Arevalo v. USAA

The Notice is being sent to inform you that you might be a class member in a class action against United Services Automobile Association (“United Services”), USAA Casualty Insurance Company (“USAA CIC”), USAA General Indemnity Company (“USAA GIC”) and Garrison Property & Casualty Insurance Company (“Garrison”) (collectively “USAA”) in a case regarding USAA’s payment of claims for Total Loss vehicles. USAA denies all liability and the Parties have agreed to settle the case.

The persons who sued are called the “Plaintiffs,” and the companies they sued are called “Defendants.” The Plaintiffs in this case are VIVIAN AREVALO and MICAH SIMON. The Defendants are USAA Casualty Insurance Company (“USAA CIC”), Garrison Property & Casualty Insurance Company (“Garrison”), United Services Automobile Association (“United Services”), and USAA General Indemnity Company (“USAA GIC”) (collectively, “USAA” or “Defendants”).

Plaintiffs alleged that United Services Automobile Association (“United Services”), USAA Casualty Insurance Company (“USAA CIC”), USAA General Indemnity Company (“USAA GIC”), and Garrison Property & Casualty Insurance Company (“Garrison”) (collectively, “USAA” or “Defendants”) breached their contracts (Automobile Insurance Policies) by failing to pay or underpaying Fees to Settlement Class Members, failing to properly calculate the CRA payment amount for Settlement Class Members who had CRA coverage, and, for some Settlement Class Members, failing to pay (or underpaying) Sales Tax to them. Settlement Class Members are Texas insureds who submitted physical damage claims (collision and comprehensive claims) for their insured vehicles which resulted in Total Loss Claim payments for the “actual cash values” of their Total Loss Vehicles during the Class Period. Plaintiffs claim that Defendants’ failure to pay (or underpayment of) Fees and failure to pay (or underpayment of) Sales Tax and CRA Sales Tax constituted a breach of their insurance contracts. Defendants maintain that they complied with the terms of the Automobile Insurance Policies and applicable law and deny that they acted wrongfully or unlawfully and continue to deny all material allegations.

In a class action lawsuit, one or more people, called “Class Representatives,” sue on behalf of people who have similar claims. All these people together are a “Class” or “Class Members.” One court resolves the issues for all Class Members, except for those who choose to exclude themselves from the Class.

Plaintiffs and Defendants do not agree about the validity of the claims made in this litigation. The litigation has not gone to trial, and the Court has not decided in favor of Plaintiffs or Defendants. Instead, Plaintiffs and Defendants have agreed to settle the litigation. Plaintiffs and the attorneys for the Settlement Class ("Class Counsel") believe the Settlement is fair, reasonable and adequate to the Settlement Class because the Settlement Benefits compare favorably to the best results the Settlement Class could obtain through continued litigation given the risks and uncertainty associated with continued litigation and the nature of the defenses raised by Defendants which could result in the Settlement Class receiving less benefits than the Settlement Benefits or recovering nothing at all.

You may be a member of the Settlement Class if you were insured under any Texas private passenger automobile insurance policy issued by one of the Defendants and submitted a Covered Total Loss Claim and were paid on that claim during one of the following periods:

1. Sales Tax and CRA Sales Tax:
   1. United Services, USAA CIC, USAA GIC, Garrison: September 30, 2018, through May 30, 2023
2. Fees:
   1. USAA CIC and Garrison: August 25, 2016, through May 30, 2023
   2. USAA and USAA GIC: September 30, 2018, through May 30, 2023

You have been identified as a potential “Settlement Class Member” from USAA’s claims data because you were a Texas resident and insured by USAA and submitted a physical damage claim with respect to a covered vehicle that resulted in a Total Loss claim payment on or after August 25, 2016.

If you are still not sure whether you are included, you can call the Settlement Administrator toll free at 1-877-629-9695 or send an email to info@TexasTotalLossClassActionSettlement.com.

As a part of the Settlement, Defendants have, upon Court approval, agreed to pay up to $13,597,625.00 in Cash Settlement Benefits to be paid as follows:

1. Pay $62.50 in Fees to each Settlement Class Member who timely submits a valid Claim Form;
2. Pay Sales Tax calculated as 6.25% of the adjusted value of the Total Loss Vehicle less the amount (if any) of Sales Tax included in the original Total Loss Claim Payment to Settlement Class Members who timely submit a valid Claim Form and who Defendants did not pay (or underpaid) Sales Tax in the original Total Loss Claim Payment.
3. Pay Settlement Class Members who timely submit a valid Claim Form and who had optional CRA coverage at the time of the loss an additional 20% of the Sales Tax amount less the amount (if any) of CRA Sales Tax included in the original Total Loss Claim Payment (“CRA Sales Tax”); and
4. Pay Class Counsel Fees and Costs not to exceed $4,079,287.50, and Service Awards not to exceed $5,000 to each Class Representative. Each Settlement Class Member Payment will be reduced by each Class Member’s proportional share of the Class Counsel Fees and Costs and the Class Representative Service Awards.

In exchange, Plaintiffs and the Settlement Class Members who do not exclude themselves from the Settlement agree to give up any claim they have for payment of Sales Tax; CRA Sales Tax; and/or Title Fees, Transfer Fees, Regulatory Fees, Inspection Fees, Dealer Fees, and/or any other Fees. If you are a member of the Settlement Class, you can submit a Claim Form to be eligible to be paid as described above. Alternatively, you may, if you wish, request to be excluded from the Settlement, which means you are not eligible for payment, you may not object to the Settlement, and you maintain your right to sue USAA individually and separately for Sales Tax; CRA Sales Tax; and/or Title Fees, Regulatory Fees, Transfer Fees, Inspection Fees, Dealer Fees and/or other Fees. You may also object to the Settlement terms or to Class Counsel’s requested Fees and Costs or to the Class Representative Service Awards if you fully comply with the requirements for doing so.

Claim Forms are no longer accepted as the deadline was December 15, 2023.

Award payments for valid claim submissions were made March 6, 2024. If you submitted a timely and valid claim and you do not receive your award payment by March 22, 2024, please contact the Settlement Administrator at info@TexasTotalLossClassActionSettlement.com

To receive a payment, you had to timely complete and mail a Claim Form to the Settlement Administrator or submit a Claim Form online here. You needed one of the following to submit your claim: the unique claim number found on the Notices, the Automobile Insurance Policy number for the applicable policy on the Total Loss Date, the claim number associated with the Total Loss, or the vehicle identification number (VIN) of the Total Loss Vehicle. You had to submit at least one of these numbers, along with your name and address, or your claim would have been rejected. Claim Forms had to be postmarked or submitted online by December 15, 2023. Claim Forms are no longer accepted.

Unless you excluded yourself from the Settlement, you are staying in the Class, and that means that you can’t sue or be part of any other lawsuit against the USAA companies about the legal issues in this case. It also means that all of the Court’s orders will apply to you and legally bind you.

If you stay in the Class, you will agree to “release and discharge” the USAA companies and the “Released Persons” from all “Released Claims,” as described in the Settlement Agreement. You can get a copy of the Settlement Agreement on the Settlement website or by contacting the Settlement Administrator.

The Settlement Agreement specifically describes the Released Claims in legal terminology. Talk to Class Counsel or your own lawyer if you have questions about the Released Claims or what they mean.

Exclusions are no longer accepted as the deadline for exclusions was September 27, 2023.

Exclusions are no longer accepted as the deadline for exclusions was September 27, 2023.

Yes. The Court has appointed the following law firms and attorneys to represent you and other Class Members in the Settlement:

These lawyers are called Class Counsel. If you want to be represented by your own lawyer, you may hire one at your own expense.

Class Counsel will file an application for attorneys’ fees and costs for no more than 30% of the Cash Settlement Benefits, which is $4,079,287.50.00, subject to Court approval. You will not be personally responsible for any fees, costs, or expenses incurred by Class Counsel relating to the prosecution of this case. However, each Settlement Class Member Payment will be reduced by each Class Member’s proportional share of Class Counsel Fees and Costs and Class Representative Service Awards.

Objections are no longer accepted as the deadline was September 27, 2023.

The Court held a Final Approval Hearing on November 17, 2023, at 9:00 a.m. to decide whether to approve the settlement.

If you are a Settlement Class Member and did nothing, you will be part of the Settlement Class, but you will not get any Settlement Benefits.

Unless you opted out of the Settlement, you are not permitted to continue to assert claims about the issues in this case or, subject to the Release, in any other lawsuit against USAA ever again.

You can contact the Settlement Administrator by calling toll-free 1-877-629-9695, via email at info@TexasTotalLossClassActionSettlement.com or by writing to Arevalo et. al. v. USAA Casualty Insurance Company et al., Class Action Settlement, P.O. BOX 4876, Portland, OR 97208-4876.

PLEASE DO NOT TELEPHONE THE COURT OR THE COURT’S CLERK OFFICE TO INQUIRE ABOUT THIS SETTLEMENT OR THE CLAIM PROCESS.