Consumer Fraud Leads to $16 Million Judgment

Case Study Caption

About This Case

Homeowner's insurance company charged its customers with an illegal service fee.
Commercial LitigationConsumer Protection
Time Frame2 Years
LawyerJason Melancon

Louisiana insurance company illegally charged its customers service fee. MRD filed a class action lawsuit seeking reimbursement of the illegal service fees on behalf of approximately 67,000 Louisiana citizens.

 

 

MRD attorneys filed a class action lawsuit seeking recovery of illegal service fees charged by Louisiana based insurance company.

 

Challenge

Louisiana insurance company illegally charged its customers a service fee in violation of Louisiana statutory law. MRD filed a class action lawsuit seeking reimbursement. Due to the action of MRD, the Louisiana Commissioner of Insurance eventually intervened and ordered the reimbursement of fees to consumers.

 

  • Estate Planning
  • Business and Corporate Law
  • Contract Law
  • Real Estate Law

Our Process

1. Planned a Course of Action

After a client discovered the illegal service fee, MRD attorneys drafted and filed a class action lawsuit seeking reimbursement of the illegal fee for approximately 67,000 Louisiana citizens.

 

2. Court Approved Class Action

Because the insurance company charged all of its customers the same illegal amount, the court approved MRD’s motion for class certification.

 

3. Louisiana Insurance Commissioner Intervenes

The Louisiana Insurance Commission of Insurance intervened and ordered the insurance company to reimburse the illegal service fee.

 

4. Insurance Company Concedes Defeat

Given the actions of MRD and the Louisiana Commissioner of Insurance, the insurance company ultimately conceded defeat and its charging of illegal fees and service charges.

 

Result

The actions of MRD led to the reimburse of 67,000 consumers reimbursement of their illegal service fees, leading to a settlement and judgment against the insurance company exceeding $14 million.

 

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