Welcome to the Missouri Auto Insurance Litigation Website
UPDATED STATUS: On Friday March 9, 2007, a unanimous Jackson County Missouri Jury rendered a verdict in favor of the Class, finding that American Family breached its insurance policy contract by paying for inferior quality Crash Parts and by failing to pay for certain necessary repair procedures. The jury awarded the Class nearly $17.4 million in compensatory damages. A copy of the verdict form is attached.
On June 29, 2007, Judge Messina granted American Family's Motion for Judgment Notwithstanding the Verdict, overturning the jury's damages award in favor of the class. Plaintiffs are appealing the Order.
If you made a claim for vehicle repairs between May 11, 1990 and December 1, 2004 under an American Family Mutual Insurance Company automobile policy issued in Missouri and received payment based on an estimate which included non-OEM parts and/or did not provide for certain repairs to your vehicle, then you are a class member.
If you received payment for a total loss,
you are not part of the class.
The Class definition may be refined or narrowed
in the course of the litigation by court order.
ANSWERS TO COMMON QUESTIONS
What is this suit about?
Plaintiffs (those bringing this suit) claim that American Family pays less than required under its policies to repair its insureds’ vehicles. Plaintiffs claim this happens in two ways: (1) paying for allegedly inferior Non-OEM (Non-Original Equipment Manufacturer) Crash Parts; and (2) using an estimating software program that allegedly systemically omits payment for certain repairs. Plaintiffs allege that American Family breaches its policy contracts with members of the Class when it pays claims based on repair estimates that specify Non-OEM parts and fail to include specific repairs. Plaintiffs seek legal damages on behalf of the Class and injunctive relief against American Family. American Family denies plaintiffs’ allegations and asserts numerous facts and defenses to plaintiffs’ claims including, but not limited to, the following:
- American Family contends that its insurance policies do not require that OEM crash parts be used for all repairs and in all circumstances as claimed by plaintiffs.
- American Family contends that it complies with a 1987 Missouri Department of Insurance Rule that authorizes automobile insurers to specify Non-OEM crash parts for the repair of a vehicle so long as the specified parts are of like kind and quality to the parts being replaced as they actually existed just prior to the accident.
- In addition to meeting the requirements of the above Rule, American Family contends that it guarantees that its insureds will be satisfied with the fit, finish and corrosion resistance of all Non-OEM crash parts it specifies.
- American Family contends that the so-called omitted repairs were not omitted by body shops or by American Family in preparing estimates or were not necessary to repair the vehicle to its pre-loss condition.
- American Family contends that its obligation under Missouri law is to pay for a repair that will return the damaged vehicle to the condition it was in just prior to the accident, but that plaintiffs insist that the condition of insured vehicles prior to the accident or after the repair is irrelevant.
- American Family contends that plaintiffs depend on the contention that all Non-OEM crash parts are inferior to all OEM crash parts and are always incapable of repairing any vehicle to pre-accident condition.
What are Non-OEM Crash Parts?
Non-OEM Crash Parts are auto parts not manufactured by or for a vehicle’s original equipment manufacturer. The Non-OEM Crash Parts involved in this case are: fenders, hoods, doors, deck lids, quarter panels, rear outer panels, front end panels, header panels, filler panels, door shells, pickup truck beds, box sides and tail gates, radiator and grill support panels, grilles, head and tail lamp mounting panels/brackets/housing/lenses, doors, bumpers (excluding chrome), bumper covers/face bars, and bumper brackets/supports.
What are Omitted Repairs?
The Omitted Repairs involved is this case are: seat belt check, rust proofing, weld through primer, undercoating, flex additive, masking inner surfaces, front wheel alignment, four wheel alignment, aim lamps and replace EPA label.
What is a class action?
A class action is a legal device to allow a number of individual claims to be resolved in one lawsuit. Class certification means that the results of this suit will be final against American Family and everyone who has not chosen to exclude themselves from the Class. The Court certified a plaintiff Class on December 14, 2001; this Class was limited to Missouri residents by the Missouri Supreme Court on May 13, 2003. The Court’s class certification order is not an expression by the Court as to the merits of plaintiffs’ claims or American Family’s defenses.
Am I a class member?
You are a Class member if you received a repair estimate specifying any of the Non-OEM Crash Parts listed above. You are a Class member if you received a repair estimate that fails to include any of the Omitted Repairs listed above.
You are a Class member only if you received a repair estimate under your own American Family insurance policy. You are not a Class member if (i) you were paid for a total loss of your vehicle; or (ii) your vehicle damage claim only included a claim for glass repair; or (iii) you are not an American Family insured even if your vehicle repairs were paid for by American Family after an accident caused by an American Family insured. You are also not a Class member if you are a director, officer, agent and/or employee of American Family or if you have a claim in excess of $75,000.
How do I know if Non-OEM Crash Parts were specified on my estimate?
Non-OEM Crash Parts will be reflected either in American Family’s records or on your American Family repair estimate. Such parts may be indicated by the language “Quality repl. Part” or other similar terms located next to one or more of the Non-OEM Parts identified above in place of the OEM part number.
Will I be charged for the services of class counsel?
No. You will not be charged for Class counsel’s services. Class counsel were appointed by the Court to represent the Class. If these lawyers obtain a recovery for the Class, Class counsel may apply to the Court for payment of their reasonable attorneys’ fees and costs, which may be paid out of any funds recovered on behalf of the Class.
What will I recover if plaintiffs are successful?
Plaintiffs are seeking legal damages and injunctive relief for American Family’s alleged breach of contract. You will only be entitled to compensation if plaintiffs are successful. Being a member of the Class is no guarantee of a recovery of legal damages.
Need I do anything at this point?
If you wish to remain a member of the Class, you need do nothing at this time. You will be allowed to participate in any recovery through a claims process the Court will approve.
If you do not wish to be a member of the Class, you may “opt-out” by writing to the following address and expressly stating that you wish to be excluded from the Class:
Class Counsel
c/o American Family Auto
Class Action Information Center
P.O. Box 24691
West Palm Beach, FL 33416
This letter must be postmarked no later than January 16, 2006. If you exclude yourself from the Class, you cannot participate in any recovery for the Class and you will not be bound by any Court orders or judgments.
What happens next?
You will be notified of any recovery process and how to collect such recovery at that time. As with all litigation, there is no guarantee as to any results.
Further questions?
You may email Class Cousel at amfam@completeclaimsolutions.com or send a letter with your questions to:
Class Counsel
c/o American Family Auto
Class Action Information Center
P.O. Box 24691
West Palm Beach, FL 33416
PLEASE DO NOT CALL OR WRITE THE CLERK OF THE COURT.
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