Mitchell v. Allstate Vehicle and Property Insurance Company

CourtDistrict Court, S.D. Alabama
DecidedAugust 3, 2023
Docket2:21-cv-00347
StatusUnknown

This text of Mitchell v. Allstate Vehicle and Property Insurance Company (Mitchell v. Allstate Vehicle and Property Insurance Company) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mitchell v. Allstate Vehicle and Property Insurance Company, (S.D. Ala. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ALABAMA NORTHERN DIVISION

JAMES MITCHELL, et al., ) ) Plaintiffs, ) ) v. ) CIVIL ACT. NO. 2:21-cv-347-TFM-B ) ALLSTATE VEHICLE AND ) PROPERTY INSURANCE COMPANY, ) et al., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER

Pending before the Court is Plaintiffs’ Unopposed Motion for Final Approval of Class Action Settlement (Doc. 56, filed 7/17/23), accompanied by the brief in support (Doc. 57). Also before the Court is a Motion for Attorneys’ Fees, Litigation Costs, and Request for Service Awards pursuant to Federal Rule of Civil Procedure 23(e)(2). See Doc. 54. James Mitchell, as Personal Representative of the Estate of Lula Mitchell, Larry Johnson, Joyce Johnson, Thelma Petty-Cosey, Sarah Roberson, Maurice Williams, and Telecia Hardy, individually and on behalf of the Settlement Class (collectively “Plaintiffs” or “Representative Plaintiffs”) and Defendants Allstate Vehicle and Property Insurance Company, Allstate Insurance Company, and Esurance Insurance Company (collectively “Defendants”), individually and on behalf of themselves and certain Allstate-affiliated entities identified herein, agreed to settle this Action pursuant to the terms and conditions set forth in the Class Action Stipulation of Settlement Agreement (“Agreement”).1 On March 7, 2023, the Court granted preliminary approval of the proposed class action settlement set forth in the Agreement and provisionally certified the Settlement Class for

1 All capitalized terms used herein that are not otherwise defined have the meanings ascribed to them in the parties’ Agreement. settlement purposes only, and on July 24, 2023, the Court held a duly noticed final approval hearing. The Court has considered the Eleventh Circuit’s seven factors for evaluation of a class action settlement and all the Rule 23(e)(2) factors application to the potential approval of the Settlement. The Court independently evaluated the Court record, the Settlement, the Motions, and

the responses and lack of responses to the class notice by the class members. The Court finds and holds as follows: FINDINGS OF FACT 1. Plaintiffs filed the Complaint, alleging that Defendants violated applicable law and breached their insurance contracts by improperly deducting Nonmaterial Depreciation from actual cash value payments when adjusting Structural Loss Claims under Alabama property insurance policies. Defendants have denied, and still deny, any liability, wrongdoing, and damages with respect to the matters alleged in the Complaint. 2. After litigation between the Parties and arms-length negotiations between Class

Counsel and Defendants’ Counsel, Plaintiffs and Defendants reach a settlement on behalf of a class of policyholders of the Defendants and “Allstate,”2 that provides substantial benefits to the Settlement Class, in return for a release and dismissal of claims against Allstate. The Settlement was reached after the Parties had engaged in extensive and lengthy negotiations, and in accordance with the highest ethical standards for class action settlement negotiations, settlement relief to the class members was agreed to prior to negotiations concerning any potential award of attorneys’ fees, litigation expenses, or service awards. During the settlement negotiations, Class Counsel was

2 In addition to Defendants, “Allstate” also includes Allstate Indemnity Company, Allstate Property and Casualty Insurance Company, Encompass Home and Auto Insurance Company, Encompass Insurance Company of America, Encompass Property and Casualty Company, Encompass Indemnity Company, and North Light Specialty Insurance Company. well-positioned to evaluate the benefits of the Settlement, taking into account the expense, risk, and uncertainty of protracted litigation with respect to numerous difficult questions of law and fact. 3. Plaintiffs and Allstate executed the Agreement and exhibits thereto on December 15, 2022. See Doc. 50-1.

4. The Agreement is hereby incorporated by reference in this Final Judgment Order, and the definitions and terms set forth in the Agreement are hereby adopted and incorporated into and will have the same meanings in this Final Judgment Order. 5. On December 15, 2022, Plaintiff filed with the Court the Agreement along with an Unopposed Motion for Preliminary Approval of Class Settlement. 6. On March 7, 2023, the Court, entered the Preliminary Approval Order, preliminarily approving the Agreement, preliminarily certifying the Settlement Class for settlement purposes only, and scheduling a hearing for July 24, 2023 at 9:00 a.m. to consider final approval of the Proposed Settlement and other actions described in the Preliminary Approval Order

(“Final Approval Hearing”). See Doc. 52. 7. As part of its Preliminary Approval Order, the Court certified for settlement purposes a class (“Settlement Class”) defined as: All policyholders, (except for those explicitly excluded below), insured under any property insurance policy issued by Allstate, who made, who made: (i) a Structural Loss claim for property located in the State of Alabama during the Class Period (August 3, 2015 through the time of Class Notice); (ii) where Allstate issued payment based on an Xactimate® estimate; and (iii) that resulted in an ACV Payment from which Nonmaterial Depreciation was withheld.

The Settlement Class does not include: (i) policyholders whose claims arose under labor permissive policy forms, i.e., those forms and endorsements expressly permitting the “depreciation” of “labor” within the text of the policy form (ii) policyholders who received one or more ACV Payments for a claim that exhausted the applicable limits of insurance; (iii) policyholders whose claims were denied or abandoned without an ACV Payment; (iv) Allstate and its officers and directors; (v) members of the judiciary and their staff to whom this Action is assigned and their immediate families; and (vi) Class Counsel and their immediate families.

8. On July 17, 2023, Plaintiffs applied to the Court for final approval of the terms of the Proposed Settlement and for the entry of this Final Judgment Order. In support, Plaintiffs submitted extensive argument and authority, along with various exhibits and evidence showing, inter alia: the dissemination and adequacy of the Class Notice, Claim Form, and Postcard Notice; the establishment of an automated Toll-free Number and Settlement Website; the names of potential Class Members who, per the terms of the Agreement, submitted a timely and proper request for exclusion from the Settlement Class; the negotiation of the Agreement; and the fairness, reasonableness, and adequacy of the Agreement. 9. In addition, on June 12, 2023, Class Counsel submitted their Unopposed Motion for Attorneys’ Fees, Litigation Costs, and Expenses and Request for Service Awards, which included evidence as to the fairness and reasonableness of those requests, as well as extensive argument and authority. Doc. 54. 10. At the Final Approval Hearing, Plaintiffs offered the following evidence in support of her motion concerning attorneys’ fees, costs, and a service award: Exhibit No. Description 1 Declaration of Erik D. Peterson 2 Declaration of J. Brandon McWherter 3 Declaration of T. Joseph Snodgrass

The Court admitted Plaintiffs’ Exhibits 1 through 3 into evidence for all purposes. The Court also admits the Declaration of Geary R. Godfrey Regarding Settlement Administration. Doc. 58. Geary Godfrey is the Project Manager of Epiq Class Action and Claims Solutions, Inc., which served as the Administrator in this litigation. 11.

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Mitchell v. Allstate Vehicle and Property Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-v-allstate-vehicle-and-property-insurance-company-alsd-2023.