-Drobnis, et al., v. Massage Envy Franchising, LLC, Case No. 3:16-cv-06450-MMC. The individuals who sued are called Plaintiffs and Class Representatives and the company they sued, MEF, is called the Defendant.

To view a copy of the Notice, click here.

The lawsuit asserted that members of Massage Envy Spas signed membership agreements that prohibited increases in their monthly membership fees and that Class Members were harmed when their monthly membership fees were nonetheless increased.

The lawsuit asserts claims for:

1. Breach of Contract and the Covenant of Good Faith and Fair Dealing;
2. Intentional Interference with Contractual Relations;
3. Violation of the California Consumer Legal Remedies Act;
4. Violation of Cal. Business & Professions Code § 17200 for “Unlawful” Business Acts and Practices;
5. Violation of Cal. Business & Professions Code § 17200 for “Unfair” Business Acts and Practices;
6. Violation of Cal. Business & Professions Code § 17200 for “Fraudulent” Business Acts and Practices; and
7. Declaratory Relief.

MEF denies all allegations in the lawsuit or that it did anything wrong and asserts that it is the franchisor and does not own or operate any of the Massage Envy Spa(s) that you visited.

In a class action lawsuit, the “Class Representatives” (in this case, Baerbel McKinney-Drobnis, Joseph B. Piccola, and Camille Berlese) sue on behalf of themselves and other people who have a similar claim and are located in the United States, who are called “Class Members.” The Court resolves the issues for all Class Members except those who exclude themselves from the settlement.

The Court did not decide that the Class Representatives were entitled to any recovery from MEF. Instead, both sides agreed to a settlement. That way, they avoided the costs and delays of further legal proceedings and Class Members, the people affected, will get the benefits of the Settlement. The Class Representatives and their attorneys believe the Settlement is best for all Class Members.

To see if you are affected by the Settlement or have a right to receive the Settlement benefits, you must determine whether you are a Class Member.

You are a Class Member if you were a member of a Massage Envy Spa at any time between November 4, 2006 and June 7, 2019, and your monthly membership fees were increased during that time.

If you are still not sure whether you are a Class Member, you can ask for free help. You can email info@massagefeesettlement.com or call 1-855-424-0466 for more information from the Settlement Administrator or review the Settlement Documents on this website, available here. Even if you are a Class Member, if you did not file a Voucher Request no later than December 17, 2019, you will not receive a Voucher.

The Settlement provides several forms of relief.

Vouchers: Class Members who submitted valid Voucher Requests by December 17, 2019, will be emailed Vouchers that may be redeemed at any Massage Envy Spa for retail products sold therein, massage sessions, enhancements, and/or facial sessions, as described below in FAQ 8. However, it is possible there may be appeals related to the Final Approval of the Settlement, attorneys’ fees or costs awarded, or an incentive award provided to the Class Representatives. It is always uncertain how these appeals will be resolved and resolving them may take time, perhaps more than a year. This website will be updated to provide current Settlement information, including the date Vouchers will be issued and the date issued Vouchers will expire.

Injunctive Relief: Beginning June 7, 2019, if you were a member of a Massage Envy Spa on that date and did not exclude yourself from the Settlement, you are bound by a new membership agreement available here. This new membership agreement states, in part, that in the future Massage Envy Spas may increase a member’s stated monthly membership fee only after the initial membership term and upon providing at least forty-five (45) days’ advance written notice to the member’s email address on record with the member’s Massage Envy Spa and that such notice shall be effective on the date his/her notice is sent. Forty-five (45) days’ advance written notice will allow you reasonable opportunity to cancel your membership before incurring a noticed price increase. MEF will keep this Injunctive Relief in force as a system standard for at least two (2) years after the Settlement becomes effective.

The face value of the Voucher for which you may be eligible depends on the total amount of fee increases that you paid while a member of a Massage Envy Spa between November 4, 2006 and June 7, 2019. If you are a Class Member and submitted a Voucher Request by December 17, 2019, you are eligible to receive a Voucher in the amount corresponding to your total fee increases you paid as set forth in the table below:

Settlement Voucher Values

Under the Settlement terms, MEF has agreed to issue vouchers with an aggregate face value of at least $10 Million to Class Members who submitted timely and valid Voucher Requests. If the total face value of Vouchers requested by Class Members is less than $10 Million, the Class Members who submitted timely and valid Voucher Requests will receive a pro rata increase in the value of their issued Voucher such that the total face value of issued vouchers equals $10 Million.

The issued Vouchers may be redeemed only at any Massage Envy Spa for the retail products, massage sessions, enhancements, and/or facial sessions you choose. Issued Vouchers may not be redeemed for cash, may not be used to pay monthly Massage Envy Spa membership fees, and may not be used to pay tips to Massage Envy Spa employees. Issued Vouchers are fully transferable and may be aggregated (that is, you may redeem more than one voucher at a time).

Issued Vouchers will expire if not used or redeemed within sixteen (16) months of the date on which they are distributed to Class Members. The expiration date will be conspicuously stated in the emails you receive issuing the Vouchers and will additionally be posted on this website.

The deadline to request a Voucher has passed.

PLEASE DO NOT CALL THE COURT, DEFENDANT, MEF’s COUNSEL, OR ANY MASSAGE ENVY FRANCHISE.

The Court held a Final Approval Hearing on February 28, 2020, to decide whether to approve the Settlement. The Settlement was approved. On March 26, 2020, a Notice of Appeal was filed with the Court.

It is always uncertain how these appeals will be resolved and resolving them may take time, perhaps more than a year. This website will be updated to provide current Settlement information, including the date Vouchers will be issued and the date issued Vouchers will expire. Please be patient. To see the Court’s order, please click here.

Approximately sixty (60) days after the appeal is resolved, Vouchers will be emailed to Class Members who submitted timely and valid Voucher Requests.

If you have any questions regarding these changes, please contact the Settlement Administrator at info@massagefeesettlement.com or 1-855-424-0466.

PLEASE DO NOT TELEPHONE THE COURT OR THE COURT CLERK’S OFFICE TO INQUIRE ABOUT THIS SETTLEMENT OR THE CLAIM PROCESS.

Yes. Unless you excluded yourself from the Settlement, you have agreed to release the claims described in the Settlement Agreement, which means that you cannot sue, continue to sue, or be part of any other lawsuit against MEF or any Massage Envy Franchise about the factual and legal issues of this lawsuit (i.e., the Released Claims described in the Settlement Agreement). It also means that the Court’s orders apply to you and legally bind you, and that you are bound by the new membership agreement as described above. You may view the Settlement Agreement here for the full language of the legal claims you have given up if you did not exclude yourself from the Settlement.

If you are a Class Member and did nothing, you are part of the Settlement and are bound by the release of claims in this Settlement as described above. If you were a member of a Massage Envy Spa as of June 7, 2019 and did nothing, you also are bound by the terms of the new membership agreement as described here. If you are a Class Member and did not timely submit a Voucher Request, you will not receive a Voucher.

The deadline to exclude yourself from the Settlement has passed.

The deadline to object to the Settlement has passed.

The Court held a Final Approval Hearing on February 28, 2020. You no longer have an opportunity to speak at the hearing.

The Class Representatives and the Class are represented by Jeffrey R. Krinsk and Trenton Kashima of Finkelstein & Krinsk LLP. You will not be charged for their work on the lawsuit. ‎If you want to be represented by your own lawyer, you may hire one at your own expense. You can contact Class Counsel as follows:

Jeffrey R. Krinsk
Trenton Kashima
FINKELSTEIN & KRINSK LLP
550 W. C Street
Suite 1760
San Diego, CA 92101
 jrk@classactionlaw.com
 trk@classactionlaw.com
 1-619-238-1333
 1-619-238-5425

In its Final Approval Order, located here, the Court awarded the sum of $2,612,500.00 in attorneys’ fees and the sum of $58,692.40 in expenses, which sums the Court found to be fair and reasonable. MEF will pay any attorneys’ fees and costs that the Court awarded to Class Counsel.

MEF also will separately pay the incentive awards to the Class Representatives awarded by the Court of $5,000.00 per Class Representative.

Finally, MEF will separately pay the reasonable costs to administer the Settlement. MEF’s payments of these amounts will not diminish the Settlement benefits provided to the Class Members under the Settlement as described in the Settlement Agreement, available here.