Armettia Peach's class action lawsuit against CIM Insurance of Southfield, Mich. will be in court before Madison County Circuit Judge Nicholas Byron June 29 on a defense motion to dismiss.
CIM, represented by Stephen Mudge of Reed, Armstrong, Gorman, Mudge and Morrissey of Edwardsville, is accused of violating the Illinois Consumer Fraud Act.
Peach filed the suit in September 2002, over its sale of extended protection plans. The six-count suit seeks up to $75,000 per count, per class member.
Armettia Peach is the mother of Ashley Peach, who has filed three class action lawsuits in Madison County against retailers.
The hearing was originally scheduled on April 15, but it was reset for May 27. But Peach’s attorney, Daniel Cohen of the Lakin Law Firm, had asked it be rescheduled on both occasions.
Peach alleges the insurance company misrepresented that it would receive the full amount paid for an “Extended Protection Plan,” (EPP) when in fact Enterprise Car Sales in Glen Carbon--where she purchased a vehicle--kept some of the money. Enterprise acted as an agent for CIM.
She claims that the protection plan contract was "inherently deceptive" because it falsely leads consumers to believe EPPs are "pass through" charges paid to CIM.
"Listing the cost of the EPP in conjunction with other non-negotiable items (such as licenses and taxes) suggests that charges for EPPs are similar in nature and thus non-negotiable pass through charges," the complaint states.