GeicoAn Orlando federal magistrate granted summary judgment to five plaintiffs in a class action against an Geico and awarded damages to each class member.

Ashley Barrett, Micah Bellamy, Anthony Cook, Maurice Jones and Anthony Lorenti filed a breach of contract lawsuit on behalf of themselves and a proposed class against the Government Employees Insurance Co. and Geico General Insurance Co.

Each named plaintiff was insured by a GEICO Form A30-FL (03-11) policy when their vehicles were involved in an accident. Each plaintiff submitted claims to GEICO, and their vehicles were declared a total loss.

During the time period, GEICO had a uniform policy of not paying title fees or license plate transfer fees in Florida total loss claim settlements. Each of the claims against GEICO stemmed from total loss claims settled by GEICO that did not include compensation for title or license plate transfer fees.

The plaintiffs contended GEICO breached its contracts with them and the class by failing to pay title fees or license plate transfer fees as part of actual cash value payments after total losses.

The parties moved for summary judgment.

U.S. Magistrate Judge Leslie Hoffman granted summary judgment in favor of the plaintiffs, concluding  the policy required GEICO to pay title fees and license plate transfer fees as components of loss in the event of a total loss.

In its decision, the court explained the policy limited GEICO's loss liability to “actual cash value,” defined as “the replacement cost of the [insured vehicle] less depreciation or betterment.”

The court then ruled title transfer fees were a component of actual cash value, reasoning title transfer fees were costs an insured was “reasonably likely to incur” in replacing his or her vehicle.

The court next decided license plate transfer fees also were included in actual cash value, noting they had to be paid within 30 days of the purchase of a replacement vehicle and rejecting GEICO's argument that transfer fees were not part of replacement cost because the fees were incurred after purchasing a replacement vehicle.

The court concluded GEICO materially breached its contracts with the plaintiffs by failing to include these fees in total loss claim settlements. It awarded each of the named plaintiffs damages in the amount of $79.35 and ruled class members also were entitled to $79.35 each.

The case is Jones v. Government Employees Insurance, Nos: 6:17-cv-891-Orl-40LRH, 6:17-cv-1755-Orl-40LRH (M.D. Fla. July 19. Attorneys involved include: For plaintiffs (6:17cv891): Bradley W. Pratt, lead attorney, Pratt Clay, Atlanta; Christopher B. Hall, Hall & Lampros, Atlanta; Christopher J. Lynch, Christopher J. Lynch P.A., South Miami; Edmund A. Normand, Normand Law, Orlando; Tracy Lynne Markham, Avolio & Hanlon, St. Augustine; Jacob Lawrence Phillips, Normand, Orlando. For defendants  Alexander Fuchs and Kymberly Kochis, Eversheds Sutherland, New York; Amelia Toy Rudolph, Eversheds Sutherland, Atlanta; Susan Banks Harwood, Kaplan Zeena, Miami

Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. Meyerowitz is the Director of the Insurance Coverage Law Center and editor-in-chief of journals on insurance law, banking law, bankruptcy law, energy law, government contracting law, and privacy and cybersecurity law, among other subjects. Contact him at smeyerowitz@meyerowitzcommunications.com.