TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Wednesday, January 12, 2011

7th Circuit Nixes DePaul Law Prof's Lawsuit Against Geico Over Car Repairs

Geico Courthouse News Service, Court Nixes Class Action on Geico Insurance Fraud:

The 7th Circuit dismissed a man's prospective class action, accusing Geico of omitting necessary repairs from its collision-damage estimates, because the plaintiff had donated his car to charity after the crash without performing repairs.

Steven Greenberger, a professor at DePaul University College of Law, was involved in a crash in 2002 that damaged the bumper, steering box, suspension and lower body of his 1994 Acura.

Geico evaluated the damages and wrote Greenberger a check for $3,284.69. A body shop later estimated that the car would cost $4,938.65 to repair, about $1,150 more than Geico estimated.

Greenberger deposited Geico's check and donated the car to charity without making any repairs. He then accused Geico of "systematically [omitting] necessary repairs from its collision-damage estimates in violation of the promise to restore the policyholder's vehicle to its preloss condition." An Illinois federal court entered summary judgment for Geico, and the 7th Circuit upheld the ruling on Monday.

According to his DePaul faculty webpage, Steven is Associate Dean of Faculty at DePaul and teaches Civil Procedure and Complex Civil Litigation. Prior to joining the DePaul faculty, he was as a corporate litigator with Irell & Manella (Los Angeles).

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What's good for Warren Buffett is good for the country.

Posted by: Bob | Jan 12, 2011 5:40:53 AM

And yes, another reason why the legal system is too important to in the hands of lawyers and law professors.

Posted by: Sid | Jan 12, 2011 6:56:15 AM

Given the embarassment of having wrecked his own case by giving away the evidence, I'm surprised he thought the extra embarassment of being in the news again on appeal was worth the tiny probability of winning there.

Posted by: Eric Rasmusen | Jan 12, 2011 9:27:41 AM