Wade Clark Mulcahy LLP

<p style="text-align: justify;">As we've recently seen, <a href="https://www.wcmlaw.com/2020/02/court-denies-class-certification-rules-each-insurance-policy-must-be-considered-as-an-individual-contract/">some courts have seen</a> the wisdom in treating insurance policies as individual contracts.  But that may or may not be the case for Progressive Insurance, which faces a class action lawsuit in New Jersey Federal Court for allegations that it stiffed thousands of customers on fees such as title transfer and registration transfer fees when covering insureds’ claims for cars that were deemed totaled.</p>
<p style="text-align: justify;">The lawsuit sounds in breach of contract as plaintiff’s are alleging that Progressive and New Jersey Insurance Co. violated their policies by failing to pay the costs of those fees as part of the actual cash value of their vehicles. Plaintiff’s argued that an ACV policy indemnifies insureds such that the payment for the loss of a legally titled and registered vehicle legally operable in New Jersey necessarily includes, at minimum, an amount sufficient to legally operate a vehicle in New Jersey, just as the insureds did prior to the loss.</p>
<p style="text-align: justify;">Plaintiff’s attorneys are currently arguing that the case meets the requirements for Rule 23 certification, including that a class action is a superior means of resolving the claims.</p>
<p style="text-align: justify;">We will continue to monitor this case, <em><a href="https://www.wcmlaw.com/wp-content/uploads/2020/02/Ferrara-et-al.-v.-Progressive-Garden-State-Ins.-Co..pdf">Ferrara et al. v. Progressive Garden State Ins. Co.</a>,</em> C.A. No. 2:20-cv-01183 (SRC)(CLW).</p>
<p style="text-align: justify;"><span>Thanks to Jonathan Avolio for his contribution to this post.  Please email <a href="mailto:mgauvin@wcmlaw.com">Mike Gauvin </a></span><span>with any questions.</span></p>