Holcomb-Jones v. StoneMor Partners L.P.

On October 10, 2018, Earnest Holcomb-Jones and William Jones filed a federal class action against StoneMor Partners L.P., one of the largest cemetery and funeral home operators in the United States. The lawsuit, brought in the Eastern District of Pennsylvania, accused StoneMor of systematically charging consumers for perpetual care and merchandise fees while failing to deposit those funds into required trust accounts. The complaint alleged breach of contract, fraud, and violations of Pennsylvania’s consumer protection law. Plaintiffs sought damages and injunctive relief on behalf of a nationwide class who had purchased cemetery goods and services. After extensive discovery, the parties reached a preliminary settlement in 2020, which the court preliminarily approved later that year.

The case did not go to trial. In 2020, StoneMor agreed to a settlement, establishing a $36.5 million fund to compensate class members and committing to implement reforms ensuring future compliance with trust deposit requirements. The court granted final approval of the settlement in 2021, resolving the claims without any admission of liability by the defendants.

Whether StoneMor Partners L.P. engaged in deceptive acts by collecting perpetual care and other fees from consumers without placing the required portions into trust funds, thereby breaching contractual obligations and violating state consumer protection statutes.

The case shed light on widespread deficiencies in perpetual care trust funding within the death care industry, prompting increased regulatory oversight and legislative interest. It provided monetary relief to thousands of consumers and pressured cemetery operators nationwide to review their trust administration practices. The settlement also served as a significant warning regarding corporate compliance with consumer protection laws in the funeral and cemetery sector.