v.
State
ACCEPTED
03-15-00436-CV 6093950 THIRD COURT OF APPEALS AUSTIN, TEXAS 7/16/2015 11:28:36 AM JEFFREY D. KYLE CLERK NO. 03-15-00436-CV ___________________________________________________ FILED IN 3rd COURT OF APPEALS IN THE COURT OF APPEALS AUSTIN, TEXAS THIRD JUDICIAL DISTRICT COURT 7/16/2015 11:28:36 AM JEFFREY D. KYLE AUSTIN, TEXAS Clerk
___________________________________________________
CHARLES O. “CHUCK” GRIGSON, APPELLANT VS.
FARMERS GROUP, INC., FARMERS UNDERWRITERS ASSOCIATION, FIRE UNDERWRITERS ASSOCIATION, FARMERS INSURANCE EXCHANGE, FIRE INSURANCE EXCHANGE, TEXAS FARMERS INSURANCE COMPANY, MID-CENTURY INSURANCE COMPANY OF TEXAS, MID-CENTURY INSURANCE COMPANY, TRUCK INSURANCE EXCHANGE, TRUCK UNDERWRITERS ASSOCIATION, FARMERS TEXAS COUNTY MUTUAL INSURANCE COMPANY, AND THE STATE OF TEXAS, THE TEXAS DEPARTMENT OF INSURANCE, AND THE TEXAS COMMISSIONER OF INSURANCE, APPELLEES ___________________________________________________ On Interlocutory Appeal from the 53rd District Court of Travis County, Texas ___________________________________________________
APPELLANT GRIGSON’S EMERGENCY MOTION
TO STAY THE SENDING OF CLASS NOTICE
___________________________________________________
TO THE HONORABLE JUSTICES OF THE THIRD COURT OF APPEALS:
COMES NOW, Appellant [Intervenor below] Charles O. “Chuck: Grigson [“Grigson”] who files this Emergency Motion to Stay Class Notice pending his interlocutory appeal pursuant to §51.014(a)(3), Texas Civil Practices & Remedies Code and Rules 9, 10 and 29.5 of the Texas Rules of Appellate Procedure. Grigson seeks emergency relief pursuant to Rule 10.3(a)(3), and in support thereof, respectfully shows the Court the following: 1. This is an interlocutory appeal of an order entered on July 6, 2015 certifying a settlement class action. Under the order, class notice must be sent by September 7, 2015; beginning July 13, 2015 class notice must be continuously posted on the settling parties’ websites; class members desiring to opt out or file objections must do so in writing by November 13, 2015; and the hearing on final approval is set for February 1, 2016. (Order of Preliminary Approval, paras. [6], 7, 11, and 12) (Ex. A) (“the 2015 order”).
2. Section 51.014(b) of the Texas Civil Practice and Remedies Code stays “all other proceedings in the trial court pending resolution” of this appeal. It is clear that the final hearing cannot be held on February 1, 2016—nor can the other deadlines in the order and notice be met--before the Court can dispose of the merits of this appeal.[1] Accordingly, the class notice ordered by the trial court will misinform and confuse the putative class and interfere with Court’s jurisdiction to determine whether the 2015 order and the notice it requires can be upheld.
Fartpers Insurance Exchange, Fire Insurance Exchange, Texas Farmers Insurance Company, Mid-Century Insurance Company of Texas, Mid-Century Insurance Company, Farmers Texas County Mutual Insurance Company, Truck Insurance Exchange, and Truck Underwriters Association (collectively, the "Farmers Parties"). The State and the Farmers Parties have moved jointly, pursuant to Texas Rule of Civil Procedure Rule 42(e) and Texas Insurance Code § 541 .266, for an Order of Preliminary Approval ("Order") (I) preliminarily approving the settlement of all claims asserted in the above-captioned cause ("Action"), the terms of which are set forth in the Second Amended Settlement Agreement, which has been filed with the Clerk of the Court, and (2) approving the proposed notice to the Classes.
The Court having read and considered the Second Amended Settlement Agreement and attached exhibits, including the proposed Notice of Proposed Class Settlement, the proposed Claim Form, the proposed form of Final Judgment, exhibits, pleadings and record in this case, the evidence and other materials presented at the hearing, and argument of counsel and applicable authorities, fmds that there exists substantial and sufficient grounds for entering this Order.
IT IS THEREFORE ORDERED, ADJUDGED, AND DECREED THAT:
I. The Court, for purposes of this Order, adopts all defined terms as set forth in the Settlement Agreement.
(ii) All of the Exchanges' Texas homeowners insurance policyholders who according to Farmers' records were eligible to receive discounts for FPRA, age of home, or territory from November 16, 2000, through and including December 10, 2002 ("Discount Class"); and
(iii) All Texas homeowners or automobile insurance policyholders of the Exchanges or the Automobile Insurance Providers who according to Farmers' records were provided or should have been provided a Credit Usage Notice from October 1, 1999, through February 28, 2003 ("Credit Usage Notice Class")
That certification decision has been affirmed in its entirety by the appellate courts of Texas. Farmers Grp., Inc. v. Lubin, 222 S.W.3d 417, 420, 427-28 (Tex. 2007) (holding that "the standard class action requirements must be applied generally to the claims asserted by Attorney General, not the Attorney General himself," and directing court of appeals to address intervenors ' remaining points of error on remand); Lubin v. Farmers Grp. , Inc. , No. 03-03- 00374-CV, 2009 WL 3682602, at[*26] -32 (Tex. App. -Austin Nov. [6], 2009, no pet.) (overruling intervenors' other objections to certification).
Agreement, and to show cause, if any exists, why a Final Judgment should not be entered in accordance with the terms of the Settlement Agreement.
www.tdi.texas.gov and www .fanners.com), as well as at www.TexasFarmersSettlement.com, a Summary Notice of Settlement, substantially in the form attached as Exhibit 3 ("Summary Notice") (in both English and Spanish). The Court will permit the Parties to the Settlement Agreement to additionally post the following items on the TexasFarmersSettlement.com website: (a) a copy of the executed Second Amended Settlement Agreement (and exhibits) and (b) Commonly Asked Questions and Answers that are either approved by the Parties or ordered by the Court.
declarations of the person or persons under whose general direction the mailing of the Notice and the distribution of the Summary Notice by posting on the web-sites identified in paragraph 7 shall have been made, showing that such mailing and distribution have been made in accordance with this Order.
the Action. Any Class Member who does not request exclusion in the manner provided for in this Order may, but need not, enter an appearance in this Action at his or her own cost through counsel of his or her own choice. If a member of the Settlement Classes does not enter an appearance, that person' s interests will be represented by the State in the Action.
Austin, Texas 78711-2548, and the third addressed toM. Scott Incerto, Norton Rose Fulbright US LLP, 98 San Jacinto Boulevard, Suite 1100, Austin, Texas 78701. If an objection does not include all of the required information or if it is not timely mailed to the three correct addresses, then it shall be invalid, and it will not be considered by the Court. Any member of the Settlement Classes who does not object in the manner provided shall be deemed to have waived such objection and shall forever be foreclosed from making any objection to the fairness, adequacy, or reasonableness of the Settlement Agreement and the proposed Final Judgment. Any replies to such objections shall be filed by December 15, 2015.
Agreement, unless they file a written request for exclusion from the Settlement Classes as provided in paragraph 11 above.
terminate the Settlement Agreement pursuant to its terms, then the Second Amended Settlement Agreement and any actions to be taken in connection with it shall be vacated and terminated and shall become null and void for all purposes, and all negotiations, transactions and proceedings connected with it (a) shall be without prejudice to the rights of any Party; (b) shall not be deemed or construed as evidence or an admission by any Party of any fact, matter or thing; and (c) shall not be admissible in evidence or used for any purpose in any subsequent proceeding in the Action, or any other action or proceeding in this or any other forum, judicial, administrative, or otherwise, except proceedings to enforce the Settlement.
SIGNED ~1,6; Zt1il_ ,2015.
Exhibit 1
261 ST DISTRICT COURT OF TRAVIS COUNTY, TEXAS
If You Had Certain Home or Auto Insurance in Texas, You May Be Eligible for Benef its from a Class Action Settlement.
A Texas court authorized this notice. This is not a solicitation from a lawyer. • You have been identified from Farmers' records as someone who had a homeowners or automobile insurance policy in Texas between October 1999 and February 2003 . • A Settlement has been reached with certain Insurance Exchanges and Providers ("the Defendants," see Question 1 for a complete list) in a class action lawsuit about the pricing and marketing of certain homeowners and automobile insurance policies. Generally, the Settlement includes Texas homeowners or automobile insurance policyholders who had certain types of insurance policies with the Defendants between October 1, 1999 and February 28, 2003 (see Questions 5 & 6). • The Settlement provides payments to eligible policyholders for rate reductions or discounts on past insurance prem iums and free credit reports and payments of $35 for not receiving adequate notice from the Defendants about their use of credit information (see Question 9).
Your legal rights are affected even if you do nothing. Please read this notice carefully.
YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
SUBMIT A CLAIM The only way to get a payment under the Credit Usage Fund (see Question 13).
ASK TO BE Get no benefits from the Settlement. This is the only option that allows EXCLUDED you to sue the Defendants over the claims resolved by this Settlement. OBJECT Write to the Court if you don 't like the Settlement. Go TO A HEARING Ask to speak in Court about the fairness of the Settlement. Do NOTHING Receive payment (if eligible) as a member of the Rate Class or Discount Class. Do not receive payment under the credit usage fund. Give up rights to pursue your own lawsuit about the claims this Settlement resolves.
• These rights and options-and the deadlines to exercise them-are explained in this notice.
• The Court in charge of this case still has to decide whether to approve the Settlement. Payments will only be made if the Court approves the Settlement and after any appeals are resolved. Please be patient.
QUESTIONS? CALL 1-888-222-0691 OR VISIT WWW.TEXASfARMERSSETILEMENT.COM PARA UNA NOTIFICACION IN ESPANOL, LLAMAR 0 VISITAR NUESTRO WEBSITE.
What This Notice Contains BASIC INFORMATION ...................................................................................................... 3 I. Why is there a notice?
2. What is this lawsuit about?
3. Why is this a class action?
4. Why is there a Settlement?
WHO IS PART OF THE SETTLEMENT? .....•..................................................................... 4 5. Who is inc luded in the Settlement? 6. What type of insurance policies are involved in the Settlement? 7. What is a Credit Usage Notice?
8. What if I am not sure whether I am included in the Settlement? THE SETTLEMENT BENEFITS ...................•..................................................................... 5 9. What does the Settlement provide? 10. What can I get from the Settlement? 11. When will I receive my payment?
12. What am I giving up to stay in the Settlement Class? HOW TO GET BENEFITS .................................................................................................. 6 13. How dol get benefits?
EXCLUDING YOURSELF FROM THE SETTLEMENT...................................................... 7 14. How do I get out of the Settlement? 15. If 1 do not exclude myself, can I sue the Defendants for the same thing later? 16. If I exclude myself, can I still get benefits from this Settlement?
BASIC INFORMATION lt. Why is there a notice?
A Court authorized this notice because you have a right to know about a proposed Settlement of this class action lawsuit and about all of your options before the Court decides whether to give final approval to the Settlement. This notice explains the lawsuit, the Settlement, and your legal rights. Judge Scott H. Jenkins of the 261"' Judicial District Court of Travis County, Texas is overseeing this case. This litigation is known as State ofTexas v. Farmers Group, Inc. , No. GV202501. The people who sued are called the " Plaintiffs." The Defendants are: Farmers Group, Inc., Farmers Underwriters Association, Fire Underwriters Association, Farmers Insurance Exchange, Fire Insurance Exchange, Texas Farmers Insurance Company, Mid-Century Insurance Company of Texas, Mid-Century Insurance Company, Farmers Texas County Mutual Insurance Company, Truck Insurance Exchange, and Truck Underwriters Association.
I 2. What is this lawsuit about?
The lawsuit claims that, during 1999 to 2003, the Defendants:
• Charged rates that resulted in excessive premiums for its homeowners policies written on a form approved by the Texas Department of Insurance ("TDI") called the HO-A and used unfair or deceptive practices invo lving the determination of certain fees, discounts, and policy offerings, and improper use of credit scoring and certai n risk assessments.
• Failed to prov ide adequate notices that information on certain policyholders' credit reports may have impacted their premiums or policy placement and used anticompetitive practices in the sale and marketing of homeowners and automotive insurance policies.
• Improperly stopped offering a type of homeowners policy called the HO-B. The Defendants deny these claims and maintain they did nothing wrong. I 3. Why is this a class action?
In a class action, one or more people or entities sue on behalf of themselves and other people with similar claims. All of these people together are the "class" or "class members." In this case, the representative entities are the State of Texas, the TDI, and the Texas Commissioner of Insurance. One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. I 4. Why is there a Settlement?
The Court has not decided in favo r of the Plaintiffs or the Defendants. Instead, both sides have agreed to a Settlement. By agreeing to the Settlement, the Parties avoid the costs and uncertainty of a trial, and Class Members receive the benefits described in this notice. The proposed Settlement does not mean that any law was broken or that the Defendants did anything wrong. The Defendants deny all legal claims in this case. The TDI, the Texas Commissioner of Insurance, and the Attorney General of Texas think the proposed Settlement is best for everyone who is affected.
QU ESTIONS? CALL 1-888-222-0691 OR VISIT WWW.TEXASFARMERSSETILEMENT.COM WHO Is PART OF THE SETTLEMENT?
If you received this notice addressed to you in the mail (without requesting it), then you may be a member of one or more Settlement Classes. But even if you did not receive a notice, you may be a Class Member, as described below.
I 5. Who is included in the Settlement? The Settlement includes three Classes. You may be member of more than one Class. You are included if you are or were covered under an included Texas policy issued by one of the Defendants and you meet the following criteria:
CLASS T YPE OF POLICY CLASS DEFINITION Policy began (or was renewed) from December 28, Rate Class Homeowners policy 200 I through November I 0, 2002, or you received a notice at any time after November 14, 200 I, that your HO-B policy would not be renewed (see Question 6). Policy where, according to Defendants' records, you are Discount Class Homeowners policy eligible under the Settlement to receive recalculated discounts on your premiums from November 16, 2000 through December I 0, 2002.
Policy where, according to Defendants' records, you Credit Usage Homeowners or were provided or should have been provided a Credit Notice Class automobile insurance Usage Notice from October I, 1999 through February policy 28, 2003.
I 6. What types of insurance policies are involved in the Settlement? The Settlement includes Farmers homeowners policies written on TDI-endorsed forms described as HO-A (including TDP-1 ), HO-B (including HO-Protector Plus, H0380 endorsement, TDP-2, TDP-3, OF-Builders Risk, and HO-A w ith H0-170 endorsement), HO-B-CON, and HO-B-T, and all endorsements approved by TDl for use with such forms during the time periods described above. It also includes Farmers private passenger automobile insurance policies during the same time.
I 7. What is a Credit Usage Notice? A Credit Usage Notice is a notice of "adverse action" under the Fair Credit Reporting Act ("FCRA"), a U.S. federal law. Adverse action could mean being denied credit, receiving substandard terms from a lender, or, as in this case, receiving higher insurance rates or being placed with a different insurer because of your credit information.
As part of the claim process (see Question 13), C redit Usage Notice Class Members will have the opportunity to access and review a copy of their credit reports.
I 8. What if I am not sure whether I am included in the Settlement? If you are not sure whether you are incl uded in the Settlement, you may call 1-888-222-0691 with questions or visit www.TexasFarmersSettlement.com. You may also write with questions to Texas Farmers Settlement, P.O. Box 9348, Minneapolis, MN 55440-9348.
THE SETTLEMENT BENEFITS
I 9. What does the Settlement provide? If the Settlement is approved and becomes final, it wi ll provide certain cash benefits to eligible C lass Members. There are approximately 1.8 million members of the Settlement C lasses, but not all Class Members are eligible to receive cash payments for rate reductions or discounts. The Defendants will pay a total of$84.38 million to those members ofthe Rate Class and Discount Class who are eligible to receive a payment from the Settlement. The Defendants will also provide payments of$35 to eligible Credit Usage Notice Class Members who timely file proofs of claim and follow the process outlined in the Claim Form and in section IV( 4) of the Settlement Agreement (see Question 13). Policyholders who renewed or received a new HO-A insurance policy from the Defendants after November II, 2002 and before September I, 2003 , have already received an additional reduction in premiums. More details are in a document called the Settlement Agreement, which is available at www.TexasF armersSettlement.com.
Ito. What can I get from the Settlement? Not every Class Member will receive a payment. The amount of your payment will depend on which Class you are in and whether you are eligible to receive a payment under the terms of the Settlement Agreement. Depending upon your eligibility, you may receive payments under one or more of the Settlement Classes. Class Members may receive the following:
CLASS B ENEFITS NEED TO FILE A CLAIM? Rate Class Payments for rate reductions on No, payments for rate reductions HO-A prem iums (amounts will will be automatic for all eligible vary). Rate Class Members. Discount Class Compensation for eligible Class No, payments to eligible Members based on negotiated Discount Class Members will be discounts (amounts will vary). automatic. Credit Usage Notice Class Free access to policyholder Yes (see Question 13). credit report from Equifax and $35 payment if you complete the Claim Form process.
The Defendants also agreed to replace their Credit Usage Notice forms for Texas homeowners and automobile insurance policies with fonns approved by the Texas Department oflnsurance (TDI) and agreed to change certain marketing practices.
I 11. When will I receive my payment? Class Members who are entitled to payments will receive them after the Court grants final approval to the Settlement and after any appeals are reso lved (see "The Settlement Hearing" be low). If there are appeals, resolving them can take time. Please be patient. I 12. What am I giving up to stay in the Settlement Class? If the Settlement becomes final , you will give up your right to sue the Defendants for the claims being resolved by this Settlement unless you exclude yourself from the case. The specific claims you are giving up against the Defendants are described in Section I of the Settlement Agreement. You will be "releasing" the Defendants and all related people as described in Section I of the Settlement Agreement. The Settlement Agreement is avai lable at www.TexasFarmersSettlement.com. The Settlement Agreement describes the "Released Claims" with specific descriptions, so read it carefully . If you have any questions about what this means, you can write to the Office of the Attorney General, Consumer Protection Division, P.O. Box 12548, Austin, TX 78711 -2548. You can also talk to your own lawyer, if you have one.
Note: The release does not include individual claims or complaints about claims, payments, handli ng or processing made by individual policy holders or the TD I. The release also does not include certai n claims made in two other class action lawsuits: • Geter v. Farmers Group, Inc., No. E-0167872-a class action relating to homeowners' insurance requesting a non-monetary j ud icial statement that Farmers acted improperly in not renewi ng HO- B policies for the class members, as was certified for a class action in the 172nd District Court of Jefferson County, Texas.
• State of Texas v. Texas Farmers Insurance Company , No. GV000271-a class action relating to automobile insurance in the 2001h Judicial District Court of Travis County, Texas.
EXCLUDING YOURSELF FROM THE SETTLEMENT
If you don't want benefits from this Settlement, and you want to keep the right to sue the Defendants about the issues in this case, then you must take steps to get out of the Settlement. This is called excluding yourself--or it is sometimes referred to as "opting out" of the Classes. lt4. How do I get out ofthe Settlement? To exclude yourself from the Settlement Classes, you must mail a letter that says you want to be excluded from the Settlement in State ofTexas v. Farmers Group, Inc. , No. GV202501. Your request must include: • Your name, address, and telephone number; • Whether you have or had a homeowners or automobile insurance policy from the Defendants, or both;
• The date the policy(ies) began and the most recent date of renewal (if known) ; • The policy number(s); and • Your signature.
You must mail your exclusion request, postmarked no later than Month 00,2015, to:
Texas Farmers Settlement Exclusions P.O. Box 9348 Minneapol is, MN 55440-9348 You cannot ask to be excluded on the phone, by email, or at the website. Its. If I do not exclude myself, can I sue the Defendants for the same thing later? No. Unless you exclude yourself, you give up the right to sue the Defendants for the claims that this Settlement resolves.
lt6. If I exclude myself, can I still get benefits from tbis Settlement? No. You will not get the benefits provided if you exclude yourself from the Settlement. However, if you renewed an HO-A homeowners policy with the Defendants, the prospective Rate Reduction was reflected in your premiums between November 10, 2002 and September I, 2003. lt7. What about other cases involving the issues in this case? You may have received or seen other notices about other class actions about insurance policy options, prem ium rates, and/or credit usage, including: • Fogel v. Farmers Group, Inc., No. BC 300142, a nationwide class in the Superior Court for the State ofCaliforn ia for the County of Los Angeles (the " Fogel Action"); • Geter v. Farmers Group, Inc. , No. E-0 167872 in the 172"d District Court in Jefferson County, Texas (the "Geter Action"); and • In re: Farmers Insurance Co. , Inc. FCRA Litigation, No. CIY-03-158-F, a nationwide class that includes all cases consolidated and coordinated in MDL No. 1564 in the U.S. District Court for the Western District of Oklahoma (often referred to as the " Mobbs Action").
If you were a Class Member in the Fogel Action, you are eligible to participate in this Settlement as well. If you do not exclude yourself from this Settlement, you can receive benefits here and also participate in the Geter Action by seeking a judicial statement that Farmers acted improperly in not renewing HO-B homeowners policies to the class members. However, except as provided in the Settlement Agreement, you will give up all other claims, incl uding any claims for monetary damages, related to the Geter Action. If you filed a claim in the Mobbs Action (which was also FCRA-related), you are eligible to participate in the Rate Class and Discount Class benefits, but you are not eligible to receive a payment under the Credit Usage Fund.
WHO REPRESENTS ME IN THIS CASE?
I 18. Who represents my interests in this case? Your interests will be represented by the State of Texas through the Office of the Attorney General. You will not be charged for their services. By law, the Office of the Attorney General cannot represent you individually . If you want to be represented individually by your own lawyer, you are free to hire one at your own expense. You may write with any questions you may have about the information in this Notice to:
Office of the Attorney General Consumer Protection Division P.O. Box 12548 Austin, TX 7871 1-2548
OBJECTING T o THE SETTLEMENT I 19. How do I tell the Court if I do not like the Settlement? If you are a member of the Settlement Classes (and do not exclude yourself), you can object to any part of the Settlement or the Settlement as a whole. To object, you must mai l a letter that includes the following: • A reference at the top to: State of Texas v. Farmers Group, Inc. , No. GV20250 I; • Whether you intend to appear at the Settl ement Hearing in person or through a lawyer (see Question 22);
• A detailed statement of the reasons you object to the Settlement; • Your name (and your previous name if the name on the notice you were mailed was different), address, telephone number, and fax number (if you have one); • Your type ofpoli cy(ies) and the policy number(s); and • Your signature (or the signature of your authorized representative). The requirements to object to the Settlement are described in detai l in the Settlement Agreement in section VII. You must mail your objection to each of the fo llowing three addresses, and your objection must be postmarked by Month 00, 2015: COURT ATTORNEY GENERAL DEFENSE COUNSEL District Court Clerk of Travis Joshua R. Godbey M . Scott lncerto County, Texas Assistant Attorney General Norton Rose Fulbright US LLP 1000 Guadalupe Street Office of the Attorney General 98 San Jacinto Blvd., Suite Austin, TX 7870 I P.O. Box 12548 1100 Austin, TX 78711-2548 Austin, TX 7870 I I 20. What is the difference between objecting and asking to be excluded? Objecting is simply telling the Court that you don ' t like something about the Settlement. You can object only if you don ' t exclude yourself from the Classes. Excluding yourself is telling the Court that you don ' t want to be part of the Classes. If you exclude yourself, you have no basis to object because the case no longer affects you.
THE SETTLEMENT HEARING
The Court will hold a hearing to decide whether to approve the Settlement. You may attend and you may ask to speak (see Questions 22 & 23), but you do not have to. I 21. When and where will the Court decide whether to approve the Settlement? The Court will hold a Settlement Hearing at XX:OOx.m. on Month 00, 2015, at the District Court of Travis County, Texas, 1000 Guadalupe Street, Austin, TX 7870 I. The hearing may be moved to a different date or time without additional notice, so it is a good idea to check www.TexasFarmersSettlement.com or call 1-888-222-0691. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them and will listen to people who have asked to speak at the hearing. After the hearing, the Court will decide whether to approve the Settlement. We do not know how long these deci sions will take. I 22. Do I have to attend the hearing? No. The Office of the Attorney General will answer any questions the Court may have. But you or your own lawyer are welcome to attend at your expense. If you send an objection, you do not have to come to Court to talk about it. As long as you mai led your written objection on time, the Court will consider it. You may also have your own lawyer attend, but it is not necessary. I 23. May I speak at the hearing?
You may ask the Court for permission to speak at the Settlement Hearing.
GETTING M ORE INFORMATION
124. How do I get more information?
This notice summarizes the proposed Settlement. More details are in the Settlement Agreement. You can get a copy of the Settlement Agreement at www.TexasFarmersSettlement.com . You also may write with questions to Texas Farmers Settlement, P.O. Box 9348, Minneapolis, MN 55440-9348 or call the toll-free number, 1-888-222-0691. You can also request a Claim Form at the website, or by calling the toll free number.
You may also write with any questions you may have about the information in this Notice to: Office of the Attorney General, Consumer Protection Division, P.O. Box 12548, Austin, TX 78711-2548. You can also get a copy of the Settlement Agreement at that address or at www.tdi.state.tx.us. Please do not contact the Court with any questions about the Settlement Agreement.
Exhibit 3
Legal Notice REPORTER'S RECORD
VOLUME 1 OF 2 VOLUMES
TRIAL COURT CAUSE NO. D-1-GV-02-002501
STATE OF TEXAS, THE TEXAS ) IN THE DISTRICT COURT DEPARTMENT OF INSURANCE, ) AND THE TEXAS ) COMMISSIONER OF ) INSURANCE, ) Plaintiffs, ) ) VS. ) ) ) FARMERS GROUP, INC., ) FARMERS UNDERWRITERS ) TRAVIS COUNTY, TEXAS ASSOCIATION, FIRE ) UNDERWRITERS ASSOCIATION, ) FARMERS INSURANCE ) EXCHANGE, FIRE INSURANCE ) EXCHANGE, TEXAS FARMERS ) INSURANCE COMPANY, ) MID-CENTURY INSURANCE ) COMPANY OF TEXAS, AND ) FARMERS TEXAS COUNTY ) MUTUAL INSURANCE COMPANY, ) Defendants. ) 261ST JUDICIAL DISTRICT -------------------------------------------------
HEARING ON JOINT MOTION FOR PRELIMINARY APPROVAL OF SECOND AMENDED
SETTLEMENT AGREEMENT
-------------------------------------------------- On the 1st day of July, 2015, the following proceedings came on to be heard in the above-entitled and numbered cause before the Honorable Scott H. Jenkins, Judge presiding, held in Austin, Travis County, Texas;
Proceedings reported by machine shorthand.
THE COURT: Thank you. Are we ready to move to our witnesses?
MR. GODBEY: Yes, Your Honor.
THE COURT: You may call your first witness.
MR. GODBEY: The State will call Commissioner David Mattax, Your Honor.
THE COURT: Please step forward in front of me and raise your right hand.
(The witness was sworn)
DAVID MATTAX, having been first duly sworn, testified as follows:
DIRECT EXAMINATION
BY MR. GODBEY:
Q. Good morning, Mr. Mattax. How are you today? A. Fine. Good morning. Thank you. Q. Would you please state your name for the record?
A. My name is David Calhoun Mattax.
THE COURT: And you don't have to worry about the microphone. In fact, you sit comfortably. THE WITNESS: I should probably sit back. Q. (BY MR. GODBEY) What is your current position? A. I'm the commissioner of insurance for the State of Texas.
Court meets all of the procedural requirements of the statute that we're under under the Insurance Code, and I think it's fair and ready for approval. So I think the procedural safeguards Mr. Boyd talked about have in fact been made.
Q. Okay. And they continue to be made in this proceeding, correct?
A. I think that's the point of why we're here, yes.
Q. Otherwise, I wouldn't be here being allowed to cross-examine you, would I?
A. Sure. I don't know. I think you'd be allowed to do whatever Judge Jenkins lets you do, but ...
Q. Let me go to class notice. Do you know how much class notice is going to be in this -- if this class gets approved and class notice is going to go out, how much money will be spent on that?
A. I was given a number.
Q. Let me give it to you. It's about $2,550,000. A. That sounds like the number I was given. Q. Okay. And now, that is money -- and there's no opt out of that, is there?
A. No, the money -- right. You can't opt out of -- there's no opt out of paying that money, if that's your question.
A. I don't know specifically how it's been carried. I haven't seen a piece of paper that shows that.
Q. We had those introduced and they're part of our exhibits --
A. Then --
Q. -- and we can talk about that if we need to. A. They will show what they show. THE COURT: Separate your speaking again, please. The court reporter just can't do this. Q. (BY MR. LONGLEY) As to class notice, I think we've agreed -- I want to make sure -- that the class notice is going to be paid from policyholder surplus.
A. That's my understanding, and I assume I'll be corrected if I'm wrong.
Q. And that's how you thought it was going to be paid last time?
A. That's correct.
Q. In other words, it hasn't changed from 2002 or '3 until now?
A. That's my understanding.
Q. And if it gets approved, that class notice can -- the way that you've set up this settlement is it will go out within 30 days of preliminary approval; is that correct?
REPORTER'S CERTIFICATE