Jacobsen v. Allstate Ins. Co., DA 12-0130:

• Decision Date: 29 August 2013
• Docket Number: No. DA 12-0130:,DA 12-0130:
• Citation: 2013 MT 244
• Parties: ROBERT JACOBSEN, and all others similarly situated, Plaintiff and Appellee, v. ALLSTATE INSURANCE COMPANY, Defendant and Appellant.
• Court: Montana Supreme Court

2013 MT 244

ROBERT JACOBSEN, and all others similarly situated, Plaintiff and Appellee, v. ALLSTATE INSURANCE COMPANY, Defendant and Appellant.¹

No. DA 12-0130:

Supreme Court of Montana

Dated: August 29, 2013

SYNOPSIS OF THE CASE

A split Montana Supreme Court decided that the District Court correctly certified a class action comprised of Allstate insurance policy holders whose claims were adjusted according to a process known as the "Casualty CCPR." However, the Supreme Court also decided that the District Court's certification of class-wide punitive damages violated Allstate's right to due process and modified the class relief available at trial.

Plaintiff Robert Jacobsen suffered bodily injuries and property damage in an automobile collision with an Allstate insured in 2001. Allstate admitted liability and negotiated a settlement with Jacobsen, who did not have a lawyer, for $3,500 using the "Casualty CCPR" process. Jacobsen began to experience significant pain and retained counsel, who persuaded Allstate to re-open Jacobsen's claim and settle for $200,000.

Thereafter, Jacobsen sued Allstate, including for alleged violations of Montana's Unfair Trade Practices Act (UTPA). A jury returned a verdict in 2006, finding that Allstate had violated the UTPA and awarded damages to Jacobsen.

Both Allstate and Jacobsen appealed several of the District Court's rulings. We resolved these appeals in a 2009 opinion and remanded the case for a new trial. Jacobsen then amended his complaint to include new class action claims. The class action claims asserted that the "Casualty CCPR" violated the UTPA. Jacobsen sought an injunction, a declaration that the "Casualty CCPR" was unlawful, and class-wide punitive damages.

The District Court certified Jacobsen's proposed class, applying the U.S. Supreme Court's standards from its 2011 opinion in Wal-Mart Stores, Inc. v. Dukes. Allstate appealed, arguing that the certified class did not meet the requirements of Montana's class action statutes and that the District Court had improperly determined that the Montana Rules of Evidence did not apply to class certification proceedings.

In this case, the Montana Supreme Court affirmed the District Court's conclusion that Jacobsen's proposed class met the requirements of Montana law. The Supreme Court applied the reasoning of the Wal-Mart opinion but declined to decide whether itwas conclusively adopting the U.S. Supreme Court's analysis for use in future class action cases.

The Supreme Court did modify the class relief available on remand, however. The Supreme Court specifically reversed the certification of class-wide punitive damages based on its conclusion that such an award would...