1
Settlement Agreement Between
Sara Hammond and Revo International Gift Co LTD
SETTLEMENT AGREEMENT
BETWEEN
SARA HAMMOND
AND
REVO INTERNATIONAL GIFT CO LTD
Sara Hammond (“Hammond”) and Revo International Gift Co LTD (herein referred to as
“REVO”) (Hammond and REVO are collectively referred to as the “Parties”), enter into this
agreement (“Settlement Agreement”) for the purpose of avoiding prolonged and costly litigation
to settle Hammond’s allegations that REVO violated Proposition 65. The effective date of this
Settlement Agreement shall be the date upon which it is fully executed by all Parties hereto (the
“Effective Date”).
1. Introduction
1.1. Hammond alleges she is an individual who seeks to promote awareness of
exposures to toxic chemicals and improve human health by reducing or
eliminating hazardous substances contained in consumer and industrial products.
1.2. REVO previously either sold, offered for sale, imported, distributed, or
manufactured the Dirty Dog Garage Microfiber Towel Storage Case
SKU_08511931644200099910 (referred to throughout as the “Covered Product”).
1.3. Hammond alleges that the Covered Product contains Di(2-ethylhexyl)phthalate
(“DEHP”), also known as Diethyl Hexyl Phthalate and Bis (2-ethylhexyl)
phthalate, and that REVO did not provide a required warning in compliance with
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Settlement Agreement Between
Sara Hammond and Revo International Gift Co LTD
the California Safe Drinking Water and Toxic Enforcement Act of 1986 (Cal.
Health & Safety Code § 25249.5, et seq. (“Proposition 65”)).
1.4. On January 1, 1988 the Governor of California added DEHP to the list of
chemicals known to the State to cause cancer, and on October 24, 2003, the
Governor added DEHP to the list of chemicals known to the State to cause
developmental male reproductive toxicity. These additions took place more than
twenty (20) months before Hammond served her “Sixty-Day Notice Of Violation
Sent in Compliance With California Health & Safety Code § 25249.7(d)” which
is further described below.
1.5. DEHP is referred to hereafter as the “Listed Chemical”.
1.6. On or about November 16, 2023 Hammond alleges she served REVO, Burlington
Coat Factory Warehouse and related entities and certain relevant public
enforcement agencies with a Sixty-Day Notice of Violation that was sent pursuant
to California Health & Safety Code § 25249.7(d) alleging the Covered Product
contained the Listed Chemical (the “Notice”).
1.7. The Notice alleged that REVO violated Proposition 65 by failing to warn
consumers in California that use of the Covered Products exposed persons to the
Listed Chemical.
1.8. The Parties enter into this Settlement Agreement to settle disputed claims between
them concerning the Parties’ and the Covered Products’ compliance with
Proposition 65 (the “Dispute”).
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Settlement Agreement Between
Sara Hammond and Revo International Gift Co LTD
1.9. REVO disputes and does not admit Hammond’s allegations described in this
Settlement Agreement and in the Notice.
1.10. By execution of this Settlement Agreement, the Parties do not admit any facts or
conclusions of law against interest, including, but not limited to, any facts or
conclusions of law regarding any violation of Proposition 65, or any other
statutory, regulatory, common law, or equitable doctrine. Nothing in this
Settlement Agreement shall be construed as an admission against interest by the
Parties of any fact, conclusion of law, issue of law, or violation of law. Nothing in
this Settlement Agreement, nor compliance with its terms, shall constitute or be
construed, considered, offered, or admitted as evidence of an admission against
interest or evidence of fault, wrongdoing, or liability by REVO, its officers,
directors, employees, or parents, subsidiaries or affiliated corporations, licensees,
licensors, suppliers, manufacturers, importers, distributors or retailers of its
products, in any administrative or judicial proceeding or litigation in any court,
agency, or forum. Except for the allegations settled and compromised, nothing in
this Settlement Agreement shall prejudice, waive, or impair any right, remedy,
argument, or defense that Hammond or REVO may have in any other legal
proceeding as to allegations unrelated to the Dispute or claims released herein.
2. Release
2.1. This Settlement Agreement is a full, final, and binding resolution between
Hammond, acting in her individual capacity, on the one hand, and (a) REVO, and
its owners, parents, subsidiaries, affiliates, sister and related companies, licensees,
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Settlement Agreement Between
Sara Hammond and Revo International Gift Co LTD
licensors, suppliers, manufacturers, importers, employees, shareholders, members,
officers, directors, insurers, attorneys, predecessors, successors, and assigns
(collectively “Releasees”) and (b) all entities to whom Releasees directly or
indirectly provide, distribute, or sell the Covered Product, including but not
limited to Burlington Coat Factory Warehouse and related entities, distributors,
wholesalers, customers, retailers, franchisees, and cooperative members
(“Downstream Releasees”), on the other hand, of any violation(s) or claimed
violation(s) of Proposition 65 or any statutory or common law claim that has
been, could have been or may in the future be asserted against the Releasees and
Downstream Releasees regarding exposing persons to any Proposition 65 listed
chemical or the failure to warn about exposure to any Proposition 65 listed
chemical arising in connection with the Covered Product sold, offered for sale, or
otherwise distributed by REVO up through and including July 31, 2024, even if
sold by Releasees or Downstream Releasees after that date.
2.2. Hammond, on behalf of herself and her past and current agents, representatives,
attorneys, successors, and/or assignees, hereby waives and releases with respect to
the Covered Product all rights to institute or participate in, directly or indirectly,
any form of legal action, including, without limitation, all actions, and causes of
action, in law or in equity, suits, liabilities, demands, obligations, damages, costs,
fines, penalties, losses, or expenses (including, but not limited to, investigation
fees, expert fees, and attorneys’ fees) (collectively “Claims”), against Releasees
and the Downstream Releasees that arise under Proposition 65 or any other
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Settlement Agreement Between
Sara Hammond and Revo International Gift Co LTD
statutory or common law claims that were or could have been asserted in
connection with the Covered Product sold, offered for sale, or otherwise
distributed by REVO up through and including July 31, 2024, even if sold by
Releasees or Downstream Releasees after that date, including without limitation
to the extent that such claims relate to Releasees’ or Downstream Releasees’
alleged exposure of persons to any Proposition 65 listed chemicals contained in
the Covered Product or any failure by Releasees or Downstream Releasees to
warn about exposures to any Proposition 65 listed chemical contained in the
Covered Product.
2.3. Hammond acknowledges that she is familiar with Section 1542 of Civil Code,
which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO
CLAIMS THAT THE CREDITOR OR RELEASING
PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN
HIS OR HER FAVOR AT THE TIME OF EXECUTING
THE RELEASE AND THAT, IF KNOWN BY HIM OR
HER, WOULD HAVE MATERIALLY AFFECTED HIS
OR HER SETTLEMENT WITH THE DEBTOR OR
RELEASED PARTY.
Hammond, on behalf of herself and her past and current agents, representatives,
attorneys, successors, and/or assignees expressly waives and relinquishes any and
all rights and benefits which she may have under, or which may be conferred on
her by the provisions of California Civil Code § 1542 as well as under any other
state or federal statute or common law principle of similar effect, to the fullest
extent that she may lawfully waive such rights or benefits pertaining to the
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Settlement Agreement Between
Sara Hammond and Revo International Gift Co LTD
released matters up through and including the Effective Date. The release in this
section shall have no force or effect until the full amount of payments set forth
below are paid in full.
2.4. REVO's release of Hammond
REVO on its own behalf, and on behalf of its past and current agents,
representatives, attorneys, successors and assignees, hereby waives any and all
claims against Hammond and her attorneys and other representatives for any and
all actions taken or statements made by them in connection with this matter,
whether in the course of investigating claims, seeking to enforce Proposition 65
against it in this matter, or with respect to the Covered Product up through and
including the Effective Date.
3. REVO’s Duties
3.1. After July 31, 2024, REVO shall not sell the Covered Product for distribution in
California unless the product is a “Reformulated Covered Product” as defined in
Paragraph 3.2 or unless REVO provides a Compliant Warning as defined in
Paragraph 3.3 for any non-reformulated Covered Product that it sells in
California. Compliance with this Settlement Agreement by REVO shall
constitute compliance under Proposition 65 with regard to Covered products sold,
offered for sale, imported, manufactured or otherwise distributed after the
Effective Date.
3.2. For purposes of this Settlement Agreement, “Reformulated Covered Products”
are Covered Products containing no more than 1,000 parts per million (0.1%)
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Settlement Agreement Between
Sara Hammond and Revo International Gift Co LTD
DEHP in any accessible component (“accessible component” is defined as any
component that could be touched by a person during reasonably foreseeable use).
In order to determine compliance with this reformulation standard, REVO may
rely on third party testing from an accredited laboratory.
3.3. The Parties agree that should REVO choose to provide a Prop 65 warning
concerning the Covered Product rather than reformulate the Covered Product, any
Prop 65 warning used by REVO must meet the requirements set forth in
California Code of Regulations, Title 27, Article 6, subarticle 2 for products
containing DEHP and appropriate in method and content for the given method of
sale to the consumer.
3.4. The Parties agree that the specifications for Compliant Warnings in this
Settlement Agreement comply with Proposition 65 and its regulations as of the
date of this Settlement Agreement, and with regulations adopted on or about
August 30, 2016 and which became effective August 30, 2018.
3.5. If modifications or amendments to Proposition 65 or its “safe harbor” regulations
after the Effective Date are adopted as to what constitutes a “clear and reasonable
warning,” Defendant may modify the content and delivery methods of its
warnings to conform to the modified or amended provisions of Proposition 65 or
its regulations.
4. Payments
4.1. REVO agrees to pay a total of ten thousand dollars ($10,000.00) within 5 days
from the Effective date.
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Settlement Agreement Between
Sara Hammond and Revo International Gift Co LTD
All payments shall be made either: (1) by Electronic Funds Transfer (“EFT”) to
the account specified by Hammond in her counsel’s February 2, 2024 e-mail or
(2) by check and sent via overnight mail with tracking numbers provided to
plaintiff's counsel and addressed as follows:
Joseph D. Agliozzo, Law Corporation
1601 N. Sepulveda Boulevard, # 649
Manhattan Beach, CA 90266
The payment specified in Section 4.1 is allocated as specified in Sections 4.1.1
and 4.1.2. If REVO pays by EFT, after the EFT has cleared Hammond or her counsel
shall be responsible for dividing the payment as allocated in Sections 4.1.1 and 4.1.2 and
making the required payments to each recipient. If REVO pays by check, it shall issue
checks as specified in Sections 4.1.1 and 4.1.2.
4.1.1. Civil Penalty: The total amount of five hundred dollars ($500.00) as
penalties pursuant to California Health & Safety Code § 25249.12. If
paying by check, REVO shall issue two separate checks as follows: (a)
one check made payable to the State of California’s Office of
Environmental Health Hazard Assessment (OEHHA) in the amount of
three hundred and seventy five dollars ($375.00), representing 75% of the
total penalty; and (b) one check to Sara Hammond in the amount of one
hundred and twenty five dollars ($125.00), representing 25% of the total
penalty. Additionally, two separate 1099’s shall be issued for the above
payments. The first 1099 shall be issued to OEHHA, PO Box 4010,
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Settlement Agreement Between
Sara Hammond and Revo International Gift Co LTD
Sacramento, CA 95184 (EIN: 68-0284486) in the amount of $375.00. The
second 1099 shall be issued in the amount of $125.00 to Sara Hammond
and be addressed to Sara Hammond C/O Joseph D. Agliozzo, Law
Corporation and shall be delivered to Joseph D. Agliozzo, Law
Corporation, 1601 N. Sepulveda, #649, Manhattan Beach, CA 90266. At
REVO's request, Hammond's counsel shall provide REVO with a W-9 for
Hammond prior to the Effective Date.
4.1.2. Attorneys’ Fees and Costs: A total of nine thousand five hundred dollars
($9,500) shall be paid to Joseph D. Agliozzo, Law Corporation as
Hammond's attorney, for reasonable investigation fees and costs,
attorneys’ fees, and other costs incurred as a result of investigating and
bringing this matter to REVO's attention. At REVO's request, Hammond's
counsel shall provide REVO with a W-9 for Joseph D. Agliozzo, Law
Corporation prior to the Effective Date.
5. Authority to Enter Into Settlement Agreement
5.1. Hammond represents that she has full authority to enter into and legally bind
Hammond to this Settlement Agreement.
5.2. The person signing this Settlement Agreement on behalf of REVO represents and
warrants that he/she has been granted full authority to enter into and legally bind
REVO to this Settlement Agreement.
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Settlement Agreement Between
Sara Hammond and Revo International Gift Co LTD
6. Report of the Settlement Agreement to the Office of the Attorney General of
California
Hammond shall report this Settlement Agreement to the Attorney General’s Office within
five (5) days of the Effective Date of this Settlement Agreement.
7. Execution in Counterparts and Facsimile
This Settlement Agreement may be executed in counterparts, which taken together shall
be deemed to constitute the same document. A facsimile or portable document format
(PDF) signature shall be as valid as the original as an electronic record executed and
adopted by a Party with the intent to sign the electronic record pursuant to California
Civil Code §§ 1633.1-1633.17.
8. Entire Agreement
This Settlement Agreement contains the sole and entire agreement and understanding of
the Parties with respect to the subject matter hereof, and all related prior discussions,
negotiations, commitments, and understandings. No other promises or agreements, oral or
otherwise, exist to bind any of the Parties or are being relied on by any of the Parties in
connection with the execution of this Settlement Agreement.
9. Modification of Settlement Agreement
Any modification to this Settlement Agreement shall be in writing and signed by the
Parties.
10. Application of Settlement Agreement
This Settlement Agreement shall apply to, be binding upon, and inure to the benefit of,
Hammond and the Releasees and Downstream Releasees identified in Section 2 above.
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Settlement Agreement Between
Sara Hammond and Revo International Gift Co LTD
11. Enforcement of Settlement Agreement
If one Party alleges the other Party is in breach of this Settlement Agreement, that Party
shall notify the other party. The Parties agree to meet and confer in good faith for a
period of up to thirty days from the initial notice to attempt to resolve the allegation. If
informal efforts fail, any party may file suit before the Superior Court of the County of
Los Angeles, consistent with the terms and conditions set forth in this Settlement
Agreement, to enforce the terms and conditions contained in this Settlement Agreement.
The prevailing party shall be entitled to its reasonable attorneys’ fees and costs associated
with such proceeding. This Settlement Agreement may be enforced exclusively by the
Parties hereto.
12. Notification Requirements
Any notice required or permitted hereunder shall be effective only if given in writing and
delivered in person, or via certified or registered mail return receipt requested, or via
traceable overnight delivery service, to the following designees:
For Hammond:
Joseph D. Agliozzo
Law Office of Joseph D. Agliozzo
1601 N. Sepulveda Boulevard, #649
Manhattan Beach, CA 90266
For REVO:
Revo International Gift Co., Ltd.
12536 Summerwood Drive
Burleson,TX76028
and
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Settlement Agreement Between
Sara Hammond and Revo International Gift Co LTD
Jeffrey Parker
Sheppard Mullin Richter & Hampton LLP
333 S. Hope Street, 43rd Floor
Los Angeles CA 90071
Any party may change its designee(s) for purposes of notification by providing written
notice of such change pursuant to this section. Courtesy notices via email to counsel may
be provided.
13. Severability
If, subsequent to the execution of this Settlement Agreement, any of the provisions of this
Settlement Agreement are held by a court to be unenforceable, the validity of the
enforceable provisions remaining shall not be adversely affected.
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Settlement Agreement Between
Sara Hammond and Revo International Gift Co LTD
14. Governing Law
The terms of this Settlement Agreement shall be governed by the laws of the State of
California and shall apply only to Covered Products sold to a California consumer. In the
event that Proposition 65 is repealed, preempted or is otherwise rendered inapplicable by
reason of law generally, or as to the Listed Chemical and/or the Covered Product, then
REVO shall provide written notice to Hammond of any asserted change in the law, and
shall have no further obligations pursuant to this Settlement Agreement with respect to,
and to the extent that, the Covered Product is so affected.
SARA HAMMOND
Date: By:
Printed Name: Sara Hammond
REVO INTERNATIONAL GIFT CO LTD
Date: By:
Printed Name: __________________
Title: Vice President
February 16, 2024
Wendy Phillips