Nationwide Overhead and Profit Litigation

On July 27, 2009, NP gained final approval of a national class action settlement against the Nationwide family of insurance companies. In 2004, NP and its co-counsel brought suit on behalf of a proposed national class against Nationwide based on its alleged improper claims handling practices regarding structural loss claims. Specifically, NP alleged on behalf of the class that Nationwide did not consistently pay general contractor’s overhead and profit when three or more construction trades were involved in the estimated structural loss claim. NP alleged it was industry custom to make such payments when three or more trades were estimated to be involved in the repairs and that Nationwide ceased making these payments owed to insureds to increase its own profitability.

After five years of intense litigation led by NP, a proposed settlement was reached. Class size was determined to be almost two million members. Based on the settlement approved by the court, class members submitting approved claims will receive reimbursement in the total amount of the alleged underpayment – 20% of the value of the structural loss claim, subject to certain discreet limitations. Based on the size of the fund made available to class members and the high-quality representation the class received, the court awarded attorney fees of $32,000,000. NP is extremely proud of the result achieved on behalf of the class.

NP partners Cary Patterson and Michael Angelovich and associate Chad Ihrig led the litigation for NP.