Cases & Deals

Directors of Erie Indemnity Company prevail in Third Circuit against class-action and derivative lawsuit claims of improper service charges levied upon policyholders

Clients Directors of Erie Indemnity Company

Jones Day successfully represented the directors of Erie Indemnity Company, a large automobile, property, and casualty insurer, in a class action alleging breach of fiduciary duties by allowing the company to collect some $400 million in allegedly improper service charges from policyholders beginning in the late 1990s. The plaintiffs brought their claims both derivatively and on behalf of a class of policyholders. The Western District of Pennsylvania federal court dismissed the complaint, concluding that most of the claims were untimely, and that the service charges were not improper. The plaintiffs appealed the dismissal to the United States Court of Appeals for the Third Circuit. On May 10, 2018, the Third Circuit rejected the Plaintiffs’ arguments and affirmed the dismissal, resulting in a total victory for the directors of Erie Indemnity Company.

Beltz v. Erie Indemnity Company, et al., No. 1:16-cv-179 (W.D. Pa.); Patricia Beltz et al. v. Erie Indemnity Co., et al., No. 17-2774 (3rd Cir. May 10, 2018)

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