Konecky v. Allstate Fire & Cas. Ins. Co., et al.
Konecky v. Allstate
Case No. 17-CV-00010-DWM

Frequently Asked Questions

 

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  • The purpose of the Class Notice is to inform you that your rights may be affected by the Proposed Settlement of the above captioned lawsuit. The Class Notice is issued pursuant to Federal Rule of Civil Procedure 23 and by order of the United States District Court for the District of Montana.

  • The Class Notice describes the Proposed Settlement of a class action lawsuit concerning alleged violation of Montana law by defendants Allstate Fire & Casualty Insurance Company, Allstate Indemnity Company, Allstate Property and Casualty Insurance Company, and Allstate Insurance Company, individually and on behalf of all affiliated entities (collectively, “Allstate,” as defined in the Settlement Agreement).  The Named Plaintiffs were involved in an automobile accident while insured under an automobile policy issued by a Allstate entity. 

    The Named Plaintiffs allege their Allstate entity insurer subrogated from the at-fault driver before the Named Plaintiffs were made whole for their property damages or bodily injury damages.  The Named Plaintiffs alleges their Allstate entity insurer had no legal right to subrogation, and failed to conduct a reasonable investigation to determine whether the Named Plaintiffs were or would be made whole from payments received from the at-fault driver or their insurer.  The Named Plaintiffs allege, generally, that Allstate engaged in improper subrogation in Montana by subrogating before conducting a proper made whole analysis.

  • On September 28, 2018, the Court provisionally certified the following class for settlement purposes (included persons are “Settlement Class Members”): 

    All Persons (and their heirs, executors, administrators, successors and assigns), as of September 28, 2018, (a) who were insured under an auto insurance policy issued by Allstate in Montana; (b) with respect to whom Allstate recovered subrogation on a Montana automobile insurance claim after October 21, 2008.

    To be excluded from the Settlement Class, you must follow the “opt out” procedure described in Question 12.

  • The Settlement is a total recovery of $2,673,500, which amount includes the following allocations: $2,005,125 for subrogation recovered by Allstate and $668,375 for the class recovery of attorneys’ fees. Out of the total recovery of $2,673,500, the Court will determine an appropriate amount of deductions for attorney fees (not to exceed 25%), costs of litigation, class representative fees, and costs of class administration. The remaining amount will be the net settlement fund.

    Each Settlement Class Member shall automatically be entitled to receive a pro rata portion of the settlement fund net of fees and costs based on .30 of the amount Allstate subrogated as to that individual’s claim, as more fully described in Section VI of the Settlement Agreement. However, Settlement Class Members will have the option of submitting a claim if they believe they are entitled to more, and if such a claim is submitted, there will be a claim adjustment process pursuant to which the individual can receive either more or less than .30 of the amount Allstate subrogated as to that individual’s claim. In order to potentially qualify for payment as a member of the Settlement Class under the latter method, Settlement Class Members must submit a fully completed and signed Claim Form, found here, postmarked not later than March 30, 2019.

  • The amount of subrogation recovery the insurer received on your claim based on Allstate records can be found on the Notice you received. You may also contact the Settlement Administrator at: (833) 843-2641.

  • Settlement Class Members shall automatically receive a pro rata portion of the settlement fund net of fees and costs based on .30 of the amount Allstate subrogated as to that individual’s claim. However, Settlement Class Members will have the option of submitting a claim if they believe they are entitled to more, and if such a claim is submitted, there will be a claim adjustment process pursuant to which the individual can receive either more or less than .30 of the amount Allstate subrogated as to that individual’s claim. In order to potentially qualify for payment as a member of the Settlement Class under the latter method, Settlement Class Members must submit a fully completed and signed Claim Form, postmarked not later than March 30, 2019

    Payments for the Settlement benefit will be sent out no later than August 2019.

  • Without submitting a Claim Form, each Settlement Class Member shall automatically participate, pro rata in the net settlement fund in proportion to .30 of the amount shown above that Allstate subrogated as to that individual’s claim, as described in Section VI of the Settlement Agreement.

    However, if you believe you had uncompensated losses that exceed 30% of the subrogation amount, you may submit a claim demonstrating such losses, and, if such a Claim Form is therefore submitted by you, there will be a claim adjustment process pursuant to which your recovery participation will be based on either more or less than .30 of the amount Allstate subrogated as to your claim. In order to potentially qualify for payment as a member of the Settlement Class under the latter method, you must submit a fully completed and signed Claim Form. You may download a Claim Form on the Important Documents page of this website. 

    You must complete the Claim Form and mail it to the Settlement Administrator at the address listed below. In order to be eligible for consideration, the completed Claim Form must be postmarked not later than March 30, 2019. You must submit a separate Claim Form for each claim you have, if you have more than one claim.

    Konecky v. Allstate Class Administrator
    c/o JND Legal Administration
    P.O. Box 91350
    Seattle, WA 98111

  • If you wish to participate in the Settlement, you do not need to do anything, and you will participate based on .30 of the amount Allstate subrogated as to your claim.  If you believe you are entitled to more, you must submit a Claim Form as described in Question 7.

    You will not be charged anything individually to remain in the Settlement Class.  You may, if you wish, enter an appearance through your own counsel, although you must pay the fees and expenses incurred by that counsel.

    If you fit the Settlement Class description, you will be bound by any Final Judgment entered, including the Release of all the Released Claims, and will be permanently enjoined from prosecuting any of the Released Claims in this Action at any time in the future. 

  • For purposes of the Settlement, the Named Plaintiffs, Seth Konecky and Jennifer Konecky, and Flathead Valley Dist., Inc. have been designated by the Court as the Class Representatives. 

    The Class is represented by the following attorneys who are also known as "Class Counsel": 

     

    Allan M. McGarvey
    McGarvey, Heberling, Sullivan & Lacey, P.C.
    345 First Avenue East
    Kalispell, MT 59901
    (406) 752-5566
     

    Judah M. Gersh and Brian M. Joos
    Viscomi, Gersh, Simpson & Joos, PLLP
    121 Wisconsin Avenue
    Whitefish, MT 59937
    (406) 862-7800
     

    Alan J. Lerner
    Lerner Law Firm
    P.O. Box 1158
    Kalispell, MT 59903-1158
    (406) 756-9100
     

  • At the Final Settlement Hearing, Class Counsel sought Court approval for an attorneys’ fee award not to exceed 25% of the Settlement Fund amount of $2,673,500, which amount includes the following allocations: $2,005,125 for subrogation recovered by Allstate and $668,375, for the class recovery of attorneys’ fees, plus costs and litigation expenses, including administrative costs, as well as a class representative fee of $5,000 each to Seth and Jennifer Konecky for their prosecution of this Action.  All of the costs and expenses of the settlement, in addition to Class Counsel’s fees and the class representative fees, will be paid out of the Settlement Fund.

    Subject to Court approval, Class Counsel will request a Class Representative award to the Named Plaintiffs in the aggregate amount of $10,000 in recognition of the risk and effort undertaken in prosecuting this case to be paid by Class Counsel out of the Settlement Fund.

  • The deadline to opt-out of the Settlement Class passed on January 14, 2019.

  • Unless you excluded yourself from the Class in the manner set forth herein, you shall be deemed to have given Allstate’s counsel, and any of Allstate’s past, present or future officers, stockholders, attorneys, insurers, reinsurers, excess insurers, directors, agents, employees and/or independent contractors, and/or any other successors, assigns, divisions, or legal representatives thereof (the “Released Persons”) a General Release. 

    Under this General Release, you, your heirs, executors, administrators successors and assigns, and any and all other Persons claiming through or by virtue of you, shall release, waive, withdraw, retract and forever discharge any and all known and Unknown Claims, rights, demands, actions, claims, causes of action, allegations, or suits of whatever kind or nature, whether in contract, tort or in equity, debts, liens, liabilities, agreements, interest, costs, expenses, attorneys’ fees, losses or damages (whether actual, consequential, treble, statutory and/or punitive or exemplary or other) arising from or related to allegations regarding any purported improper subrogation activity whatsoever by Allstate, including, but not limited to:  negligence; contractual insurance coverage of any kind; statutory insurance bad faith; breach of contract; breach of the implied covenant of good faith; constructive fraud; conversion; civil conspiracy; aiding and abetting; unfair claim settlement practices, unfair trade practices; unfair insurance practices; conversion; premium overcharges; fraud; misrepresentation; deception; consumer fraud; interference with contract or business expectations; injunctive relief, declaratory judgment; unfair competition; unjust enrichment; deceptive practices; unfair business practices; breach of fiduciary duty; mental or emotional distress and/or common law bad faith, relating in any way whatsoever to Allstate’s subrogation practices in Montana, and/or which were brought or could have been brought in the Action. “Unknown Claims” means any claims arising out of facts found hereafter to be other than or different from the facts now believed to be true, relating to any matter covered by the Settlement, as to any of the Released Claims, as specifically defined above, so that each Settlement Class Member shall be deemed to have expressly waived any and all Unknown Claims relating to any matter covered by the Settlement to the full extent permitted by law, and to the full extent of claim preclusion and res judicata protections.

  • The deadline to object to the Settlement passed on January 14, 2019. 

  • The Court held a Final Settlement Hearing on February 13, 2019 at 1:30 P.M. MST, in the Courtroom of the Honorable Donald W. Molloy, 201 East Broadway, Missoula MT 59802.  At the Final Settlement Hearing, the Court considered whether the proposed Settlement should be granted final approval as fair, adequate, and reasonable and in the best interests of the Class as a whole.  The Court also considered the request of Class Counsel for an award of attorneys’ fees and the proposed payment to the Class Representative. 

    If you decided to opt out of the Class, you were not entitled to comment on the proposed Settlement or be heard at the Final Settlement Hearing.

  • The deadline to request to speak at the Final Settlement Hearing passed on January 14, 2019.

  • The Named Plaintiffs and Class Counsel support the Settlement because it provides for prompt, efficient, and fair relief.  In ultimately deciding to recommend this Settlement, Class Counsel considered the relative risks and benefits to the Settlement Class of settlement or continuing litigation.  Settlement Class Members incur no risk or cost in obtaining the relief provided for by the Settlement.

    While Allstate has agreed to the terms of this Settlement, Allstate has denied and continues to deny liability on each and every claim asserted by the Named Plaintiffs.  More specifically, Allstate has denied and continues to deny all charges of wrongdoing or liability, on any theory, arising out of any conduct, statements, acts or omissions of Allstate or its employees, agents or representatives, in connection with the Action.  Allstate has also denied and continues to deny any assertion that the Named Plaintiffs or Settlement Class Members suffered any damages that were proximately caused by any act or omission of Allstate or its employees, agents or representatives, or that a class action would otherwise be proper in this Action.

  • The Notice is only a summary of the circumstances surrounding the Action, the claims asserted, the proposed Settlement, and related matters. Copies of the court orders and Stipulation of Settlement are available on the Important Documents page of this website.  You may seek the advice and guidance of your own private attorney, at your own expense, if you desire, and you may call counsel for the class listed in Question 9.

    For more detailed information, you may review the pleadings, records, and other papers on file in this Action, which may be inspected during regular business hours at the Clerk’s Office at the address below:

    Clerk of the Court
    United States District Court for the District of Montana
    201 E. Broadway
    Missoula, MT 59802

    Copies of the Settlement Agreement are available from Class Counsel upon written request.  If you wish to communicate with Class Counsel, you may do so by writing to Class Counsel, or phoning Class Counsel, at the addresses and those numbers listed in Question 9.

For More Information

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Mail

Konecky v. Allstate Class Administrator
c/o JND Legal Administration
P.O. Box 91350
Seattle, WA 98111