NOTICE OF PROPOSED CLASS ACTION SETTLEMENT AND HEARING

Transcription

1 NOTICE OF PROPOSED CLASS ACTION SETTLEMENT AND HEARING This Notice summarizes your rights under the proposed settlement of a class action lawsuit as described below. You are eligible to receive a portion of the monies withheld from your first party residential property insurance claim payment by Century-National Insurance Company. A court authorized this notice. This is not a solicitation from a lawyer. Insured: Policy No.: Claim No.: Recovery from Lawsuit if the Settlement is Approved: [Data] [Data] [Data] $[Data] If this settlement is approved by the court on September 30, 2014, a final order is entered that date, and you remain in the class, approximately 90 days later a check will be mailed to you in the amount above via certified mail, return receipt requested. You must sign the receipt to receive the check. THIS NOTICE COULD AFFECT YOUR RIGHTS PLEASE READ IT CAREFULLY This Notice is provided to you by order of the Los Angeles Superior Court. This document summarizes a proposed settlement of a class action lawsuit entitled Michael LeBarre and Martha LeBarre, individuals, on behalf of themselves and on behalf of all others similarly situated v. Century-National Insurance Company, Los Angeles Superior Court Case No. BC (the LeBarre Lawsuit ). In the LeBarre Lawsuit, Michael LeBarre and Martha LeBarre ( Plaintiffs ) allege that Century-National s practice of withholding Overhead and Profit from the Actual Cash Value claims payments made in certain first party residential property insurance claims improperly reduced the benefits paid to the Settlement Class. Century-National ( Defendant ) vigorously denies the allegations in the lawsuit and denies all allegations of wrongdoing and liability. In the LeBarre Lawsuit, certain terms are specifically defined, including the following: Overhead and Profit refers to 10% of the Replacement Cost Value for contractor overhead and an additional 10% of the Replacement Cost Value for contractor profit where the services of a general contractor are necessary to repair damage to insured property. Notice of Class Action Settlement -1-

2 Replacement Cost means the total of all costs reasonably estimated to be incurred to complete repairs to property damage, and includes Overhead and Profit. However, Replacement Cost is defined in the Century-National policies with Replacement Cost Coverage as Replacement cost means the cost to replace or repair the building or any part of it using material and workmanship of like kind and quality as may be reasonably available to the building trades. Actual Cash Value as defined in the Century-National policy means fair market value of the property at the time of loss. Who is in the Settlement Class? You are in the Settlement Class if: (1) You were insured by a first party residential property insurance policy (homeowners policies, dwelling fire policies and mobile home policies) issued in California by Century-National which covers property located in the State of California; (2) Made a claim for policy benefits to Century-National and your claim was open as of February 12, 2008 or opened after February 12, 2008; (3) Century-National agreed that more than $7, was owed on the claim and the services of a general contractor were necessary to make repairs; (4) You received an Actual Cash Value claims payment from Century- National which did not include the payment of Overhead and Profit; and (5) You have not been paid Overhead and Profit as of September 20, What are the terms of the proposed settlement? The complete terms of the proposed settlement are set forth in a formal Class Action Settlement Agreement (the Agreement ) which is on file with the Court and is also available at This Notice is only a summary of the settlement, and in case of any conflict or inconsistency between this Notice and the Agreement, the terms of the Agreement will control. The settlement, if approved, would resolve all of the claims alleged in the LeBarre Lawsuit. Summary of the Benefits to the Settlement Class Within thirty (30) days of the expiration of the deadline for all appeals or challenges to the Settlement, Century-National shall initiate delivery of checks to each member of the Settlement Class in an amount equal to sixty-seven percent (67%) of the Overhead and Profit monies withheld from the Settlement Class members qualifying claims payments. The total amount of Overhead and Profit Notice of Class Action Settlement -2-

3 monies withheld and at issue in this lawsuit is $2,783, This sum was withheld on a total of 1,394 claims, though the amount of money withheld on each claim varies considerably. Additionally, Century-National has agreed to stop, as of July 15, 2013, the withholding of Overhead and Profit from Actual Cash Value claims payments in connection with claims for damage to buildings and other structures made under first party residential property insurance policies issued in the State of California. Attorneys Fees and Costs Award and an Incentive Award Counsel for Plaintiffs and the Settlement Class will ask the Court to award them an amount equaling up to twenty-five percent (25%) of the aggregated Overhead and Profit monies withheld from the Settlement Class as payment for investigating the facts, litigating the case, and negotiating the settlement. Sixtyseven percent (67%) of the aggregated Overhead and Profit monies withheld is $1,864,886.56, so the maximum attorneys fees and costs sought shall be $466, Class Counsel have agreed to divide any attorney s fee and cost award as follows: (a) first the Rosen Law Firm and Parisi & Havens LLP will deduct from the award their costs incurred in litigating this action, which costs currently total less than $15,000.00; (b) then from the remainder the Rosen Law Firm shall be entitled to thirty percent of the attorney s fee award and Parisi & Havens LLP shall be entitled to seventy percent of the attorney s fee award. The Named Plaintiffs, Michael LeBarre and Martha LeBarre, will request a total incentive award of $5,000 as compensation for the time and effort undertaken in and risks of pursuing this litigation. The Court will determine the appropriate amount of the awards to be paid. The Settlement is not conditioned upon approval of the attorneys fees and costs award or the incentive award amounts. The payment of any attorneys fees and costs and payment of an incentive award will not reduce the payment to the Settlement Class. Class Counsel will file a motion for an award of attorneys fees and costs no later than August 1, A copy of the motion and any supporting documents can be obtained from once the document is filed. What Happens Next? The Court will hold a Final Approval Hearing on September 30, 2014, at 10:00 a.m. in Los Angeles at the Los Angeles Superior Court, Department 323, 600 South Commonwealth Avenue, Los Angeles, California to hear any objections, to consider whether to give final approval to the settlement, and to consider the claim for attorneys fees and costs and the incentive award to the Named Plaintiffs. The Court will only hear objections at the hearing from those Notice of Class Action Settlement -3-

4 who timely object to the settlement (see below). You may participate in the Final Approval Hearing with or without an attorney, but if you choose to be represented by an attorney you must do so at your own expense. YOU DO NOT HAVE TO APPEAR AT THE HEARING TO RECEIVE THE BENEFITS OF THE SETTLEMENT. What Are Your Options? Participate in the Settlement. If you wish to remain a part of the Settlement Class, you are automatically entitled to a money award equal to sixtyseven percent (67%) of the Overhead and Profit withheld by Century-National from your qualifying property insurance claim payment. You do not have to do anything to obtain payment. If you remain in the settlement and the settlement is approved, a check will be mailed to you in the amount at the top of this notice via certified mail, return receipt requested. You must sign the receipt to receive the check. Opt Out of the Settlement. You may exclude yourself from the settlement. If you choose to exclude yourself, or opt out, you must send a written statement to Class Counsel that includes: (1) your full name, address and telephone number; (2) a sentence certifying that you are a Settlement Class Member; and (3) the following statement: I request to be excluded from the class settlement in LeBarre v. Century-National Insurance Company, Los Angeles Superior Court Case No. BC You must personally sign your written opt-out statement and mail it postmarked by August 29, 2014 to the following address: David C. Parisi, Esq. Parisi & Havens LLP 212 Marine Street, Unit 100 Santa Monica, California Phone: (818) Fax: (818) dcparisi@parisihavens.com If you do not timely opt out, you will be bound by this settlement. Object to the Settlement. You may remain a Settlement Class Member, but object to the terms of the settlement. You may object to all or any portion of the settlement at the Final Approval Hearing, but you must first explain your objections in writing. All objections must include: (1) your name, address and telephone number; (2) a sentence certifying that you are a member of the Notice of Class Action Settlement -4-

5 Settlement Class; (3) the factual basis and legal grounds for your objection; (4) whether you intend to speak at the Final Approval Hearing, (5) the identity of any witnesses whom you may call to testify at the Final Approval Hearing; and (6) copies of any exhibits you intend to offer into evidence at the Final Approval Hearing. To be considered, objections must be mailed, postmarked by August 29, 2014, to the following address: David C. Parisi, Esq. Parisi & Havens LLP 212 Marine Street, Unit 100 Santa Monica, California Phone: (818) Fax: (818) You have the right to consult with your own attorney, at your own expense, before deciding how best to proceed. What claims will be released by this Settlement? If the settlement receives final approval from the Court, the settlement will be legally binding on all Settlement Class Members, including Settlement Class Members who object. If you, or someone acting on your behalf, are currently litigating claims against Century-National, you will be barred from pursuing all claims released by the settlement unless you validly opt out as described above. The full terms of the release, which will bind all Settlement Class Members as to certain claims against Century-National, are set forth in the Agreement which is on file with the Court and available online at In summary, you will release all Claims that were alleged (or that could have been alleged based on the same or similar facts and circumstances) in the LeBarre Lawsuit. IN SUMMARY, YOU WILL NOT BE PERMITTED TO FILE OR CONTINUE ANY LAWSUIT CHALLENGING CENTURY-NATIONAL S FAILURE TO PAY CONTRACTOR S OVERHEAD AND PROFIT AS PART OF THE ACTUAL CASH VALUE CLAIMS PAYMENT ON A FIRST PARTY RESIDENTIAL PROPERTY INSURANCE CLAIM WHICH WAS OPEN AS OF FEBRUARY 12, More Information Is Available This Notice is only a summary of the Settlement Agreement. If you have questions regarding the settlement, or would like to review a copy of the Settlement Agreement, please visit You may also review the Court s file during regular court hours at: Notice of Class Action Settlement -5-

6 Los Angeles Superior Court Central Civil West Clerk s Office, Room South Commonwealth Avenue, Los Angeles, California PLEASE DO NOT TELEPHONE THE COURT, THE JUDGE, OR THE CLERK OF THE COURT. Dated:, 2014 By Order of the Los Angeles Superior Court. Notice of Class Action Settlement -6-