Jeremy Peck On Behalf Of Himself And All Others Similarly Situated V

Key Facts

Transaction Type

Issues

• The court evaluated whether the class settlement between Plaintiff Jeremy Peck and Progressive Northern Insurance Company should be granted final approval. The court determined that the settlement satisfied all four Rule 23(a) requirements and the predominance requirement of Rule 23(b)(3). Under Rule 23(e), the district court must find that the settlement is fair, reasonable, and adequate before approving it.
• The court evaluated whether the settlement provides adequate relief to class members and if immediate recovery outweighs potential future relief from protracted litigation. The total settlement fund is $1,765,606.13, with members eligible for reimbursement of extra premium amounts paid for stacked coverage. The settlement includes injunctive relief prohibiting Progressive from selling stacked UM/UIM coverage to single-vehicle owners in New Mexico, with an estimated value of $500,000. No class members who received notice filed objections.
• The court determined that this case involved serious questions of law, including conspiracy and fraud claims which are difficult to prove. The initial complaint included a myriad of claims, and if Plaintiff had continued forward, the nine remaining claims would have demanded complex discovery and resolution of numerous legal questions. Whether Plaintiff would have been able to prove conspiracy or fraud was highly uncertain, making settlement preferable to protracted proceedings.
• The court examined whether Plaintiff's counsel adequately represented the class by evaluating their actual performance in litigating the case and negotiating settlement. Counsel engaged in lengthy settlement discussions starting in 2024, worked to promptly notify class members, and set up automatic payments for eligible individuals. The court found that class counsel has adequately represented class members' interests given the parties' extensive mediation efforts and absence of objections.
• The court evaluated whether the requested attorney fees of $906,242.45, reimbursement of gross receipts of $71,366.59, and costs of $11,465.72 totaling $989,074.76 are reasonable. Combined with the $1,765,606.13 settlement fund, the fees amount to 36% of the total fund, which falls within the 25-40% range typically authorized in the Tenth Circuit. The court found the award warranted given the number of years to reach resolution and difficulty of proving illusory benefit insurance cases.
• The court assessed whether the settlement negotiations were conducted in a manner that protected class interests. The parties negotiated at arm's length with the assistance of Rodney Max, a nationally recognized mediator. Both sides vigorously represented their interests throughout settlement discussions, and there was no evidence of collusion or conflicting interests between class members and counsel. The court found the settlement was fairly and honestly reached.
• The court examined whether the settlement treats class members equitably by dividing the class into two subgroups. The main settlement group consists of those who paid premiums for stacked single vehicle UIM coverage without statute of limitations defense and receive full reimbursement automatically. The second, smaller group consists of individuals for whom Progressive could raise a statute of limitations defense and must submit claims forms. The court found this difference equitable since the second group may still receive full reimbursement for excess premiums.

Holdings

• The Court awards Plaintiff's counsel $906,242.45 in attorneys' fees, $71,366.59 in reimbursement of gross receipts, and $11,465.72 in costs, plus a $20,000 service award to class representative Jeremy Peck. The action is dismissed with prejudice, with fees and costs limited to those specified in the order.
• The Court grants final approval of the class settlement between Plaintiff Jeremy Peck and Progressive Northern Insurance Company regarding improper stacking of uninsured/underinsured motor vehicle coverage charges for single-vehicle policyholders in New Mexico. The settlement includes a fund of $1,765,606.13 for reimbursement of overcharged premiums and injunctive relief prohibiting Progressive from selling stacked coverage to single-vehicle owners.

Remedies

• The Court granted declaratory relief prohibiting Progressive Northern Insurance Company from selling stacked UM/UIM coverage to single-vehicle owners in New Mexico. This injunctive relief will prevent harm to other New Mexicans and applies across the state. The parties estimate that the value of prohibiting Progressive companies from selling stacked UM/UIM coverage is $500,000.
• The Court granted final approval of the class settlement, awarding class members reimbursement for extra amounts paid in their premiums for stacked uninsured/underinsured motor vehicle coverage. The total settlement fund is $1,765,606.13, with members eligible for reimbursement of excess premiums from multiple years of policy purchases. Class members who are not subject to a statute of limitations defense may receive automatic payment for claims of ten dollars or more, while others must file a claim to receive payment.
• The Court awarded Plaintiff Peck, the class representative, a service fee of up to $20,000 for serving as the class representative and providing essential documents regarding his insurance policy. Plaintiff provided essential documents regarding his insurance policy, endured four years of litigation, and ensured that this case could be brought on behalf of a huge class of individuals.
• The Court awarded class counsel attorneys' fees of $906,242.45, reimbursement of gross receipts of $71,366.59, and costs of $11,465.72. These fees amount to 36% of the total settlement fund and will be paid independently of the class fund. The Court found that an award at the higher end of the scale was warranted given the number of years to reach resolution and the difficulty of proving illusory benefit insurance cases.

Contract Value

Monetary Damages

Legal Principles

• The settlement provides adequate relief to class members and the value of immediate recovery outweighs the possibility of future relief after protracted litigation. The settlement treats class members equitably relative to each other, with automatic payment for the main group and claim filing required for the statute of limitations group. The relief provided is satisfactory with no class member objections filed.
• Rule 23(e) of the Federal Rules of Civil Procedure governs approval of class action settlements. A district court must find the settlement is fair, reasonable, and adequate. The court considers whether class representatives adequately represented the class, the proposal was negotiated at arm's length, the relief provided is adequate, and the proposal treats class members equitably relative to each other.
• The settlement was fairly and honestly negotiated at an arm's length. Courts examine the fairness of the negotiating process in light of counsel experience, vigor of prosecution, and absence of coercion or collusion. The parties negotiated with the assistance of Rodney Max, whose reputation as a nationally recognized mediator buttresses confidence in the mediation. There is no evidence of collusion or conflicting interests between class members and counsel.

Precedent Name

• Anderson Living Tr. v. Energen Res. Corp.
• Rutter & Willbanks Corp. v. Shell Oil Co.
• Chieftain Royalty Co. v. Everest Energy Inst. Fund XIII-A, L.P.
• Voulgaris v. Array Biopharma Inc.

Cited Statute

• New Mexico Unfair Trade Practices Act
• Federal Rules of Civil Procedure Rule 23
• New Mexico Trade Practices and Frauds Act

Judge Name

Passage Text

• The Court finds that the settlement provides adequate relief which outweighs any speculative relief that might be obtained through further litigation. The parties estimate that the value of prohibiting Progressive companies from selling stacked UM/UIM coverage is $500,000. The settlement also includes injunctive relief. The parties estimate that the value of prohibiting Progressive companies from selling stacked UM/UIM coverage is $500,000. The Court finds that the settlement provides adequate relief which outweighs any speculative relief that might be obtained through further litigation.
• IT IS THEREFORE ORDERED that: (1) Plaintiff's Unopposed Motion for Final Approval of Class Action Settlement, Doc. 57, is GRANTED. (2) Plaintiff's Motion for Attorney Fees, Costs, and Service Awards, Doc. 56, is GRANTED. Class counsel is awarded attorneys' fees of no greater than $906,242.45, $71,366.59 in reimbursement of gross receipts, and $11,465.72 in costs. Plaintiff Peck is awarded a service fee of no more than $20,000.
• The total settlement fund is $1,765,606.13. Members are eligible for reimbursement of the extra amount paid in their premium for stacked coverage and may recover for multiple years of policy purchases. The class is divided between members who are not subject to a statute of limitations defense and those who are. The first group is eligible for automatic payment if their claim is for ten dollars or more. Those Class Members entitled to an Automatic Payment in an amount equal to or greater than Ten Dollars will receive a check by mail to the address the Settlement Administrator has on file, or may go to the Settlement Website and either provide an address to which the Settlement Administrator will send the check, or elect a payment method other than check to receive payment.

Damages / Relief Type

• Declaratory relief prohibiting Progressive from selling stacked UM/UIM coverage to single-vehicle owners in New Mexico
• $1,765,606.13 settlement fund for reimbursement of overcharged premiums on stacked UM/UIM coverage
• Injunctive relief requiring Progressive to cease selling stacked UM/UIM coverage on single vehicle policies