January 24, 2011
On January 24, 2011, NP received final approval of a class action settlement valued at $794,000,000 against the Farmers’ group of insurance companies. In the case, NP alleged the Farmers companies failed to properly pay general contractors overhead and profit on structural loss claims where there were three or more trades involved. On behalf of the class, NP alleged that such payments are an industry standard that the Farmers group ceased paying in an effort to take money owed to policy holders to enhance its own bottom line.
The settlement provides a structured, tier-based system for class members to be compensated for Farmers’ failure to pay contractors’ overhead and profit, based on the size and date of the loss. The class consists of over 1.8 million Farmers’ insureds who made a structural loss claim during the relevant time period.
The contentious litigation took place over the course of six years. NP led the litigation through countless pleadings and numerous depositions, hearings and multiple mediation sessions with a nationally renowned mediator. Discovery in the case was substantial – the Farmers companies produced over 50 million pages of documents. NP successfully develop a system for review and proper synthesis of this massive amount of documents in context of both the substantive and class allegations.
In its Final Approval Order, the court noted NP had “vigorously pressed the interests of the class throughout the course of this litigation” and that NP had provided “excellent representation” to the class. Based on the size of the recovery for the class and the diligence and skill shown during the course of the litigation, the Court awarded $37,185,000 in attorney fees.
NP partner Michael Angelovich and associate Chad Ihrig led the litigation for NP.