Jondro, et al. v. Country Mutual Insurance Company

A Court authorized the Class Notice because Class Members have a right to know about a proposed settlement of this class action, including the right to claim money, and about your options regarding this settlement before the Court decides whether to give “Final Approval” to the settlement. If the Court approves the parties’ settlement agreement (the “Settlement Agreement”), and if any appeals are resolved in favor of the settlement, then payments will be made to those who qualify and timely submit a valid Claim Form. This website explains the lawsuit, the settlement, your legal rights, what benefits are available, who may be eligible for them, and how to get them.

The Illinois state circuit court for Peoria County, Illinois is overseeing this class action. The case is called Jondro, et al. v. Country Mutual Insurance Company, No. 2022-LA-0000228. The persons who sued are called the “Plaintiffs,” and the company they sued is called the “Defendant.”

The settlement includes Country Mutual Insurance Company (“the Insurance Company”).

The lawsuit claims that the Insurance Company improperly deducted depreciation attributable to the costs of labor and other nonmaterial items when adjusting some property insurance claims covered under Commercial Property Policy forms in Arizona, Illinois, Missouri, Ohio, Tennessee, and Wisconsin. The Insurance Company has maintained that it paid claims when reasonable and appropriate to do so and has denied all allegations that it acted wrongfully or unlawfully.

In a class action, one or more people called “Class Representatives” (in this case, Nicholas Jondro, Neal Kahre, and Postal Properties - Westport Industrial, LLC) sue on behalf of people who have similar claims. All these people are a “Class” or “Class Members.” One court resolves the issues for all Class Members, except for those who exclude themselves from the Class.

The Court did not decide in favor of the Plaintiffs or the Insurance Company, and has not found that the Insurance Company did anything wrong. Instead, both sides agreed to settle. That way, the parties avoid the cost of a trial and potentially an appeal, and the people who qualify will get compensation. The Class Representatives and their attorneys think the settlement is best for all Class Members. The settlement does not mean that the Insurance Company did anything wrong, no trial has occurred, and no merits determinations have been made.

To see if you are eligible for benefits from this settlement, you first have to determine if you are a Class Member.

If you received a notice, then you have been identified as someone who is likely to be a member of the Class. The Class includes all Persons insured under a Commercial Property Policy issued by the Insurance Company, except for those excluded (see FAQ 7 below), who made a first party insurance claim for Structural Loss to a dwelling, building, or other structure located in the States of Arizona, Illinois, Missouri, Ohio, Tennessee, or Wisconsin under a Commercial Property Policy: (a) with a date of loss during the Class Period; and (b) that either (i) resulted in an actual cash value (“ACV”) payment during the Class Period on such Structural Loss Claim from which Nonmaterial Depreciation was withheld, or (ii) for claims where an XactAnalysis Report is available, would have resulted in an ACV payment during the Class Period on such Structural Loss Claim but for the withholding of Nonmaterial Depreciation causing the ACV of the claim to drop below the applicable Deductible.

A Structural Loss means physical damage to a dwelling, building, or other structure located in the States of Arizona, Illinois, Missouri, Ohio, Tennessee, or Wisconsin covered by a Commercial Property Policy issued by the Insurance Company.

A Covered Claim means a first party insurance claim for Structural Loss to a dwelling, building, or other structure located in the States of Arizona, Illinois, Missouri, Ohio, Tennessee, or Wisconsin covered by a Commercial Property Policy issued by the Insurance Company (a) with a date of loss during the Class Period, and (b) that either (i) resulted in an ACV payment during the Class Period on such Structural Loss Claim from which Nonmaterial Depreciation was withheld, or (ii) for claims where an XactAnalysis Report is available, would have resulted in an ACV payment during the Class Period on such Structural Loss Claim but for the withholding of Nonmaterial Depreciation causing the ACV of the claim to drop below the applicable Deductible.

Notwithstanding the foregoing, the term “Covered Claim” specifically excludes the claims set forth in FAQ 7 below.

Nonmaterial Depreciation means, with regard to an insurance claim for Structural Loss, that portion of the Depreciation, if any, related to the non-material components of the Replacement Cost Value (“RCV”) such as labor, removal costs, and overhead and profit. For purposes of clarity, the term Nonmaterial Depreciation specifically excludes depreciation on materials and sales tax.

Class Period means the following time periods:

• For Covered Claims related to a dwelling, building, or other structure located in the States of Arizona, Illinois, Ohio, Tennessee, or Wisconsin, a date of loss from July 21, 2019 through January 14, 2022.
• For Covered Claims related to a dwelling, building, or other structure located in the State of Missouri, a date of loss from December 21, 2012 through December 21, 2022.

Excluded from the Class are:

1. policyholders or other Persons asserting an insurance claim arising under any of the following policy forms issued by the Insurance Company:
   1. “Agriplus Insurance Policy,” form number 0621-024IP or 0621-027IP;
   2. “Farm Insurance Policy,” form number 0621-031IP or 0621-028IP;
   3. “General Packet Policy” (Personal Lines Property System Policy), form number 21224AZ (01-11/21);
   4. “Home Insurance Policy,” form number 0621-038IP or 0621-041P;
   5. any policy with “Amendatory Endorsement – Matching and Actual Cash Value,” form number ABP 10 92 10 21; (vi) any policy with “Amendatory Endorsement – Matching and Actual Cash Value,” form number ABP 10 49 10 21; and/or
   6. any other policy issued or renewed by the Insurance Company that expressly permits the “depreciation” of “labor” (whether within the text of the policy form or in any applicable schedule, endorsement, or rider), including without limitation any policy that expressly provides (whether within the text of the policy form or in any applicable schedule, endorsement, or rider) that the rate of depreciation shall be the same for both labor and materials;
2. policyholders or other Persons who received one or more ACV Payments that exhausted the applicable limits of insurance;
3. policyholders or other Persons whose insurance claim was denied without an ACV Payment, or on which an ACV Payment was not made, for any reason other than that the ACV Payment is not made solely because the withholding of Nonmaterial Depreciation caused the ACV to drop below the Deductible;
4. policyholders or other Persons whose insurance claim was withdrawn or abandoned by the policyholder for any reason without an ACV Payment;
5. policyholders or other Persons whose insurance claim (or any portion thereof) was denied due to lack of coverage;
6. policyholders or other Persons whose insurance claim was only paid on a RCV basis (for purposes of clarity, claims that are only paid on a RCV basis include, without limitation, claims where the Initial Claim Payment plus Deductible is equal to or greater than the Replacement Cost Value and claims on which payments are made pursuant to a contractor’s progress payment schedule);
7. policyholders or other Persons whose insurance claim resulted in no payment because the RCV was less than the Deductible;
8. policyholders or other Persons whose insurance claim has been addressed by a judicial decision issued prior to the Effective Date of Settlement;
9. policyholders or other Persons whose claim is the subject of a prior settlement agreement executed prior to the Effective Date of Settlement;
10. the Insurance Company, the Insurance Company’s affiliates, and their respective employees, officers, and directors;
11. members of the judiciary and their staff to whom this action is assigned and their immediate families; and
12. Class Counsel.

If you are not sure whether you are included in the Class, you may call the toll-free number 1-888-209-4680 with questions.

Class Members who complete and sign a Claim Form and timely mail it to the proper address, or timely complete a Claim Form online on this website, may be eligible for a payment. Under the settlement, Country Mutual has agreed to pay Class Members who timely submit valid Claim Forms as follows: (a) for Covered Claims in Illinois, Ohio, and Tennessee, 100% of the amounts set forth in Sections 7.2 or 7.3 of the Settlement Agreement, (b) for Covered Claims in Arizona and Wisconsin, 80% of the amounts set forth in Sections 7.2 or 7.3, and (c) for Covered Claims in Missouri, 100% of the amounts set forth in Sections 7.4 or 7.5. The calculations for these Settlement Payments are detailed in the Settlement Agreement.

Additionally, Class Members who previously received payments from Country Mutual which, in combination with the applicable deductible, equaled or exceeded the Replacement Cost Value amount, and who timely submit a Claim Form will receive a payment ranging from $22.50 to $500.00, depending on the amount of Nonmaterial Depreciation previously withheld by Country Mutual and released to the Class Member.

You must submit a Claim Form in order to determine whether you are eligible for and the amount of your Settlement Payment. If you do not, you will not receive a Settlement Payment. For additional details on the payment terms, please see the Settlement Agreement, which is available on the Documents page of this website, or call toll free at 1-888-209-4680.

To find out whether you are eligible for a payment, you must complete and sign a Claim Form truthfully, accurately, and completely, to the best of your ability. You must mail the completed Claim Form to the following address, postmarked no later than October 28, 2024.

Jondro Class Settlement
c/o Epiq Class Action & Claims Solutions, Inc.
P.O. Box 4258
Portland, OR 97208-4258

You can complete a Claim Form online on this website, before midnight. Central Daylight Time on October 28, 2024. A copy of the Claim Form was mailed with a notice, if you received one. You may obtain an additional Claim Form by calling the Settlement Administrator at 1-888-209-4680 or visiting the Documents page of this website. If you sign a Claim Form as the representative of a deceased or incapacitated Class Member, you must also submit written proof that you are the legally authorized representative. If you are a contractor to whom an insurance claim was properly assigned by a policyholder, you must submit written proof of the assignment with the filed Claim Form.

If the Court grants Final Approval of the settlement, and if any appeals are resolved in favor of the settlement, then payments will be mailed to eligible Class Members after the claims administration process is completed. This process can take time, so please be patient.

Unless you exclude yourself, you are staying in the Class, and that means you can’t individually sue the Insurance Company and the Released Persons over the claims settled in this case relating to the deduction of Nonmaterial Depreciation from payments for Covered Losses. It also means that all of the Court’s orders will apply to you and legally bind you.

If you submit a Claim Form, or if you do nothing and stay in the Class, you will agree to release all Released Claims against all Released Persons. “Released Claims” and “Released Persons” are defined in the Settlement Agreement, which you can request by calling 1-888-209-4680 or view on the Documents page of this website.

To exclude yourself from the settlement, you must mail a letter saying that you want to be excluded from the Jondro, et al. v. Country Mutual Insurance Company, Case No. 2022-LA-0000228 settlement. Your letter must include your full name, address, and be signed. You must also include a clear statement that you wish to be excluded from the Settlement Class. You must mail your request for exclusion postmarked by August 2, 2024 to:

Jondro Class Settlement
c/o Epiq Class Action & Claims Solutions, Inc.
P.O. Box 4258
Portland, OR 97208-4258

More instructions are in the Settlement Agreement, which is available on the Documents page of this website. You cannot exclude yourself by phone, by email, or on this website. The right to exclude yourself from the proposed settlement must be exercised individually, not as a member of a group and, except for a deceased or incapacitated Class Member, not by another person acting or purporting to act in a representative capacity. If you request exclusion on behalf of a deceased or incapacitated Class Member, you must also submit written proof that you are the legally authorized representative.

No. Unless you exclude yourself, you give up any right to sue the Insurance Company for the claims that this settlement resolves. You must exclude yourself from the Class to individually sue the Insurance Company over the claims resolved by this settlement. Remember, the exclusion deadline is August 2, 2024.

No. If you exclude yourself from the settlement, do not submit a Claim Form to ask for a payment.

The Court appointed the following law firms to represent you and other Class Members as Class Counsel:

Erik D. Peterson ERIK PETERSON LAW OFFICES, PSC 110 W. Vine Street, Suite 300 Lexington, KY 40507  erik@eplo.law	T. Joseph Snodgrass SNODGRASS LAW LLC 100 South Fifth Street, Suite 800 Minneapolis, MN 55402  jsnodgrass@snodgrass-law.com
J. Brandon McWherter MCWHERTER SCOTT & BOBBITT, PLC 109 Westpark Drive, Suite 260 Brentwood, TN 37027  brandon@msb.law	Robert J. Hanauer HANAUER LAW OFFICE, LLC 456 Fulton Street, Suite 200 Peoria, IL 61602  rhanauer@hanauerlaw.com
Douglas J. Winters THE WINTERS LAW GROUP, LLC 7700 Bonhomme Ave., Suite 575 St. Louis, MO 63105  dwinters@winterslg.com

You do not have to pay Class Counsel. If you want to be represented by your own lawyer, and potentially have that lawyer appear in court for you in this case, you may hire one at your own expense.

Class Counsel will ask the Court for up to $1,318,357.20, and will ask the Court to award Class Representatives Nicholas Jondro and Neal Kahre $3,750.00 each and Class Representative Postal Properties - Westport Industrial, LLC $7,500.00 for their efforts in prosecuting this case (called a service award). The Insurance Company agreed not to oppose the request for attorneys’ fees and costs and service awards up to these amounts. The Court may award less than these amounts. The Insurance Company will pay these fees, expenses, and service awards in addition to amounts due to Class Members. These payments will not reduce the amount distributed to Class Members. The Insurance Company will also separately pay the costs to administer the settlement.

If you don’t want the Court to approve the settlement you must file a written objection with the Court and send a copy to the Settlement Administrator, Defendant’s Counsel, and Class Counsel by the deadline noted below. You should include the name of the case (Jondro, et al. v. Country Mutual Insurance Company, Case No. 2022-LA-0000228), your full name, address, signature, the specific reasons why you object to the settlement, and state whether you intend to appear at the Final Approval Hearing in person or through counsel. If you have a lawyer file an objection for you, he or she must follow all local rules and you must list the attorney’s name, address, and telephone number in the written objection filed with the Court.

If you intend to appear at the Final Approval Hearing to object to the settlement, you must also provide with your written objection a detailed statement of the specific legal and factual reasons for each objection, a list of any witnesses you may call at the hearing with each witness’s address and summary of the witness’s testimony, and a description of any documents you may present to the Court at the hearing. You or your lawyer may appear at the Final Approval Hearing if you have filed a written objection as provided above. (See FAQ 20). The right to object to the Proposed Settlement must be exercised individually by an individual Class Member, not as a member of a group and, except in the case of a deceased or incapacitated Class Member, not by another person acting or purporting to act in a representative capacity. If you file an objection as the representative of a Class Member, you must also submit written proof that you are the legally authorized representative.

File the objection with the Clerk of the Court at the address below by August 2, 2024 (Note: You may send it by mail, but it must be received and filed by the Clerk by this date):

Circuit Clerk
Peoria County Courthouse
324 Main Street, Rm. G-22
Peoria, IL 61602

AND

Mail a copy of the objection to the Administrator, Defendant’s Counsel, and Class Counsel so that it is postmarked by August 2, 2024.

Objecting is simply telling the Court that you don’t like something about the settlement. You can object only if you stay in the Class. Excluding yourself is telling the Court that you don’t want to be part of the Class or the settlement. If you exclude yourself, you have no basis to object because the case no longer affects you. If you object, and the Court approves the settlement anyway, you will still be legally bound by the result.

The Court has scheduled a Final Approval Hearing on September 12, 2024, at 2:00 p.m. at the Peoria County Courthouse, 324 Main Street, Courtroom 213, Peoria, Illinois 61602. At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them at that time. The Court may listen to people who have asked to speak about their objection. The Court may also decide how much to award Class Counsel for fees and expenses for representing the Class and how much to award each Class Representative as a service award. At or after the hearing, the Court will decide whether to approve the settlement. It is not known how long this decision will take. Check the Home page of this website to make sure the hearing hasn’t been rescheduled, and to see whether the Court has scheduled the hearing to proceed by video conference or teleconference only, instead of in person.

You are not required to attend, and Class Counsel will answer any questions that the Court may have. If you wish to attend the hearing, you may come at your own expense. You may also pay your own lawyer to attend, but it’s not necessary, unless you choose to have a lawyer appear on your behalf to object to the settlement.

If you submitted a proper written objection to the settlement, you or your lawyer acting on your behalf may speak at the Final Approval Hearing. You cannot speak at the Hearing if you exclude yourself.

If you do nothing, you’ll get no payment from this settlement. But, unless you exclude yourself from the settlement, you won’t be able to individually sue for the claims resolved in this case.

This website summarizes the proposed settlement. More details are in the Settlement Agreement. If you have questions or if you want to request a copy of the Settlement Agreement, which provides more information, call 1-888-209-4680 or view a copy on the Documents page of this website.

PLEASE DO NOT CALL OR WRITE THE COURT, THE JUDGE OR HIS STAFF, OR THE INSURANCE COMPANY OR ITS COUNSEL FOR INFORMATION OR ADVICE ABOUT THE SETTLEMENT.