BENTON – Belleville lawyers who proposed a class action against Progressive Casualty in St. Clair County circuit court saw it slip away in U.S. district court.
District Judge Staci Yandle dismissed it on Oct. 2., finding Progressive didn’t violate consumer law, insurance law, or contract law.
Lloyd A. Cueto, Lloyd M. Cueto, Christopher Cueto, James Radcliffe, and Steven Giacoletti filed the suit in St. Clair County in 2020.
They claimed Progressive insured plaintiff Sage Laures who sought coverage after an accident with a motorist who had little or no coverage.
They claimed Progressive denied coverage and Laures filed for arbitration.
They claimed Progressive offered $5,000 but didn’t tender payment.
They claimed Progressive similarly denied timely payment to hundreds and most likely thousands of motorists in ten years.
They sought $60,000 in civil penalties for each class member due to vexatious conduct under state insurance law.
Progressive removed the complaint to district court claiming the amount in controversy exceeded a $5 million limit on class actions in state courts.
Laures moved to remand the complaint to St. Clair County claiming damages wouldn’t exceed $5 million.
Yandle denied the motion and wrote, “Plaintiff’s allegation that damages do not exceed $5 million has no legal effect.”
She found that in addition to $60,000 penalties Progressive extrapolated that at least 1,000 class members would have at least $5,000 in damages.
She found Laures presented no countervailing evidence of the amount.
Progressive moved to dismiss the complaint and moved in June to stay the proceedings pending a ruling.
Yandle granted a stay and in four months she shut the action down.
“Neither the implied covenant of good faith and fair dealing nor the policy language obligated Progressive to pay Laures the amount of the unaccepted settlement offer in the absence of an executed release or arbitration award.”
She found it obvious that absent an obligation to make advance partial payments, she couldn’t find Progressive acted in bad faith.
Casie Collignon of Denver represented Progressive and Russell Scott of Belleville acted as local counsel.
Russell Scott of Belleville acted as local counsel.