IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON IN AND FOR THE COUNTY OF PIERCE STEPHEN LAUGHLIN, JAMES POPWELL, and VICKI WILEY, on behalf of themselves and all others similarly situated, Plaintiffs, v. ALLSTATE INSURANCE COMPANY, et al., Defendants. Case No. 02-2-10380-0
NOTICE OF PROPOSED CLASS ACTION SETTLEMENT PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY A SETTLEMENT HAS BEEN PROPOSED THAT MAY AFFECT YOUR RIGHTS. IF YOU ARE A MEMBER OF THE CLASS DESCRIBED BELOW, YOU MAY BE ENTITLED TO SHARE IN THE SETTLEMENT FUND. BASIC INFORMATION 1. WHY DID I GET THIS SETTLEMENT NOTICE? You may be eligible for benefits that will be provided as part of the proposed settlement of a class action lawsuit on behalf of people who made claims on auto insurance issued by Allstate Insurance Company, Allstate Indemnity Company, Allstate Property and Casualty Insurance Company, Allstate New Jersey Insurance Company, Allstate New Jersey Property and Casualty Insurance Company or Allstate Fire and Casualty Insurance Company (collectively referred to as “Allstate” in this Notice). The Court sent you this notice because you have a right to know about a proposed settlement of a class action lawsuit, and about all of your options, before the Court decides whether to approve the settlement. If the Court approves it and after objections and appeals are favorably resolved, an administrator appointed by the Court will make the payments that the settlement allows. You will be informed of the progress of the settlement. This Notice explains the lawsuit, the settlement, your legal rights, what benefits are available, who is eligible for them, and how to get benefits if you are eligible. The Court in charge of the case is the Pierce County Superior Court for the State of Washington, and the case is known as Laughlin et al. v. Allstate Ins. Co. et al, Case No. 02-2-10380-0. The people who sued are called Plaintiffs, and the companies they sued are called the Defendants. 2. WHAT IS THIS LAWSUIT ABOUT? The lawsuit relates to how Allstate addresses claims that vehicles lose value after they have been involved in accidents even if the vehicle is properly repaired (also known as “diminished value”). Plaintiffs have alleged that Allstate has not properly addressed diminished value for claims made under the Uninsured (“UM”) or Underinsured (“UIM”) property damage coverage sections of its automobile policy. Allstate denies it did anything wrong. 3. WHY IS THIS A CLASS ACTION? In a class action, one or more people called Class Representatives (in this case, Stephen Laughlin, James Popwell, and Vicki Wiley), 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. Pierce County Superior Court Judge Frederick W. Fleming is presiding over this class action. Judge Fleming has ordered that this case proceed as a class action, and the class certification order was not overturned on appeal.
4. WHY IS THERE A SETTLEMENT? The Court did not decide in favor of either Plaintiffs or Defendants. There was not a trial. Instead, both sides agreed to a settlement. That way, they avoid the cost of a trial, and the people affected will get compensation. The Class Representatives and their attorneys think the settlement is best for the Class Members. WHO IS IN THE SETTLEMENT To see if you will get money from this settlement, you first have to decide if you are a Class Member and then you must submit a valid claim form. 5. HOW DO I KNOW IF I AM PART OF THE SETTLEMENT? Judge Fleming decided that everyone who fits this description is within the Settlement Class: Each Person who, during the period from August 20, 1996, to October 19, 2007, meets the following criteria: a. who was insured under a personal lines automobile insurance policy providing uninsured motorist property damage coverage (UM) or underinsured motorist property damage coverage (UIM) for private passenger automobiles issued by Allstate Insurance Company, Allstate Indemnity Company, Allstate Property and Casualty Insurance Company, Allstate Fire and Casualty Insurance Company, Allstate New Jersey Insurance Company or Allstate New Jersey Property and Casualty Insurance Company in Delaware, Indiana, Louisiana, Maryland, Mississippi, New Jersey, New Mexico, North Carolina, Oregon, South Carolina, Tennessee, Vermont, Virginia, Washington, Washington, D.C., or West Virginia; b. who reported valid property damage claims for vehicle damage under their insurance policy’s UM or UIM property damage coverages, for a loss that occurred between August 20, 1996 and October 19, 2007 and that was reported on or before October 19, 2007; c. for whom the estimate, including supplements, to repair the vehicle, was more than $1000;
d. whose vehicle was 6 years old (model year plus five) or less at the time of loss; e. whose vehicle had less than 90,000 miles at the time of loss; and f. whose vehicle suffered structural (frame) damage and/or required body work.
However, claims that fit within any one of the following categories are NOT included in the Settlement: a. claims resulting in total losses; b. claims for damage to leased, non-owned, or temporary substitute vehicles; c. claims limited to (i) glass repair or replacement; (ii) tire replacement; (iii) sound systems repair or replacement, or (iv) any combination of (i) (ii) and (iii) only;
d. claims identified as closed without payment by Allstate; e. claims that were included on the class list in Sims v. Allstate Ins. Co., Case No. 99-L-393A (St. Clair County, Illinois) and for which the policyholder did not submit a valid and timely request for exclusion from that class; f. claims in which the policyholder was paid for diminished value in addition to the cost of repair;
g. claims involving vehicles that, prior to the accident at issue, had been involved in any other accident; and h. claims governed by automobile insurance policies that expressly limit liability under the UM/UIM property damage coverage to the amount necessary to repair and/or replace the damaged property or policies that otherwise exclude recovery for diminished value under the UM/UIM property damage coverage.
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THE SETTLEMENT BENEFITS - WHAT YOU GET 6. HOW MUCH WILL MY PAYMENT BE? Allstate has agreed to pay settlement claims for each Class Member who does not opt-out of the Settlement. Allstate has agreed to make available up to a maximum of $23,000,000 to pay valid settlement claims and attorneys’ fees and expenses. Each Class Member’s payment pursuant to this Settlement will depend on his or her portion of the total Settlement Class’s vehicle repair costs. Here’s how it works: a. Allstate will calculate the estimated total repair cost on each Class Member’s qualifying claim by calculating the sum of the payments made by Allstate under any property damage coverage for repairs plus the amount of the deductible for the applicable UM or UIM property damage coverage (the “Individual Class Member Repair Cost”). Allstate will perform this calculation for each Class Member who does not opt-out of the Settlement. b. The total sum of the Individual Class Member Repair Costs will be the “Total Repair Costs for All Class Members.” c. Each Class Member who submits a Valid Claim Form shall receive payment from Allstate, to be calculated as follows: ($23,000,000.00 - any attorneys’ fees and costs the Court awards to Class Counsel ) x (Individual Class Member Repair Cost ÷ Total Repair Costs for All Class Members). HOW YOU GET A PAYMENT - SUBMITTING A CLAIM FORM 7. HOW CAN I GET A PAYMENT? To qualify for payment, you must fit the description of a Settlement Class Member and send in a valid claim form. A claim form is attached to this Notice. Read the instructions carefully, fill out the form, sign it, and mail it postmarked no later than April 21, 2008. 8. WHEN WOULD I GET MY PAYMENT? The Court will hold a hearing on March 7, 2008, to decide whether to approve the settlement. If Judge Fleming approves the settlement, there may be appeals. It is always uncertain whether these appeals can be resolved, and resolving them can take time, perhaps more than a year. If that happens, please be patient. 9. 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 that you cannot sue, continue to sue, or be part of any other lawsuit against Allstate about the factual and legal issues in this case. It also means that all of the Court’s orders in this case will apply to you and legally bind you. If you sign the claim form, you will agree to release the legal claims that you give up if you get settlement benefits. EXCLUDING YOURSELF FROM THE SETTLEMENT If you do not want a payment from this settlement, but you want to keep the right to sue or continue to sue Allstate on your own about the same legal issues in this case, then you must take steps to get out. This is called “excluding yourself” — or is sometimes referred to as “opting out” of the settlement Class. 10. HOW DO I GET OUT OF THE SETTLEMENT? To exclude yourself from the settlement, you must send a letter by mail saying that you want to be excluded from Laughlin v. Allstate. Be sure to include your name, address, telephone number, automobile insurance policy number(s), claim number(s) and your signature. You must mail your exclusion request postmarked no later than February 22, 2008 to: Laughlin v. Allstate EXCLUSIONS c/o The Garden City Group, Inc. PO Box 9231 Dublin, OH 43017-4631 3
Failure to comply with any of these requirements may result in your written notice being declared invalid. If you ask to be excluded, you will not get any settlement payment, and you cannot object to the settlement. You will not be legally bound by anything that happens in this lawsuit. You may be able to sue (or continue to sue) Allstate in the future. 11. IF I DON’T EXCLUDE MYSELF, CAN I SUE ALLSTATE FOR THE SAME THING LATER? No. Unless you exclude yourself, you give up the right to sue Allstate for the claims that this settlement resolves. If you have a pending lawsuit against Allstate, speak to your lawyer in that case immediately. You must exclude yourself from this Class to continue your own lawsuit if it involves the same issues. Remember, the exclusion deadline is February 22, 2008. 12. IF I EXCLUDE MYSELF, CAN I GET MONEY FROM THIS SETTLEMENT? No. If you exclude yourself, do not send in a claim form to ask for any money. But, you may sue, continue to sue, or be part of a different lawsuit against Allstate on the same issues. THE LAWYERS REPRESENTING YOU 13. DO I HAVE A LAWYER IN THIS CASE? The Court asked the following attorneys and law firms, to represent you and other Class Members:
Stephen M. Hansen LOWENBERG, LOPEZ & HANSEN, P.S. 950 Pacific Ave., Ste. 450 Tacoma, WA 98402 Telephone: (253) 383-1963 Elizabeth J. Cabraser Morris A. Ratner Scott P. Nealey LIEFF, CABRASER, HEIMANN & BERNSTEIN, LLP 275 Battery Street, 30th Floor San Francisco, CA 94111-3339 Telephone: (415) 956-1000 / Fax: (415) 956-1008
Debra Hayes REICH & BINSTOCK, LLP 4265 San Felipe, Suite 1000 Houston, TX 77027 Telephone: (713) 622-7271 / Fax: (713) 623-8724 Terrell W. Oxford SUSMAN GODFREY, LLP Suite 5100, 901 Main Street Dallas, TX 75202-3775 Telephone: (214 ) 754-1900 / Fax: (214) 754-1933
These lawyers are called “Class Counsel.” You will not be charged for these lawyers’ fees. If you want to be represented by your own lawyer, you may hire one at your own expense. 14. HOW WILL THE LAWYERS BE PAID? Class counsel will ask the Court for attorneys’ fees and expenses up to $6,670,000. Allstate has agreed not to oppose a request for fees and expenses up to this amount. The Court may award less than these amounts. The amount of attorneys’ fees and expenses awarded by the Court will have the effect of reducing the amounts paid to Class Members under the Settlement.
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OBJECTING TO THE SETTLEMENT You can tell the Court if you do not agree with the settlement or some part of it. 15. HOW DO I TELL THE COURT THAT I DON’T LIKE THE SETTLEMENT? If you are a Class Member, you can object to the settlement if you don’t like any part of it. You can give reasons why you think the Court should not approve it. The Court will consider your views. To object, you must send a letter saying that you object to Laughlin v. Allstate. Be sure to include your name, address, telephone number, your signature, and the reasons you object to the settlement. Mail the objection to these three different places postmarked no later than February 22, 2008:
CLASS COUNSEL Debra Hayes REICH & BINSTOCK, LLP 4265 San Felipe, Suite 1000 Houston, TX 77027
DEFENSE COUNSEL Sonnenschein Nath & Rosenthal LLP Attn: Docket Dept. 7800 Sears Towers Chicago, IL 60606
COURT Clerk of the Court Pierce County Superior Court Department 7 930 Tacoma Avenue Tacoma, WA 98402
16. WHAT’S THE DIFFERENCE BETWEEN OBJECTING AND EXCLUDING? 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 do not want to be part of the Class. If you exclude yourself, you have no basis to object because the case no longer affects you. THE COURT’S FAIRNESS HEARING The Court will hold a hearing to decide whether to approve the settlement and Class Counsel’s request for an award of attorneys’ fees and expenses. You may attend and you may ask to speak, but you don’t have to. 17. WHEN AND WHERE WILL THE COURT DECIDE WHETHER TO APPROVE THE SETTLEMENT? The Court will hold a Fairness Hearing at 9:00 a.m. on March 7, 2008, at the Pierce County Superior Court (Department 7), 930 Tacoma Ave., Tacoma, WA 98402. At this hearing the Court will consider whether the settlement is fair, reasonable, and adequate to the Class and Class Counsel’s request for an award of attorneys’ fees and expenses. The Court will consider any objections made according to the procedures described above. Judge Fleming will also listen to anyone at the hearing who has followed the procedure described above. After the hearing, the Court will decide whether to approve the settlement and how much to award Class Counsel in attorneys’ fees and expenses. We do not know how long these decisions will take. 18. DO I HAVE TO COME TO THE HEARING? No. Class Counsel will answer questions Judge Fleming may have. But, you are welcome to come at your own expense. If you send an objection, you don’t have to come to Court to talk about it. As long as you mailed your written objection on time, the Court will consider it. You may also pay your own lawyer to attend, but it’s not necessary. 19. MAY I SPEAK AT THE HEARING? You may ask the Court for permission to speak at the Fairness Hearing. To do so, you must send a letter saying that it is your “Notice of Intention to Appear in Laughlin v. Allstate.” Be sure to include your name, address, telephone number, and your signature. Your Notice of Intention to Appear must be postmarked no later than February 22, 2008, and be sent to the Clerk of the Court, Class Counsel, and Defense Counsel, at the three addresses set forth above. You cannot speak at the hearing if you excluded yourself.
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IF YOU DO NOTHING 20. WHAT HAPPENS IF I DO NOTHING AT ALL? If you do nothing, you will get no money from this settlement. But, unless you exclude yourself, you won’t be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Allstate about the legal issues in this case ever again. GETTING MORE INFORMATION 21. ARE THERE MORE DETAILS ABOUT THE SETTLEMENT? This notice summarizes the proposed settlement. More details are in a Settlement Agreement. You can get a copy of the Settlement Agreement or more information by visiting the website at www.laughlinsettlement.com, where you will find answers to common questions about the settlement, a claim form, plus other information to help you determine whether you are a Class Member and whether you are eligible for a payment. PLEASE DO NOT CALL THE COURT, THE CLERK, OR ALLSTATE. DATED: January 17, 2008 The Honorable Frederick W. Fleming Superior Court Judge
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