Friday, July 9, 1999

Two more lawsuits were filed in Pierce County Superior Court for the State of Washington representing policyholders in this state against their insurers. The suits allege that the insurance companies failed to honor the automobile insurance contract with their policyholders by refusing to pay the loss in value to the insured’s vehicle following a collision. This now totals five such lawsuits in Washington State against insurance companies.

Consumer protection lawyers filed class action lawsuits representing policyholders in this state against United Services Automobile Association (USAA) and Unitrin, Inc. (Financial Indemnity Company). Debra Brewer Hayes of Houston-based Reich & Binstock and Stephen M. Hansen of Lowenberg, Lopez & Hansen filed the class action lawsuit against these insurers for breach of contract and unjust enrichment. Previous lawsuits have been file against Geico Insurance, Farmers Insurance, and Allstate Insurance in the last three months.

The USAA and Unitrin lawsuits also encompass these companies’ insureds in the states of Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Indiana, Iowa, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, and Utah.

The lawsuits state that the insurance company knowingly ignored the fact that damaged automobiles, by the very nature of their damage and subsequent repairs, are worth less than similar automobiles which have not been damaged. Elizabeth Fishel, a Financial Indemnity Company (FIC/Unitrin) policyholder from Tacoma, Washington, is acting as the class representative in that case. Roxette Busani of Yelm is acting as the class representative against USAA.

They submitted proof, obtained from Stroud’s Auto Rebuild, Inc. using the Wreck Check system, of the diminished value on their cars to their respective insurance companies. Both companies refused to pay the claims. Now, the lawsuits seek recovery of the loss in value to their vehicles and for all other USAA and Unitrin policyholders for the diminished value as a proper damage for which parties should be compensated.

The trial dates are set for November of next year.

Consumers who feel that their vehicle has not been restored to its pre-loss condition and value may be entitled to diminished value and re-repairs at no cost to them. Diminished value claims may be able to be made up to six years after an accident. To obtain an appraisal of vehicles involved in accidents to determine the diminished value, consumers may contact Mike Harber at Stroud’s Auto Rebuild, Inc. (253-474-0709) for assistance. Stroud’s is also on the internet at www.stroudsautorebuild.com. For additional information regarding the lawsuit, contact Debra Brewer Hayes at (800) 622-7271.