United States District Court, E.D. Arkansas, Western Division
KENNETH WILLIAMS, MARY WILLIAMS, and KENNETH L. WILLIAMS, on behalf of themselves and all other similarly situated PLAINTIFFS
STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY DEFENDANT
Mary Williams and Kenneth L. Williams were involved in an
automobile accident. The record reflects that the following
... The Williams' vehicle was insured by Defendant State
Farm Automobile Insurance Company. The other vehicle involved
in the accident was insured by Allstate Insurance Company.
Mary and Kenneth L. Williams were injured in the accident and
received a settlement or damage award from Allstate.
Plaintiffs were required to pay a portion of their recovery
to Defendant State Farm as subrogation. There was no
agreement between the Plaintiffs and Defendant that
Plaintiffs had been “made whole” prior to the
See Docket Entry 30 at CM/ECF 1. The plaintiffs
began this case by filing a complaint and seeking, inter
alia, class certification on behalf of all others
States District Judge James M. Moody, Jr., the judge to whom
this case was then assigned, granted the plaintiffs'
motion for class certification. He identified the class as
Residents of the State of Arkansas who, during the Class
Period of October 14, 2006 through the date of resolution of
this action, (a) have, had, or were covered under a contract
of automobile insurance with Defendant that includes or
included an optional “med pay” and/or
“PIP” coverage, (b) received a payment from
Defendant under such coverage, (c) recovered money through
settlement or otherwise from a third-party tortfeasor,
without the assistance of counsel, and (d) had a portion of
such recovery taken by Defendant as subrogation or
reimbursement without (i) a judicial determination that the
insured was made whole or (ii) any documentation in the claim
file of an agreement that the insured was made whole.
See Docket Entry 85 at CM/ECF 2.
settlement conference with the undersigned, the parties
settled the case. They reduced their agreement to writing
(“Settlement Agreement”), and its provisions
included the following:
Claims Review Process and Identification of Qualifying
A. State Farm will review the claim files and related data to
identify any persons listed in the Class Data who are
“Qualifying Insureds.” Qualifying Insureds are
those persons who meet the following criteria: (a) they are
listed in the Class Data, (b) there is no objective
documentation in the relevant claim file demonstrating that
the person was represented by an attorney, (c) there is no
objective documentation in the person's claim file
memorializing an agreement that the insured was made whole,
and (d) there is no documentation that the reimbursement was
not med-pay recovery.
B. For each Qualifying Insured, State Farm will calculate the
Gross Subrogation Recovery Amount, defined as the subrogation
recovery amount plus interest accruing at six percent per
annum, from the first date of subrogation recovery through
the date of 90 days after the entry of the Stay Order.
C. State Farm will complete this process and provide all
required information to Plaintiff's Counsel, by no later
than 180 days from entry of the Stay Order. Any person listed
in the Class Data whose claim file has not been reviewed
within 180 days of the entry of the Stay Order, and who did
not request exclusion from the Class, shall be deemed a
Qualified Insured and will receive a Payment Check calculated
based upon the subrogation recovery amount in the Class Data,
in accordance with Paragraph 7.
D. During this review process every thirty (30) days, State
Farm will provide Plaintiff's Counsel with a report
identifying, cumulatively: (a) those persons determined to be
Qualifying Insureds, the subrogation recovery amount and the
Gross Subrogation Recovery Amount and (b) those persons State
Farm contends are not Qualifying Insureds along with
documentation supporting that contention. ...
E. If Plaintiff's Counsel objects to State Farm's
determination that a particular insured is not a Qualifying
Insured, Plaintiff's Counsel will inform State Farm of
that objection, and request any additional documents from the
claims files and data, within twenty (20) days of the
determination. State Farm shall respond to any such
objection/request within twenty (20) days. If the parties
cannot resolve the dispute over whether the documentation
provided by State Farm demonstrates that the insured is not a
Qualifying Insured, then the dispute will be resolved by
Magistrate Judge Patricia Harris, with no right of appeal.
... Such ...