11th Circ. Puts Brakes On $5M Geico Auto Repair Suit

Law360, Los Angeles (April 23, 2013, 8:38 PM EDT) -- The Eleventh Circuit on Tuesday tossed a $5 million class action lawsuit filed by a Florida resident claiming Geico cheated customers by deducting its payments to auto policyholders when repairs increase the value of their vehicle, ruling that the company's policy clearly allows for such adjustments.

The appellate court decided that Geico's policy contains unambiguous language allowing so-called "betterment adjustments," rejecting Eric O. Silvin's claim that Geico deliberately used unclear language in its policy, which suggests that it can apply a betterment charge only when paying...
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