The Western District of Texas certified a class of Texas policyholders challenging Allstate’s practice of withholding “non-material depreciation” from actual cash value (ACV) payments on property claims. The class includes insureds whose payments were reduced, or fell below the deductible, due to depreciation applied to non-material labor costs. Allstate argued certain plaintiffs lacked standing because they were later paid through interest or appraisal. The court rejected that argument, holding that plaintiffs suffered a concrete injury at the time of the initial underpayment, and later payments do not eliminate that injury. The court found Rule 23 requirements satisfied, concluding that the central issue, whether depreciating non-material costs violates the policy, is common and suitable for class resolution.
