PITTSBURGH – A subscriber in a reciprocal insurance exchange alleges she was charged excessive fees and has filed a class action suit.
Lynda Ritz filed a complaint on behalf of herself and all others similarly situated on Dec. 28, 2017, in the U.S. District Court for the Western District of Pennsylvania against Erie Indemnity Co., Erie Insurance Exchange, et al. alleging breach of fiduciary duty and other counts.
According to the complaint, the plaintiff has been a subscriber in the defendants' exchange since 2000. She alleges the defendants charge unwarranted and excessive management fees in violation of the subscriber's agreement. She alleges the defendants have operated with "hopelessly conflicted interests" and "abused their position of power" to benefit themselves as the expense of the exchange and subscribers, the suit states.
The plaintiff requests a trial by jury and seeks enjoin the defendants, compensatory and punitive damages, interest, court costs and any further relief the court grants. She is represented by Joseph H. Meltzer, Peter A. Muhic and Robin Winchester of Kessler Topaz Meltzer & Check LLP in Radnor and William M. Radcliffe of Radcliffe & Dehaas LLP in Uniontown.
U.S. District Court for the Western District of Pennsylvania case number 1:17-cv-00340-CRE