Frequently Asked Questions
BASIC INFORMATION
[expand title=”WHY WAS THE NOTICE ISSUED?”]
A Court authorized the Notice because you have a right to know about a proposed Settlement of this class action, including the right to claim money, and about your options regarding this Settlement before the Court decides whether to give “Final Approval” to the Settlement. If the Court approves the parties’ Settlement Agreement, and if any appeals are resolved in favor of the Settlement, then payments will be made to those who qualify and timely submit a valid Claim Form. The Notice explains the lawsuit, the Settlement, your legal rights, what benefits are available, who may be eligible for them, and how to get them.
The Illinois state circuit court for Peoria County, Illinois is overseeing this class action. The case is called Walker, et al. v. Auto-Owners (Mutual) Insurance Company, No. 2023-LA-0000143. The persons who sued are called the “Plaintiffs,” and the company they sued is called the “Defendant.”
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[expand title=”WHICH COMPANY IS PART OF THE SETTLEMENT?”]
The Settlement includes Auto-Owners (Mutual) Insurance Company (“the Insurance Company”).
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[expand title=”WHAT IS THIS LAWSUIT ABOUT?”]
The lawsuit claims that the Insurance Company improperly deducted depreciation attributable to costs of labor and other nonmaterial items when adjusting some homeowners’ insurance claims in Arizona, Illinois, Missouri, and Wisconsin. The Insurance Company has maintained that it paid claims when reasonable and appropriate to do so and has denied all allegations that it acted wrongfully or unlawfully.
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[expand title=”WHY IS THIS A CLASS ACTION?”]
In a class action, one or more people called “Class Representatives” (in this case, Gerald Walker, III, Ada Walker, William Held, and Kastytis Latvys as Trustee for the Kastytis Latvys Revocable Living Trust) sue on behalf of people who have similar claims. All these people are a “Class” or “Class Members.” One court resolves the issues for all Class Members, except for those who exclude themselves from the Class.
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[expand title=”WHY IS THERE A SETTLEMENT?”]
The Court did not decide in favor of the Plaintiffs or the Insurance Company and has not found that the Insurance Company did anything wrong. Instead, both sides agreed to settle. That way, the parties avoid the cost of a trial and potentially an appeal, and the people who qualify will get compensation. The Class Representatives and their attorneys think the Settlement is best for all Class Members. The Settlement does not mean that the Insurance Company did anything wrong, no trial has occurred, and no merits determinations have been made.
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WHO IS IN THE SETTLEMENT
[expand title=”HOW DO I KNOW IF I AM PART OF THE SETTLEMENT?”]
If you received this Notice, then you have been identified as someone who is likely to be a member of the Class. The Class includes all of the Insurance Company’s property insurance policyholders, except for those excluded (see below), who made a structural damage claim: (a) for property located in the States of Arizona, Illinois, Missouri, or Wisconsin during the applicable Class Periods; that (b) resulted in an actual cash value payment from which Nonmaterial Depreciation was withheld, or that would have resulted in an actual cash value payment but for the withholding of Nonmaterial Depreciation causing the loss to drop below the applicable deductible.
A Structural Loss means physical damage to a home, building, manufactured home, condo, rental dwelling, or other structure in the States of Arizona, Illinois, Missouri, or Wisconsin while covered by a personal or commercial lines policy of insurance issued by the Insurance Company, including but not limited to a homeowners residential, manufactured home, condo, dwelling, commercial property, business owners, garage keepers, or rental property insurance policy.
A Covered Loss means a first party insurance claim for Structural Loss that (a) occurred during the Class Periods, and (b) resulted in an ACV Payment by the Insurance Company, or would have resulted in an ACV Payment but for the deduction of Nonmaterial Depreciation.
Nonmaterial Depreciation means, in the Xactimate estimating software platform, the amount of depreciation attributable to the selection of “Depreciate Non-Material,” “Depreciate Overhead and Profit” and/or “Depreciate Removal.”
The Class Periods mean the following time periods:
For Structural Loss claims made under property insurance policies insuring structures in the State of Arizona, a date of loss on or after October 20, 2014.
For Structural Loss claims made under property insurance policies insuring structures in the State of Illinois with a one-year suit limitations clause, a date of loss on or after May 13, 2020.
For Structural Loss claims made under property insurance policies insuring structures in the State of Illinois with a two-year suit limitations clause, a date of loss on or after May 13, 2019.
For Structural Loss claims made under property insurance policies insuring structures in the State of Missouri, a date of loss on or after April 27, 2012.
For Structural Loss claims made under property insurance policies insuring structures in the State of Wisconsin with a one-year suit limitations clause, a date of loss on or after April 27, 2021.
For Structural Loss claims made under property insurance policies insuring structures in the State of Wisconsin with a two-year suit limitations clause, a date of loss on or after April 27, 2020.
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[expand title=”ARE THERE EXCEPTIONS TO BEING INCLUDED IN THE CLASS?”]
Excluded from the Class are: (a) policyholders whose claims arose under policy forms, endorsements, or riders expressly permitting the deduction of Nonmaterial Depreciation within the text of the policy form, endorsement or rider, e.g., by express use of the words “depreciation” and “labor;” (b) policyholders who received one or more actual cash value payments, but not replacement cost value payments, that exhausted the applicable limits of insurance; (c) policyholders whose claims were denied or abandoned without actual cash value payments; (d) Defendant and its officers and directors; (e) members of the judiciary and their staff to whom this action is assigned and their immediate families; and (f) Class Counsel and their immediate families (collectively, “Exclusions”).
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[expand title=”I’M STILL NOT SURE I’M INCLUDED?”]
If you are not sure whether you are included in the Class, you may call the toll-free number 1-800-253-4349 with questions.
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THE SETTLEMENT BENEFITS – WHAT YOU GET IF YOU QUALIFY
[expand title=”HOW MUCH WILL SETTLEMENT PAYMENTS BE?”]
Class Members who complete and sign a Claim Form and timely mail it to the proper address or submit the Claim Form by uploading HERE, may be eligible for a payment. Under the Settlement, the Insurance Company has agreed to pay Class Members who timely submit valid claims determined as follows: (a) for Covered Losses occurring in the States of Illinois or Missouri for which all Nonmaterial Depreciation that was withheld from ACV Payments was not subsequently paid, 100% of the net estimated Nonmaterial Depreciation that was withheld from the actual cash value payment on the Class Member’s Covered Loss and not subsequently paid; (b) for Covered Losses occurring in the State of Arizona with a date of Structural Loss on or after October 20, 2018 for which all Nonmaterial Depreciation that was withheld from ACV Payments was not subsequently paid, 100% of the net estimated Nonmaterial Depreciation that was withheld from the actual cash value payment on the Class Member’s Covered Loss and not subsequently paid; (c) for Covered Losses occurring in the State of Arizona with a date of Structural Loss between October 20, 2014, and October 19, 2018, inclusive, and for which all Nonmaterial Depreciation that was withheld from ACV Payments was not subsequently paid, 50% of the net estimated Nonmaterial Depreciation that was withheld from the actual cash value payment on the Class Member’s Covered Loss and not subsequently paid; (d) for Covered Losses occurring in the State of Wisconsin for which all Nonmaterial Depreciation that was withheld from ACV Payments was not subsequently paid, 80% of the net estimated Nonmaterial Depreciation that was withheld from the actual cash value payment on the Class Member’s Covered Loss and not subsequently paid.
Additionally, simple interest shall be added to the above amounts at the following rates: 4% per annum for Covered Loss claims in the State of Wisconsin, 5% per annum for Covered Loss claims in the States of Illinois and Missouri, and 7.15% per annum for Covered Loss claims in the State of Arizona, calculated from the date of the last actual cash value payment to the date of Preliminary Approval.
Finally, for all Class Members who previously received all of their withheld Nonmaterial Depreciation from the Insurance Company, such Class Members who complete and sign a Claim Form and timely mail it to the proper address or submit the Claim Form by uploading it on the Settlement website, will receive a payment ranging from $25 to $75, depending on the amount of Nonmaterial Depreciation previously withheld by the Insurance Company.
You must submit a Claim Form in order to determine whether you are eligible for and the amount of your Settlement payment. If you do not, you will not receive a Settlement payment. For additional details on the payment terms, please see the Settlement Agreement, which is available HERE, or call toll free 1-800-253-4349.
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HOW TO GET A PAYMENT – SUBMITTING A CLAIM FORM
[expand title=”HOW CAN I GET A PAYMENT?”]
To find out whether you are eligible for a payment, you must complete and sign a Claim Form truthfully, accurately, and completely, to the best of your ability. You must mail the completed Claim Form to the following address, postmarked no later than February 26, 2024:
Auto-Owners Depreciation Settlement
c/o Atticus Administration, LLC
PO Box 64053
Saint Paul, MN 55164
You can also upload a completed Claim Form before midnight Central Daylight Time on February 26, 2024. A copy of the Claim Form was mailed with the Notice. You may obtain an additional Claim Form by calling the Settlement Administrator at 1-800-253-4349 or downloading a Claim Form HERE. If you sign a Claim Form as the representative of a deceased or incapacitated Class Member, you must also submit written proof that you are the legally authorized representative. If you are a contractor to whom an insurance claim was properly assigned by a policyholder, you must submit written proof of the assignment with the filed Claim Form.
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[expand title=”WHEN WILL I GET MY PAYMENT?”]
If the Court grants Final Approval of the Settlement, and if any appeals are resolved in favor of the Settlement, then payments will be mailed to eligible Class Members after the claims administration process is completed. This process can take time, so please be patient.
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[expand title=”WHAT AM I GIVING UP TO GET A PAYMENT OR STAY IN THE CLASS?”]
Unless you exclude yourself, you are staying in the Class, and that means you can’t individually sue the Insurance Company and the Released Persons over the claims settled in this case relating to the deduction of Nonmaterial Depreciation from payments for Covered Losses. It also means that all of the Court’s orders will apply to you and legally bind you.
If you submit a Claim Form, or if you do nothing and stay in the Class, you will agree to release all Released Claims against all Released Persons. “Released Claims” and “Released Persons” are defined in the Settlement Agreement, which you can request by calling 1-800-253-4349 or view HERE.
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EXCLUDING YOURSELF FROM THE SETTLEMENT
[expand title=”HOW DO I GET OUT OF THE SETTLEMENT?”]
To exclude yourself from the Settlement, you must mail a letter saying that you want to be excluded from the Walker, et al. v. Auto-Owners (Mutual) Insurance Company, Case No. 2023-LA-0000143 Settlement. Your letter must include your full name, address, and be signed. You must also include a clear statement that you wish to be excluded from the Settlement Class. You must mail your request for exclusion postmarked by December 13, 2023 to:
Auto-Owners Depreciation Settlement
c/o Atticus Administration, LLC
PO Box 64053
Saint Paul, MN 55164
More instructions are in the Settlement Agreement, which is HERE. You cannot exclude yourself by phone, by email, or on the Settlement Website. The right to exclude yourself from the proposed Settlement must be exercised individually, not as a member of a group and, except for a deceased or incapacitated Class Member, not by another person acting or purporting to act in a representative capacity. If you request exclusion on behalf of a deceased or incapacitated Class Member, you must also submit written proof that you are the legally authorized representative.
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[expand title=”IF I DON’T EXCLUDE MYSELF, CAN I SUE THE INSURANCE COMPANY FOR THE SAME THING LATER?”]
No. Unless you exclude yourself, you give up any right to sue the Insurance Company for the claims that this Settlement resolves. You must exclude yourself from the Class to individually sue the Insurance Company over the claims resolved by this Settlement. Remember, the exclusion deadline is December 13, 2023.
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[expand title=”IF I EXCLUDE MYSELF, CAN I GET A PAYMENT FROM THIS SETTLEMENT?”]
No. If you exclude yourself from the Settlement, do not submit a Claim Form to ask for a payment.
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THE LAWYERS REPRESENTING YOU
[expand title=”DO I HAVE A LAWYER IN THIS CASE?”]
The Court appointed the following law firms to represent you and other Class Members as Class Counsel:
Erik D. Peterson
ERIK PETERSON LAW OFFICES, PSC
110 W. Vine Street, Suite 300
Lexington, KY 40507
T: 800.614.1957
erik@eplo.law
T. Joseph Snodgrass
SNODGRASS LAW LLC
100 South Fifth Street, Suite 800
Minneapolis, MN 55402
T: 612.339.1421
jsnodgrass@snodgrass-law.com
J. Brandon McWherter
MCWHERTER SCOTT & BOBBITT, PLC
341 Cool Springs Blvd., Suite 230
Franklin, TN 37067
brandon@msb.law
David T. Butsch
Christopher E. Roberts
BUTSCH ROBERTS & ASSOCIATES LLC
231 S. Bemiston Avenue, Ste. 260
Clayton, MO 63105
croberts@butschroberts.com
Robert J. Hanauer
HANAUER LAW OFFICE, LLC
456 Fulton Street, Suite 200
Peoria, IL 61602
Tel: (309) 966-4423
rhanauer@hanauerlaw.com
You do not have to pay Class Counsel. If you want to be represented by your own lawyer, and potentially have that lawyer appear in court for you in this case, you may hire one at your own expense.
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[expand title=”HOW WILL THE LAWYERS AND CLASS REPRESENTATIVES BE PAID?”]
Class Counsel will ask the Court for up to $1,649,000 and will ask the Court to award each Class Representative $7,500 for their efforts in prosecuting this case (called a service award). The Insurance Company agreed not to oppose the request for attorneys’ fees and costs and service awards up to these amounts. The Court may award less than these amounts. The Insurance Company will pay these fees, expenses, and service awards in addition to amounts due to Class Members. These payments will not reduce the amount distributed to Class Members. The Insurance Company will also separately pay the costs to administer the Settlement.
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OBJECTING TO THE SETTLEMENT
[expand title=”HOW DO I TELL THE COURT IF I DON’T AGREE WITH THE SETTLEMENT?”]
If you don’t want the Court to approve the Settlement you must file a written objection with the Court and send a copy to the Settlement Administrator by the deadline noted below. You should include the name of the case (Walker, et al. v. Auto-Owners (Mutual) Insurance Company, Case No. 2023-LA-0000143), your full name, address, telephone number, your signature, the specific reasons why you object to the Settlement, and state whether you intend to appear at the Final Approval Hearing in person or through counsel. If you have a lawyer file an objection for you, he or she must follow all local rules and you must list the attorney’s name, address, and telephone number in the written objection filed with the Court.
If you intend to appear at the Final Approval Hearing to object to the Settlement, you must also provide the Court with your written objection a detailed statement of the specific legal and factual reasons for each objection, a list of any witnesses you may call at the hearing with each witness’s address and summary of the witness’s testimony, and a description of any documents you may present to the Court at the hearing. You or your lawyer may appear at the Final Approval Hearing if you have filed a written objection as provided above. (See the section on the “Court’s Final Approval Hearing” below). The right to object to the Proposed Settlement must be exercised individually by an individual Class Member, not as a member of a group and, except in the case of a deceased or incapacitated Class Member, not by another person acting or purporting to act in a representative capacity. If you file an objection as the representative of a Class Member, you must also submit written proof that you are the legally authorized representative.
File the objection with the Clerk of the Court at the address below by December 13, 2023.
Note: You may send it by mail, but it must be received and filed by the Clerk by this date.
Circuit Clerk
Peoria County Courthouse
324 Main Street, Rm. G-22
Peoria, IL 61602
And mail a copy of the objection to the Administrator at the following address so that it is postmarked by December 13, 2023:
Auto-Owners Depreciation Settlement
c/o Atticus Administration, LLC
PO Box 64053
Saint Paul, MN 55164
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[expand title=”WHAT’S THE DIFFERENCE BETWEEN OBJECTING AND ASKING TO BE EXCLUDED?”]
Objecting is simply telling the Court that you don’t like something about the Settlement. You can object only if you stay in the Class. Excluding yourself is telling the Court that you don’t want to be part of the Class or the Settlement. If you exclude yourself, you have no basis to object because the case no longer affects you. If you object, and the Court approves the Settlement anyway, you will still be legally bound by the result.
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THE COURT’S FINAL APPROVAL HEARING
[expand title=”WHEN AND WHERE WILL THE COURT DECIDE WHETHER TO APPROVE THE SETTLEMENT?”]
The Court has scheduled a Final Approval Hearing at 11:00 a.m. on January 12, 2024 at the Peoria County Courthouse, 324 Main Street, Courtroom 213 Peoria, Illinois. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them at that time. The Court may listen to people who have asked to speak about their objection. The Court may also decide how much to award Class Counsel for fees and expenses for representing the Class and how much to award each Class Representative as a service award. At or after the hearing, the Court will decide whether to approve the Settlement. It is not known how long this decision will take. Check this website often to make sure the hearing hasn’t been rescheduled, and to see whether the Court has scheduled the hearing to proceed by video conference or teleconference only, instead of in person.
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[expand title=”DO I HAVE TO COME TO THE HEARING?”]
You are not required to attend, and Class Counsel will answer any questions that the Court may have. If you wish to attend the hearing, you may come at your own expense. You may also pay your own lawyer to attend, but it’s not necessary, unless you choose to have a lawyer appear on your behalf to object to the Settlement.
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[expand title=”MAY I SPEAK AT THE HEARING?”]
If you submitted a proper written objection to the Settlement, you or your lawyer acting on your behalf may speak at the Final Approval Hearing. You cannot speak at the Hearing if you exclude yourself.
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IF YOU DO NOTHING
[expand title=”WHAT HAPPENS IF I DO NOTHING AT ALL?”]
If you do nothing, you’ll get no payment from this Settlement. But, unless you exclude yourself from the Settlement, you won’t be able to individually sue for the claims resolved in this case.
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GETTING MORE INFORMATION
[expand title=”HOW DO I GET MORE INFORMATION ABOUT THE SETTLEMENT?”]
The Notice summarizes the proposed Settlement. More details are in the Settlement Agreement. If you have questions or if you want to request a copy of the Settlement Agreement, which provides more information, call 1-800-253-4349 or view a copy HERE.
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PLEASE DO NOT CALL OR WRITE THE COURT, THE JUDGE OR HIS STAFF, OR THE INSURANCE COMPANY OR ITS COUNSEL FOR INFORMATION OR ADVICE ABOUT THE SETTLEMENT