Shields v. Metropolitan Property and Casualty Insurance Company

CourtDistrict Court, N.D. Mississippi
DecidedMay 25, 2022
Docket1:19-cv-00222
StatusUnknown

This text of Shields v. Metropolitan Property and Casualty Insurance Company (Shields v. Metropolitan Property and Casualty Insurance Company) is published on Counsel Stack Legal Research, covering District Court, N.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shields v. Metropolitan Property and Casualty Insurance Company, (N.D. Miss. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF MISSISSIPPI ABERDEEN DIVISION TASHAL SHIELDS and LLOYD HACHAT individually and on behalf of all others similarly situated, Plaintiffs, Case No. 1:19-cv-00222-GHD-RP Hon. Glen H. Davidson v. METROPOLITAN PROPERTY AND CASUALTY INSURANCE COMPANY and METROPOLITAN GROUP PROPERTY AND CASUALTY INSURANCE COMPANY, Defendants. FINAL JUDGMENT AND ORDER Plaintiffs Tashal Shields (“Plaintiffs Shields”) and Plaintiffs Lloyd Hachat (“Plaintiffs Hachat”) (collectively, “Plaintiffs” or “Representative Plaintiffs”), individually and on behalf of the Settlement Class and Defendants Metropolitan Property and Casualty Insurance Company and Metropolitan Group Property and Casualty Insurance Company (collectively, “Defendants”) agreed to settle this Action pursuant to the terms and conditions set forth in the March 10, 2022 Amended Class Action Stipulation of Settlement Agreement (““Agreement”).! On March 15, 2022, the Court granted preliminary approval of the proposed class action settlement set forth in the Agreement and provisionally certified the Settlement Class for settlement purposes only, and on May 25, 2022, the Court held a duly noticed final approval hearing.

' All capitalized terms used herein that are not otherwise defined have the meanings ascribed to them in the Agreement.

Before the Court is Plaintiffs’ Unopposed Motion for Final Approval of Class Settlement and Motion for Service Awards to Class Representatives and Awards of Attorneys’ Fees, Costs, and Litigation Expenses pursuant to Federal Rule of Civil Procedure (“Rule”) 23(e)(2) (collectively, the Memoranda”). Dkts. 83 and 85. The Court, having read and considered the Agreement and the Memoranda, having received evidence in advance of and at the hearing, and having heard argument by counsel, finds and holds as follows: FINDINGS OF FACT 1. Plaintiffs filed the operative complaint, Second Amended Class Action Complaint (the “Second Amended Complaint”), alleging that Defendants violated applicable law and breached its contracts by improperly deducting Nonmaterial Depreciation from actual cash value payments when adjusting Structural Loss Claims under Illinois, Kentucky, Mississippi, Ohio, and Tennessee homeowners insurance policies. Defendants have denied, and still deny, any liability, wrongdoing, and damages with respect to the matters alleged in the Second Amended Complaint. 2. After litigation between the Parties and arms’-length negotiations between Class Counsel and Defendants’ counsel, Plaintiffs and Defendants reached a settlement that provides substantial benefits to the Settlement Class, in return for a release and dismissal of claims against Metropolitan.” 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

2 As defined in the Settlement Agreement, Metropolitan means Metropolitan Property and Casualty Insurance Company, now known as Farmers Property and Casualty Insurance Company; Metropolitan Group Property and Casualty Insurance Company, now known as Farmers Group Property and Casualty Insurance Company; Metropolitan Casualty Insurance Company, now known as Farmers Casualty Insurance Company; Metropolitan Direct Property and Casualty Insurance Company, now known as Farmers Direct Property and Casualty Insurance Company; Economy Premier Assurance Company; and Economy Fire & Casualty Company.

negotiations, settlement relief to the class members was agreed to prior to negotiations concerning any potential award of attorneys’ fees, litigation expenses, or service award. During the settlement negotiations, Class Counsel was 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 Defendants executed the initial version of the Class Action Stipulation of Settlement Agreement and exhibits thereto on January 18, 2022. Thereafter, the Parties executed the operative Agreement on March 10, 2022, which corrected the class period for Ohio claimants, and which was filed with the Court at Dkt. 79-1. 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 January 18, 2022, Plaintiffs filed with the Court the initial version of the Class Action Stipulation of Settlement Agreement along with an Unopposed Motion for Preliminary Approval of Class Settlement, Certification of the Settlement Class, and Scheduling a Final Approval Hearing. On January 21, 2022, the Court granted the January 18, 2022 Motion for Preliminary Approval. On March 10, 2022, the Parties filed the Joint Motion to Approve a Proposed Amendment to the Class Action Stipulation of Settlement and Enter Amended Preliminary Approval Order, along with the Settlement. 6. On March 15, 2022, the Court, entered the Amended Preliminary Approval Order, preliminarily approving the Agreement, preliminarily certifying the Settlement Class for settlement purposes only, and scheduling a hearing for May 25, 2022 at 10:00 a.m. to consider

final approval of the Proposed Settlement and other actions described in the Preliminary Approval Order (“Final Approval Hearing”). Dkt. 81. 7. As part of its Amended Preliminary Approval Order, the Court certified for settlement purposes a class (“Settlement Class”) defined as: All Class Members within the Illinois Settlement Class, Kentucky Settlement Class, Mississippi Settlement Class, Ohio Settlement Class or Tennessee Settlement Class (except for those explicitly excluded below), which are defined as follows: “TIlinois Settlement Class” means all policyholders, (except for those explicitly excluded below), under any property insurance policy issued by Metropolitan, who made: (i)a Structural Loss claim for property located in the State of Illinois between June 12, 2019 and November 16, 2020; and (ii)-that resulted in an ACV Payment from which Nonmaterial Depreciation was withheld, or that would have resulted in an ACV Payment, but for the withholding of Nonmaterial Depreciation causing the loss to drop below the applicable deductible. “Kentucky Settlement Class” means all policyholders, (except for those explicitly excluded below), under any property insurance policy issued by Metropolitan, who made: (i) a Structural Loss claim for property located in the State of Kentucky between April 1, 2019 and November 16, 2020; and (ii) that resulted in an ACV Payment from which Nonmaterial Depreciation was withheld, or that would have resulted in an ACV Payment, but for the withholding of Nonmaterial Depreciation causing the loss to drop below the applicable deductible. “Mississippi Settlement Class” means all policyholders, (except for those explicitly excluded below), under any property insurance policy issued by Metropolitan, who made: (i) a Structural Loss claim for property located in the State of Mississippi between December 17, 2016 and November 16, 2020; and (ii) that resulted in an ACV Payment from which Nonmaterial Depreciation was withheld, or that would have resulted in an ACV Payment, but for the withholding of Nonmaterial Depreciation causing the loss to drop below the applicable deductible.

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Shields v. Metropolitan Property and Casualty Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shields-v-metropolitan-property-and-casualty-insurance-company-msnd-2022.