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.
On May 5, 2009, the Missouri Court of Appeals reinstated the jury's March 9,
2007 verdict in its entirety. A copy of the Court's opinion is attached
here. Further information will be posted as it becomes available.
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.
|
