LOS ANGELES, CA – Last week, Tycko & Zavareei and co-counsel’s motion for class certification was approved in a breach of contract case against auto insurer United Services Automobile Association and USAA Casualty Insurance Company (USAA).
Our firm represents consumers with leased vehicles who had auto insurance policies with USAA. Although USAA’s policy language makes no distinction between owned and leased vehicles, when a leased vehicle was totaled (prior to September 12, 2020), USAA did not pay the full amount in taxes and title fees a policyholder would have to pay on a comparable replacement vehicle. By contrast, it paid the full amount of tax and fees when an owned vehicle was totaled. Allegations against the insurer hold that this practice violates USAA’s insurance policy.
Judge Terry J. Hatter, Jr. certified a class of policyholders with leased vehicles who had policies with USAA and were denied full taxes and fees.
“We are pleased that the Court is allowing the case to move forward on behalf of Class Members who were not paid the full Actual Cash Value that they were owed when their covered leased vehicle was determined to be a total loss,” said Partner Annick M. Persinger, lead counsel for Mr. Spielman. “We look forward to moving the case to a judgment in favor of these Class Members who are still owed thousands of dollars in sales tax and fees.”
The case is Lester I. Spielman, etc. v. United Services Automobile Association, et al., Case No. CV 19-01359 TJH (MAAx) in the United States District Court, Central District of California, Western Division.