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Insurance
Bad Faith
Failure to Pay Actual Cash Value

Lester I. Spielman, individually and on behalf of all others similarly situated v. United Services Automobile Assocation, USAA Casualty Insurance Company, USAA General Indemnity Company, and Garrison Property and Casualty Insurance Company

Published: Mar. 29, 2024 | Result Date: Apr. 17, 2023 | Filing Date: Feb. 22, 2019 |

Case number: 2:19-cv-01359-TJH-MAA Settlement –  $3,050,000

Judge

Terry J. Hatter Jr.

Court

CD CA


Attorneys

Plaintiff

Annick M. Persinger
(Tycko & Zavareei LLP)

Glenn E. Chappell
(Tycko & Zavareei LLP)

Scott A. Edelsberg
(Edelsberg Law PA)

Jason H. Alperstein
(Kopelowitz, Ostrow, Ferguson, Weiselberg & Gilbert)

Jeff Ostrow
(Kopelowitz, Ostrow, Ferguson, Weiselberg & Gilbert)

Jonathan M. Streisfeld
(Kopelowitz, Ostrow, Ferguson, Weiselberg & Gilbert)

Andrew J. Shamis
(Shamis & Gantile PA)


Defendant

John S. Purcell
(ArentFox Schiff LLP)

David G. Bayles
(ArentFox Schiff LLP)


Facts

United Services Automobile Association and its entities provide insurance policies to military personnel, veterans, and their families. Lester Spielman filed a class action suit against the insurance companies for breach of contract claims.

Contentions

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendants perpetuated a practice wherein they refused to pay the full actual cash value or total loss payments for leased vehicles that were totaled and covered by their companies. Specifically, defendants failed to pay the full amount of regulatory fees and sales/use tax on the leased vehicles when calculating the actual cash value, resulting in the underpayment of the class members for total loss vehicles that had been leased.

DEFENDANTS' CONTENTIONS: Defendants denied any wrongdoing, maintaining that they complied with and exceeded their obligations not just under state law but also with their insurance policies.

Result

The parties agreed to settle for $3.05 million.


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