$48.5 Million Settlement Approved in Diminished Value Class Action Lawsuit Against Farmers Insurance
TACOMA, WA--(Marketwired - February 05, 2014) - Class Counsel for Plaintiffs; Reich and Binstock, L.L.P., the Law Office of Stephen M. Hansen, the Law Office of Scott P. Nealey, Susman Godfrey LLP, and Lieff Cabraser Heimann & Bernstein, LLP announced today that Judge Vicki L. Hogan of the Pierce County Superior Court entered a final judgment approving the settlement and dismissing all claims in the action with prejudice in the diminished value class action lawsuit Moeller v. Farmers Ins. Co. of Washington, Case No. 99-2-07850-6 (Pierce County, WA).
Plaintiffs alleged that Farmers failed to pay for "diminished value," which is the loss in value suffered by certain vehicles after they are repaired, in adjusting and settling certain types of collision and comprehensive losses with its insureds. Plaintiffs alleged that Farmers' failure to pay for diminished value was a breach of contract and a violation of Washington's Consumer Protection Act. During the litigation, the Washington Supreme Court interpreted the contract to cover diminished value under the collision and comprehensive portions of the policy, as written, and the case was set for trial on August 19, 2013 when it was ultimately resolved. Farmers denies any liability.
The settlement resolves all the Class Members Claims against Farmers Ins. Co of Washington ("Farmers") in exchange for the payment by Farmers of up to $48.5 million. Certain Farmers insureds who were members of the Class and timely submitted valid claims will be entitled to monetary compensation from the settlement.
The settlement covered individuals who met the following requirements: (1) they had an automobile insurance policy with Farmers Ins. Co. of Washington, (2) they received payment between May 30, 1993 to September 13, 2002 for an accident involving structural (frame) damage and/or deformed sheet metal and/or where body or paint work was needed, (3) they did not receive payment for diminished value, (4) the repair estimate was at least $1,000, (5) the vehicle was at most six years old, and (6) the vehicle had less than 90,000 miles on it.
Counsel for named plaintiffs and class members are Debra Brewer Hayes of Reich & Binstock, LLP; Stephen M. Hansen of the Law Offices of Stephen M. Hansen, P.S.; Scott P. Nealey of the Law Offices of Scott P. Nealey, Terry Oxford of Susman Godfrey LLP and Michael W. Sobol of Lieff Cabraser Heimann & Bernstein, LLP.
Source: Nealey Law | MarketWire