SAN DIEGO–LAWFUEL – Class Actions –A jury in Kansas City, MO awarded more than $17 million to a group of policyholders in a class action lawsuit against American Family Mutual Insurance Co. regarding the company’s policy of specifying after-market auto parts and omitting certain repair procedures in its repair estimates, according to Lerach Coughlin Stoia Geller Rudman & Robbins LLP, counsel for the plaintiffs.
The verdict affects approximately 315,000 Missouri residents with claims for vehicle repairs between May 1990 and December 2004. The lawsuit alleged that American Family, based in Madison, WI, specified non-original equipment manufactured parts in paying to repair policyholders’ damaged vehicles.
“The exceptional jury in Kansas City recognized that American Family was not satisfying its obligation under its policy contracts and awarded the plaintiffs accordingly,” said Ted Pintar, counsel at Lerach Coughlin. “This sends a clear message to American Family and to other insurance companies around the country with similar policies in place.”
The suit was filed in May 2000 and certified as a class action in December 2001.
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