Auto Insurance Total Loss Class Action: Ninth Circuit Affirms Denial of Class Certification
Tuesday, February 15th, 2022 Auto LitigationNumerous class action suits have been filed against auto insurers regarding the valuation of vehicles that are total losses. These cases typically allege that insurers are undervaluing vehicles in some common way or in violation of a state regulation.
The Ninth Circuit recently affirmed the denial of class certification in a published decision that I expect will be helpful to insurers defending these cases and others involving different lines of insurance but similar issues.
In Lara v. First National Insurance Company of America, No. 21-35126, — F.4th ‑, 2022 WL 414691 (9th Cir. Feb. 11, 2022), the plaintiffs sued Liberty Mutual companies and CCC Intelligent Solutions, a vendor that assists insurers in valuing vehicles, alleging breach of contract as to Liberty Mutual and an unfair trade practices claim against all defendants.
The insurance policy required payment of the ‘actual cash value’ of the vehicle, which was defined by a Washington regulation as ‘fair market value.’
CCC researches the prices at which used vehicles sell at car dealers, and then makes adjustment based on the pre-loss condition of the insured vehicle and the difference between prices paid for vehicles purchased from private parties rather than dealerships. The insurance adjuster then in some cases adjusts the value shown on the CCC report.
