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Marcelletti v. GEICO Gen. Ins. Co.

Policy Can Be Interpreted as Including Sales Tax on Totaled Leased Cars' Actual Cash Value

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DECISION AND ORDER INTRODUCTION Plaintiff John Marcelletti (“Plaintiff”) brings this putative class action against defendant GEICO General Insurance Company (“GEICO” or “Defendant”), asserting a claim for breach of contract based on Defendant’s failure to pay sales tax for total loss vehicles that are leased. (Dkt. 1). Presently before the Court is Defendant’s motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6). (Dkt. 12). For the reasons that follow, the Court denies Defendant’s motion. FACTUAL BACKGROUND The following facts are taken from Plaintiff’s complaint. As required at this stage of the proceedings, Plaintiff’s factual allegations are treated as true. Plaintiff resides in New York and was a named insured under an automobile policy issued by GEICO. (Dkt. 1 at

1, 12). GEICO uses its standard form policy in New York, which contains language regarding comprehensive and collision coverage for vehicles that are deemed to be a total loss. (Id. at 14). Under the policy, GEICO may choose to pay the actual cash value (“ACV”) to the insured when the cost to repair or replace the vehicle is more than the vehicle’s value. (Id. at 15). ACV is defined in the policy as “the replacement cost of the auto or property less depreciation or betterment.” (Id. at 4; Dkt. at 10; see also Dkt. 1-1 at 12) (emphases omitted). Plaintiff insured a leased vehicle under a policy through GEICO. (Dkt. 1 at

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