Whitney Brakken Feb. 24, 2014, 10:34am


A Philadelphia couple has filed a class action lawsuit over claims they are owed underinsured benefits.


Terry Easterday and Linda Easterday, individually and on behalf of a class of similarly situated persons, filed a lawsuit Feb. 11 in the Philadelphia County Court of Common Pleas against The Federated Mutual Insurance Co., citing breach of contract and violation of the Pennsylvania Bad Faith Statute.

The complaint states that on May 3, 2010, and Aug. 18, 2011, Terry Easterday was involved in motor vehicle collisions with underinsured drivers and was driving a vehicle insured by the defendant at the time of the accident. After making claims and receiving payments from the other drivers' insurance companies, the plaintiffs sought underinsured coverage from the defendant, according to the complaint. The complaint says the defendant failed to pay underinsured motorist benefits to the plaintiffs, saying they waived underinsured motorist coverage under a "rejection of underinsured motorist coverage" clause.

The plaintiffs claim the rejection of underinsured motorist coverage form does not specifically comply with the requirements of the Pennsylvania Motor Vehicle Financial Responsibility law, and therefore the defendant is required to pay uninsured/underinsured motorist benefits due under certain automobile policies.

The plaintiffs are seeking declaratory relief and damages, including punitive damages, costs and fees. They are being represented by James C. Haggerty of Haggerty, Goldberg, Schleifer & Kupersmith PC and James D. Hagelgans of Hagelgans & Veronis LLP.

Philadelphia County Court of Common Pleas Case ID. 140201215.

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