Cavallaro v. United Services Automobile Association, et al.
Total Losses Tax Settlement
Case No. 1:20-CV-00414-TSB

Welcome to the Total Losses Tax Settlement Website

You may be eligible to receive a Cash Payment from a Class Action Settlement if you were an Ohio policyholder and insured by one of Defendants and submitted a Covered Total Loss Claim during the Class Period.

What is this lawsuit about?

The lawsuit claims that United Services Automobile Association, USAA Casualty Insurance Company, USAA General Indemnity Company, and Garrison Property and Casualty Insurance Company (“Defendants”) breached their contracts (Automobile Insurance Policies) by failing to fully pay Plaintiffs and other Ohio insureds who submitted physical damage claims for their vehicles during the Class Period, and which resulted in a Total Loss Claim Payment. Specifically, Plaintiffs allege that Defendants’ settlement practice of paying Sales Tax and Car Replacement Assistance ("CRA") Sales Tax on a reimbursement basis after the insured replaced their totaled vehicle was improper. Plaintiffs also allege that Defendants improperly failed to compensate insureds the cost of re-titling a salvaged vehicle retained by some insureds following a Total Loss. 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.

 

How do I know if I am in the Settlement Class?

You may be a member of the Settlement Class against Defendants if you were an Ohio policyholder and insured by one of Defendants and submitted a Covered Total Loss Claim during the following periods:

  1. Sales Tax Class Period:
    1. Garrison: September 16, 2005, through Preliminary Approval Date
    2. USAA CIC: October 26, 2012, through Preliminary Approval Date
    3. USAA: November 5, 2013, through Preliminary Approval Date
    4. USAA GIC: February 21, 2014, through Preliminary Approval Date
  2. CRA Sales Tax Period:
    1. Garrison: February 21, 2014, through Preliminary Approval Date
    2. USAA CIC: October 26, 2012, through Preliminary Approval Date
    3. USAA: February 21, 2014, through Preliminary Approval Date
    4. USAA GIC: February 21, 2014, through Preliminary Approval Date
  3. Salvage Class Period:
    1. Garrison: February 21, 2014, through Preliminary Approval Date
    2. USAA CIC: October 26, 2012, through Preliminary Approval Date
    3. USAA: February 21, 2014, through Preliminary Approval Date
    4. USAA GIC: February 21, 2014, through Preliminary Approval Date

If you already received Sales Tax, CRA Sales Tax, and/or Salvage Title Fees as part of your Total Loss Claim Payment, you are not part of the Settlement Class.

 

What does the Settlement provide?

As a part of the Settlement, the Defendants, have agreed, upon Court approval, to:

  1. Pay Settlement Class Members who timely submit a valid Claim Form Sales Tax on the actual cash value of their Total Loss at the Ohio state sales tax rate of 5.75%, reduced by each claimant’s proportional share of Class Counsel Fees, Service Awards, and court-awarded costs.
  2. Pay Settlement Class Members who had optional CRA Coverage and who timely submit a valid Claim Form for CRA Sales Tax an additional 20% of the Ohio state sales tax rate of 5.75% for their Total Losses, reduced by each claimant’s proportional share of Class Counsel Fees, Service Awards, and court-awarded costs.
  3. Pay Settlement Class Members who retained title to their Total Loss and who timely submit a valid Claim Form for Salvage Title Fee an additional $20.
  4. Pay Class Counsel Fees not to exceed $3,000,000.00, a Service Award not to exceed $5,000.00 to each Class Representative, and court-awarded costs not to exceed $25,000.00 from the Cash Settlement Benefits, with all amounts to be approved by the Court.

YOUR LEGAL RIGHTS AND OPTIONS

Option/Deadline Event
Do Nothing You have the right to do nothing.  If you do nothing, you will be bound by the terms of the Settlement and will release any claim against Defendants of Sales Tax, CRA Sales Tax, and Salvage Title Fees, even if you do not submit a Claim for payment. You will not receive a Settlement Class Member Payment if you do nothing. 
File a Claim
January 4, 2023 (Postmarked)
If you are a Settlement Class Member and want to be eligible to receive a payment, you must complete and submit a Claim Form. You may submit a Claim Form electronically here.
Exclude Yourself
October 6, 2022 (Postmarked)
If you exclude yourself from the Settlement Class, you give up your right to receive any benefits as part of this Settlement, and you will not be bound by any judgments or orders of the Court, whether favorable or unfavorable. However, you will keep your right to sue any of Defendants separately in another lawsuit if you choose to pursue one.
Object to the Settlement
October 6, 2022 (Postmarked)
If you think the terms of the Settlement are not fair, reasonable, or adequate to the Class Members, you may file a Notice of Intent to object to the terms of the Settlement.
Attend the Final Approval Hearing on December 5, 2022
October 6, 2022 (Postmarked)
Ask to speak in Court about your opinion of the Settlement. 

For More Information

Visit this website often to get the most up-to-date information.

Mail
Cavallaro v. USAA
c/o JND Legal Administration
PO Box 91349
Seattle, WA 98111