top of page
Kelley vs. State Farm Mutual Automobile Insurance Company
&
Jama v. State Farm Fire and Casualty Insurance Company
 
Notice and Litigation Information Page
View of Seattle Day Light Winter skyline, WA, USA.jpg

This website is provided as part of the Notice of Certification of two Classes (“Kelley v. State Farm Mutual” and “Jama v. State Farm F&C”) of State Farm insureds for certain claims involving the payment of total loss claims against two State Farm insurers ordered by the United States District Court for the Western District of Washington (at Seattle). 

 

Notice is provided by the Court under Federal Rule of Civil Procedure 23 to allow those who are likely to be part of the certified Class (and as such have been mailed the Court-Ordered Notices in both cases  [See copies of the Kelley here and Jama notices here]) to have access to key documents in the case, as part of the Court Ordered “opt-out” right, as well to provide a place for the posting of any later updates.  The notice you received, describes the litigation and your right to opt-out. 

​

Updates of any major decisions in this litigation will be posed under the "Recent Developments" tab below as they occur.  All actions in the case can be found by reviewing the Court’s electronic docket.

​

Both cases are currently set for trial on June 8, 2022 at the United States District Court for the Western District of Washington, 700 Stewart St., Seattle, WA 98101.  The cases have been consolidated for trial and will be tried together by Court Appointed Class Counsel.

 

The Court-Ordered Opt-out deadline is January 24, 2022.  Please review the Notice carefully regarding your right to opt-out should you so choose.  The Court-Ordered notice will indicate at the top if you are a member of the Kelley Class (as you were insured by State Farm Mutual Insurance Company) or the Jama Class (as you were insured by State Farm Fire and Casualty Insurance Company).

What is this case about?

As described in the Court Ordered Notices, both the Kelley and Jama case challenge State Farm having taken a deduction for “Typical Negotiation Adjustment” when paying total loss claims of its own insureds using “Autosource” total loss valuations reports.  Kelley involves insureds of State Farm Mutual Automobile Insurance Company (“State Farm Mutual”).  Jama involves insureds of a smaller State Farm insurer, State Farm Fire and Casualty Insurance Company (“State Farm F&C”).  Jama, also challenges the taking of an allegedly non-compliant “Condition Deduction” on certain “Autosource” valuation reports.  State Farm denies Plaintiffs' claims.

​

Both parties’ arguments and further information on the issues, and the United States District Court’s rulings on those arguments, are found in the parties’ Pleadings which are located in the links below.

 

Both cases were certified by the United States District Court as Class Actions on July 1, 2021. You can read the District Court’s Certification Orders in Kelley here, and Jama here. 

About
Court Documents
What information can I find on this website?

The Parties' current Complaints (which describes the claims and relief sought) and State Farm’s Answer (either admitting or denying Complaint) are available for you to review:

After denial of State Farm Mutual and State Farm F&C’s Motions to Dismiss, Plaintiffs in both cases moved for Class Certification.   Copies of Plaintiffs’ briefs are available for you to review:

Once the Complaints were filed, State Farm Moved to Dismiss the Complaints claiming that neither the Kelley or Jama Plaintiffs had stated legal claims.  The United States District Court substantially rejected State Farm’s Motions. The District Court’s Order is available for you to review:

State Farm’s Oppositions are available for you to review here:

Plaintiffs’ Reply submissions are available for you to review here:

How do I "opt-out"?

How do I “opt-out” (i.e., exclude myself) and receive no benefits from any recovery but maintain my right to sue State Farm individually for the claims at issue?

 

As explained in the Notice, if you wish to “opt-out”, you can:
 

  •  Mail an “Exclusion requests” post marked by January 24, 2022 to State Farm Exclusions P.O. Box at 2661 N Pearl Street, PMB#434, Tacoma, WA 98407 
     

  • E-mail an “exclusion request” no later than January 24, 2022 to statefarmexclusion@statefarmtotallosslitigation.com
     

As described in point 7 of the Notice, the letter or email must expressly state that you want to be excluded from either Kelley v. State Farm Mutual or Jama v. State Farm F&C, listing the case name, and you must also include your name and address, and date and sign the letter.  A template opt-out is available here.

Opt-Out
Recent Developments
What has happened recently in the litigation?

Updated 09.24.2024

​​

Plaintiff challenged State Farm’s use of a hidden deduction for “typical negotiation amount” on total loss reports prepared by Autosource, to reduce their payments on total loss claims in Washington State.  Plaintiffs’ contention that this deduction was not permitted by Washington Administrative Code 284-30-391 was found to be correct by the District Court in denying State Farm Mutual Auto Insurance Companies’ motion to dismiss (Ngethpharat and Kelley v. State Farm Mut. Auto. Ins. Co., 499 F.Supp.3d 908 (W.D. Wa 2020) and then in certifying a Class of those who had the deduction taken from their total loss settlements.  Ngethpharat & Kelley v. State Farm Mut. Auto Ins. Co., 339 F.R.D. 154 (W.D. Wa 2021).  Plaintiff James Kelley was appointed to represent the Class Members.

 

Notice was then sent out to members of the certified Class, and the parties prepared for trial.  

 

Based upon an intervening opinion by the 9th Circuit Court of Appeals, the District Court then granted State Farm Mutual’s motion to decertify the Class in 2022.  Ngethpharat & Kelley v. State Farm Mut. Auto. Ins. Co., 2022 WL 1404526 (W.D. Wa 5/4/2022).   Mr. Kelley and the Class appealed that ruling, and the matter was briefed and argued to the United States Court of Appeals for the 9th Circuit in 2023.

 

On August 19, 2024 the 9th Circuit reversed the decertification of the Kelley Class, and reversed the dismissal of their claims. The 9th Circuit, Jama & Kelley v. State Farm Mut. Auto Ins. Co., 113 F.4th 924 (9th Cir 2024), found that the legal theories and evidence presented by Plaintiffs as to the amount of harm, was sufficient to support the claims at issue, and reversed the District Court. A copy of the 9th Circuits Opinion is available here.

 

State Farm requested an extension to move to have the matter reheard. 

 

Further updates will be provided as developments occur in the case.

Updated  06.13.23

​

Both the Kelley and Jama matters are on appeal before the 9th Circuit Court of Appeals.  After comprehensive briefing of the issues, the 9th Circuit panel which will decide the issues heard oral argument on June 12, 2023.   The argument can be viewed below:

 

A decision from the 9th Circuit can occur as quickly as 1-2 months but can also take as long as 6-9 months, depending upon the case.   It is also possible that certain issues in the case will be sent for decision by the Washington Supreme Court, which would further stretch out the time for a decision.  An update will be posted when the 9th Circuit has ruled.

Updated  02.17.23
 

The matter is currently on appeal to the United States Court of Appeals for the Ninth Circuit.   Jama v. State Farm Mut. Auto Ins. Co., No.  22-35449.

 

It is anticipated that Oral Argument will be held during the week of June 12-16, 2023, with a decision being then likely issued in the fall of 2023.

The parties are preparing for trial on June 8, 2022.  

 

 We anticipate that the Court will address motions for summary judgment after January 24, 2022.   We will post an update should this occur.

Contact
What if I have further questions?

​

  • If you are a member of the Jama Class, you can

bottom of page