Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Last week, a Florida federal judge granted summary judgment in favor of a plaintiff who accused GEICO General Insurance Company of failing to pay state and local sales tax and title transfer fees in the settlement of total loss claims on leased vehicles.
Plaintiff Kerry Roth had a leased vehicle insured by GEICO’s private passenger auto policy. In June 2016, the vehicle was damaged in an accident and Roth filed a claim with GEICO, which determined the vehicle to be a total loss, according to the GEICO class action lawsuit.
GEICO paid for the value of Roth’s total loss leased vehicle but failed to pay sales tax damages and title transfer fee damages that Roth says she was entitled to receive according to her GEICO insurance policy.
Roth initially filed the GEICO class action lawsuit on Aug. 30, 2016 in Florida state court. It was removed to Florida federal court later that year, and was partially dismissed on Jan. 24, 2017.
Roth’s amended GEICO class action lawsuit includes a breach of contract claim against the insurance company. She claims GEICO fails to include sales tax or title transfer fees in its actual cash value payments to insureds in settlement of total loss claims, in violation of the insurer’s policy language.
The GEICO class action lawsuit was granted Class certification on May 4, 2018. Roth and GEICO each moved for summary judgment.
Roth argued that GEICO violated the terms of its own policy and well-settled Florida law by failing to pay all costs necessary to replace a total loss vehicle.
GEICO argued in its motion for summary judgment that its policy and Florida law are clear that neither sales tax or title transfer fees are covered and that Roth therefore cannot prove breach of contract or damages.
U.S. District Judge William P. Dimitrouleas on Thursday issued an order granting Roth’s motion for summary judgment and denying GEICO’s motion. He found that, under Florida law, any ambiguities in an insurance policy should be interpreted in favor of the insured.
GEICO’s policy reportedly does not inform insureds that leased values will be valued differently than owned vehicles.
“Rather, the Policy provides notice of just the opposite: the Policy defines owned, financed, and leased vehicles to all be considered ‘owned autos’ under the Policy,” Judge Dimitrouleas says in his order. “There are no separate provisions in the Policy that apply to owned vehicles only, financed vehicles only, or leased vehicles only.”
The judge agreed with Roth’s assertion that sales tax and title transfer fees are mandatory fees imposed by Florida law on the replacement of all vehicles, and points to case law in the state that holds insurers must pay all costs associated with the replacement or repair of the damaged property.
“Sales tax and title transfer fees are mandatory parts of the replacement cost under the GEICO Policy for Plaintiff Roth’s (and the class members’) leased total loss vehicle and therefore are components of ‘actual cash value’ under the Policy,” Judge Dimitrouleas concluded in his order.
“Accordingly, GEICO’s failure to pay leased vehicle total loss insureds sales tax in the amounts of 6% of the value of the vehicle (plus any local taxes) and title transfer fees in the amount of $75.25 constitutes a breach of contract.”
Roth is represented by Edmund A. Normand and Jacob Phillips of Normand PLLC, Christopher J. Lynch of Christopher J. Lynch PA, Bradley W. Pratt of Pratt Clay LLC, Tracy L. Markham of Avolio & Hanlon PC and Andrew Lampros of Hall & Lampros LLP.
The GEICO Class Action Lawsuit is Kerry Roth v. GEICO General Insurance Co., Case No. 0:16-cv-62942, in the U.S. District Court for the Southern District of Florida.
UPDATE: March 2019, a website has been established informing GEICO total loss class action lawsuit Class Members of their rights. Learn more here.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
15 thoughts onGEICO Total Loss Sales Tax Class Action Wins Summary Judgment
My car was totaled 2016. New Jersey Manufacturer did not reimburse me for taxes and title expenses.
Mercury insurance is my provider, my totaled vehicle was a Honda Acord….not sure if they paid in full or not, please add me
I had state farm ins my 2012 Hyundai Tucson it was a total loss in 2019. Can I be added to law suit
Geico should have considered my car a total because they paid out more then the value of the car. What can I do? I have the value of my car by their claims adjuster and the total they paid out. All documents from Geico.
I live in Oregon. Can I still join the Class Action Suit against Geico? My car was totaled and they paid off my balance for the car except for $700 or so. Do I have any recourse?
I live in Oregon. Can I still join the Class Action Suit against Geico? My car was totaled and they paid off my balance for the car except for $700 or so. Do I have any recourse?
Please add me to the list my Nissan versa was totalled due to a car accident about 4 years ago and yes I had insurance with Lincoln acceptance!!
please add me
Going through this same battle with them right now, here in CA. One would think that they would have revised their policy of not paying tax after this judgment but, they are still brazenly denying paying tax in states other than FL. Thank you very much for posting this article, I am using Judge Dimitrouleas’ ruling in my letter to GEICO demanding they pay tax and am threatening to start similar class action if they do not.
When will I actually expect refund on class action suit on leased cars
I too had an total accident in 2018. No one has reached out to me.