HomeMy WebLinkAbout20141014_4500.pdfDECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
FROM: DON HOWELL
DEPUTY ATTORNEY GENERAL
DATE: OCTOBER 10, 2014
SUBJECT: SETTLEMENT OF CLASS ACTION LAWSUIT – CDA DAIRY QUEEN V.
IDAHO STATE INSURANCE FUND, CASE NO. CV-09-13607-C
The Commission is a member of a class action lawsuit against the Idaho State
Insurance Fund (SIF). The Commission is a class member because it purchased workers’
compensation insurance from the SIF. During the years 2002 through 2009, the SIF did not
distribute pro rata refunds to policyholders who had been billed annual premiums of less than
$2,500. The class action was filed in December 2009 seeking damages/refunds for those
policyholders with premiums of less than $2,500. The suit generally alleged that denying annual
refunds to some policyholders, resulted in other policyholders receiving more annual refunds
than they were entitled to during the seven-year period.
In September 2014, the representative plaintiffs (Dairy Queen and the Discovery Care
Center of Salmon) and the SIF entered into a settlement agreement. The proposed settlement
provides that adversely affected class members will receive a pro rata portion of the damages
based upon a complex formula. Under the terms of the settlement, no class member will be
required to refund any overpayment to the SIF. Objections to the proposed settlement are due no
later than November 20, 2014. The Court has scheduled a hearing to review the settlement and
any objections on December 18, 2014.
COMMISSION DECISION
Does the Commission consent to the proposed settlement?
Don Howell
Don Howell
Deputy Attorney General
bls/M:SIF_Class Action_dh_Decision Memo