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Class action suit yields $11.7M judgment

A CLASS action suit filed against Safe Auto Insurance Co. and Safe Auto Insurance Group Inc. has resulted in a judgment of more than $11.7 million for the plaintiffs, John Lucio, et.al., in Monroe County Common Pleas Court.

The judgment for $11,727,970.58 was returned recently in the case heard by Judge Julie R. Selmon. Both the plaintiffs and defendants had filed motions for summary judgments on damages.

“Basically, it’s a breach of contract case,” said John Yocca, court reporter.

Approximately 180 individuals are the plaintiffs, and the action was filed March 22, 2007. In their complaint, they asserted claims “on behalf of themselves, and a putative class of sales representatives employed by Safe Auto since 2000, seeking to recover commissions and bonuses allegedly owned to them on two theories: (1) breach of contract, and (2) unjust enrichment.”

The plaintiffs alleged that their commissions and bonuses and “those of the putative class members were wrongfully reduced when Defendants restructured their Sales Compensation Program in January 2004 and August 2005. Plaintiffs also alleged that Safe Auto wrongfully retained renewal commissions on insurance policies sold by formerly-employed sales representatives.”

Involved as plaintiffs were former employees and employees serving as sales representatives by Safe Auto Insurance Co./Group in the company’s Monroe County or Franklin County call centers.

The court denied the defendants’ motion for a summary judgment on damages and granted the plaintiffs’ motion for such a judgment.

According to the court entry, judgment is granted in favor of the plaintiffs and against the defendants:

  • in the amount of $7,858,958.11 for renewal commission damages consistent with the courts’ March 12, 2010, and June 24, 2010 orders.
  • in the amount of $290,696.15 for new commission damages consistent with the courts’ March 12, 2010, and June 24, 2010 orders.
  • in the amount of $4,006,950.28 for unjust enrichment damages consistent with the courts’ March 12, 2010, and June 24, 2010 orders.

It was noted that an offset of $428,633.96 to the total damages amount of $12,156,604.54 “should be given Defendants to reflect the ‘overpayment’ made to the Columbus sales representatives as previously outlined (in the case), making the total damages amount in favor of Plaintiffs and against Defendants $11,727,970.58.”

Motions had been filed previously for prejudgment interest, and a hearing was held with the matter taken under advisement.

The plaintiffs wanted additional interest on the judgment total exceeding $11 million, and the court has granted them 14 days from Jan. 14, the date of the filing of the entry, to file a brief regarding prejudgment interest. The defendants were granted 14 days from the date of the filing of the plaintiffs’ brief to respond.

Pokas can be reached at timesleader@timesleaderonline.com.

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