On March 7, 2016, Plaintiffs Robin McNeil and Leslie Lewis filed the instant putative nationwide class action complaint. On October 5, 2015, Plaintiffs Elijah and Brenda Lowe filed a similar putative nationwide class action involving lender-placed insurance, captioned Lowe v. LoanCare, LLC et al.; Case No. 1:15-cv-23700-KMM (the “Lowe Litigation”), in the United States District Court for the Southern District of Florida. On November 25, 2015, Plaintiff James filed a
similar putative nationwide class action involving lender-placed insurance, captioned James v. LoanCare, LLC et al., Case No. 16-cv-20941- KMM, in the United States District Court for the Eastern District of Virginia (the “James Litigation”) (together the “Related Litigations”).
The James Litigation was subsequently transferred to the Southern District of Florida on March 15, 2016. On March 23, 2016, a Consolidated Amended Complaint was filed in the McNeil Litigation, which added the claims of Kimberley James, Elijah Lowe, and Brenda Lowe.
In the McNeil Litigation, Plaintiffs asserted claims for breach of contract, breachof the implied covenant of good faith and fair dealing, unjust enrichment, breach of fiduciary duty, violations of the tortious interference with a business relationship, and violations of the Truth in Lending Act and the Racketeer Influenced and Corrupt Organizations Act.
Motions to Dismiss in the Lowe Litigation were filed and fully briefed in early 2016. Based upon the arguments raised in these motions, the allegations of the Consolidated Amended Complaint,
recent rulings of the Court, and the vast discovery already produced in the other LPI actions by the Assurant Defendants, the parties agreed to engage in mediation.
Plaintiffs demanded specific and targeted discovery to be produced by the Defendants prior to any mediation.
On March 31, 2016, a mediation of this matter with Rodney Max as the mediator (“McNeil Mediation”) was held. In advance of and during the mediation, the Defendants provided Plaintiffs and Class Counsel with additional information concerning LoanCare’s specific LPI program, including aggregate LPI premium information across the country for all programs.
The Parties made significant progress during mediation and held further mediation sessions and discussions over the following weeks. Ultimately, a settlement in principle was reached and the Settling Parties’ counsel signed off on a settlement outline that identified the material terms for this Settlement Agreement.
Who’s Eligible
Class Members of the LoanCare force-placed insurance settlement include “all borrowers in the United States who, within the Class Period (as defined below) were charged by LoanCare under a hazard, flood, flood-gap or wind-only LPI Policy for Residential Property, and who, within the Class Period, either (i) paid to LoanCare some or all of the Net Premium for that LPI Policy or (ii) did not pay to and still owe LoanCare the Net Premium for that LPI Policy.”
The Class Period is Jan. 1, 2009 through Oct. 19, 2016.
Potential Award
Varies. The defendants have agreed to pay a cash award or credit in the following amounts:
- A sum equal to 5 percent of the Net Premium if you were charged by LoanCare for a flood or wind force-placed insurance policy during the Class Period
- A sum equal to 5 percent of the Net Premium if you were charged by LoanCare for a hazard force-placed insurance policy on or after June 1, 2013
- A sum equal to 8 percent of the Net Premium if you were charged by LoanCare for a hazard force-placed insurance policy on or before May 31, 2013
Proof of Purchase
N/A
Claim Form Deadline
The settlement website indicates that the Claim Form deadline will be no earlier than June 16, 2017.
Case Name
McNeil v. LoanCare LLC, Case No. 1:16-cv-20830-KMW, in the U.S. District Court for the Southern District of Florida
Final Hearing
3/16/2017
Settlement Website
Claims Administrator
McNeil Settlement Center
c/o Rust Consulting
P.O. Box 2563
Faribault, MN 55021-9563
1-877-865-5287
Class Counsel
Adam M. Moskowitz
KOZYAK TROPIN & THROCKMORTON PA
Aaron S. Podhurst
PODHURST ORSECK PA
Lance A. Harke
HARKE CLASBY & BUSHMAN LLP
Defense Counsel
Counsel for LoanCare:
Robert M. Brochin
Brian M. Ercole
MORGAN LEWIS & BOCKIUS LLP
Counsel for Assurant Defendants:
Frank G. Burt
CARLTON FIELDS JORDEN BURT PA
