Pennsylvania Eastern District Court Judge Karen Spencer Marston approved a class action settlement agreement that claimed Allstate did not reimburse sales tax on leased vehicles that were subsequently deemed a total loss, as required by Pennsylvania law.
In Erby v. Allstate Fire & Casualty Insurance Company, No. 2:18-cv-04944-PBT, the plaintiff and class members claimed that Allstate failed to reimburse the applicable sales tax on “total loss” leased vehicles, i.e., leased vehicles that were damaged beyond repair.
“The Settlement is fair, reasonable, and adequate. ”
The Settlement is in Good Hands
As estimated by an expert for the class, the total amount of sales tax that Allstate failed to reimburse during the class period ranges from $3,427,380 to $3,981,780.
As set forth in the settlement agreement, Allstate will make a payment to each member of the settlement class who submits a timely and valid claim form. Based on the website established for the class, and as stated in the order, the deadline to file a claim is October 26, 2022.
The settlement agreement entitles eligible class members who made a claim to state sales tax of 6% plus local sales tax based on the actual cash value as previously adjusted of the total loss vehicle at the time of loss. As stated in the decision, “[t]he Settlement Agreement defines Full Sales Tax as “the amount of sales tax that would be due based on the adjusted vehicle value of the insured vehicle as determined by Allstate at the time of the total loss in the Pennsylvania county where the Settlement Class Member resided at the time of the total loss.”
Further, the settlement provides claimants with full relief, meaning that any class member who submits a claim will receive 100% reimbursement of the sales tax owed to them.