Strickland, et al., v. Carrington Mortgage Services, LLC, et al.
Strickland LPI Settlement
1:16-cv-25237-JG

FAQs

 

Expand/Collapse All
  •  

     

  • Notice was mailed to individuals who had a residential insurance policy lapse, who had hazard, flood, flood-gap, or wind lender-placed insurance policy ("LPI Policy") issued for a residential property, and were charged by Carrington, as the mortgage servicer, for the LPI Policy between December 1, 2012 and August 9, 2017 ("Class Period").

    The Court ordered the Notice to be sent to Class Members because these individuals have a right to know about the proposed Settlement of this class action lawsuit, which concerns LPI issued by AMIG Defendants and/or SWBC to Carrington, and about their options, before the Court decided to approve the Settlement.

    The Court granted final approval of the Strickland LPI Settlement and entered final judgment on January 26, 2018. Pursuant to the Settlement Agreement, cash payments will be mailed to eligible Class Members in September 2018.

  • This Notice is part of a package sent to all potential Carrington Settlement Class Members. The package includes the Notice, the Instructions for the Claim Form, and the Claim Form. This package explains the lawsuit, the Settlement, Class Members' legal rights, what benefits are available, who is eligible for them, and how to get them. You may download the entire Notice package on the Important Documents page.

    The Court in charge of the case is the United States District Court for the Southern District of Florida, and the case is called Strickland, et al., v. Carrington Mortgage Services, LLC, et al., Case No. 1:16-cv-25237-JG.

    Plaintiffs Robert Strickland, Nicole Masters, and Pedro Santos sued on behalf of all Carrington Settlement Class Members and are called the “Settling Plaintiffs.” They sued Carrington, AMIG Defendants, and SWBC (called the “Defendants”).

  • This lawsuit involves lender-placed insurance (“LPI”), which is insurance (hazard, flood, flood gap, or wind only) that is placed on a borrower’s property to protect the borrower and mortgage lender when the borrower’s insurance policy lapses, or when the borrower does not maintain a homeowner’s insurance policy that is acceptable to the mortgage lender. When an LPI Policy is placed pursuant to the borrower’s mortgage contract, Carrington pays premiums to the LPI insurer that issues the policy, in this case, one of the AMIG Defendants and/or SWBC, and then Carrington charges borrowers for those premiums.

    Settling Plaintiffs brought claims on behalf of all persons in the Carrington Settlement Class (as defined in FAQ #5). Settling Plaintiffs allege that when a borrower was required to have insurance for his or her property pursuant to a residential mortgage or home equity loan or line of credit, and evidence of acceptable coverage was not provided (for example, when the insurance policy did not exist or had lapsed), Carrington would place insurance in a manner such that Carrington allegedly received an unauthorized benefit. Settling Plaintiffs allege further that Carrington did so primarily to receive “kickbacks” or other consideration from AMIG Defendants and/or SWBC. Settling Plaintiffs also allege that the way in which LPI policies were obtained and placed caused the charges to borrowers attributed to premiums and the amount of coverage to be excessive.

    Carrington, AMIG Defendants, and SWBC expressly deny Settling Plaintiffs’ allegations and assert their actions were and are fully authorized under the mortgage instruments and by law. They also expressly deny that they did anything wrong. There has been no court decision on the merits of this case and no finding that Carrington, AMIG Defendants, or SWBC committed any wrongdoing.

     

  • Both sides have agreed to a Settlement to avoid the cost and risk of a trial and so that borrowers can get benefits in exchange for releasing Carrington, AMIG Defendants, and SWBC from liability.

  • To see if you will be affected by this class action, you first have to determine if you are a member of the Carrington Settlement Class.  The "Carrington Settlement Class" includes:

    • All borrowers in the United States who, from December 1, 2012 to August 9, 2017 (“Settlement Class Period”), inclusive of those dates, were charged by Carrington for a hazard, flood, flood-gap, or wind-only LPI Policy for Residential Property issued by AMIG Defendants and procured by SWBC during the Settlement Class Period and who either (i) paid to Carrington all or part of the Net Premium for that LPI Policy, or (ii) were charged but did not pay and still owe to Carrington the Net Premium for that LPI Policy.

    Excluded from the Carrington Settlement Class are:

    • (i) individuals who are or were during the Settlement Class Period officers or directors of Carrington, AMIG Defendants, or SWBC, or of their respective Affiliates; (ii) any justice, judge, or magistrate judge of the United States or of any State, their spouses, and persons within the third degree of relationship to any of them, or the spouses of such persons; (iii) borrowers who only had an LPI Policy that was cancelled in its entirety such that any premiums charged and/or collected were fully refunded or credited to the borrower or the borrower’s escrow account; and (iv) all borrowers who file a timely and proper request to be excluded from the Carrington Settlement Class.


    The Settlement Class Period begins on December 1, 2012 and continues through and including August 9, 2017.

    LPI Policy means one or more certificates for lender-placed insurance issued by one of the AMIG Defendants and procured by SWBC applicable to a borrower’s Residential Property, and placed pursuant to a mortgage loan agreement, home equity loan agreement, or home equity line of credit serviced by Carrington to cover a borrower’s failure to maintain the required insurance coverage on the residential property securing the loan.

  • If you did not submit a valid claim form, you will not be eligible for a payment from this Settlement. 

  • Defendants have agreed to pay a cash award in the amount of 10.5% of the Net Premium charged by Carrington to the claimant during the Class Period for the LPI Policy, provided each Carrington Settlement Class Member timely submits a valid and properly completed Claim Form, and either paid a part of or still owes the premium to Carrington. Each Carrington Settlement Class Member must have submitted a Claim Form to be eligible to receive a payment.

    Defendants also have agreed to injunctive relief from which you may benefit. The Settlement benefits are described in more detail in the Settlement Agreement, which is available on the Important Documents page.

    This Settlement will not affect any rights or claims that you may have under any settlement between Defendants and any governmental entity. This Settlement also will not affect any claim for benefits on your LPI Policy that you have made or may make in the future for property damage or loss to your residence. However, as described in FAQ #11, this Settlement will affect all claims that you may have relating to Defendants’ acts, omissions, policies, or practices concerning LPI Policies issued to Carrington and charges by Carrington for LPI Policies during the Class Period.

  • To receive a cash award, you must be a Carrington Settlement Class Member and must have sent in a properly completed and accurate Claim Form by U.S. Mail, postmarked by March 28, 2018 (“Claim Deadline”) or, if a private mail carrier was used, a label reflecting a sending date no later than the Claim Deadline. You also could have submitted a completed Claim Form by uploading it on the Online Claim Filing page, or submitting a completed Claim Form online, no later than midnight Eastern Standard Time on the Claim Deadline.

    The Claim Form Instructions and a Claim Form were mailed to Class Members with the Notice. If your Claim Form was not properly completed or not timely submitted, you will not be paid.

  • Carrington Settlement Class Members are eligible for a cash award of 10.5% of the Net Premium charged by Carrington for an LPI Policy issued by one of the AMIG Defendants and/or SWBC during the Class Period, if you either paid all, or a part of, or still owe Carrington a premium for the LPI Policy.  The Net Premium is the amount of the LPI premium charged less any refunds already provided to the borrower.

  • The Court held a hearing on January 22, 2018 to determine whether to approve the Settlement, and entered final judgment on January 26, 2018. Pursuant to the Settlement Agreement, cash payments will be mailed to eligible Class Members in September 2018.  Please be patient. 

  • If you are a Carrington Settlement Class Member and unless you excluded yourself, you will remain in the Carrington Settlement Class. That means you cannot sue, continue to sue, or be part of any other lawsuit against Defendants about LPI or the issues that were or could have been raised in this case. It also means that all of the Court’s orders concerning the Carrington Settlement Class will apply to you and legally bind you, including the Releases described in detail in Section 10 of the Settlement Agreement, which is available on the Important Documents page. The Releases describe the legal claims that you gave up when this Settlement was approved if you did not exclude yourself. Please carefully read the Releases in the Settlement Agreement.

  • If you did nothing as a Carrington Settlement Class Member, you’ll receive no money from this Settlement. But, unless you excluded yourself from the Settlement, you will not be able to start a lawsuit or continue with a lawsuit against Defendants about the legal issues that were or could have been raised in this case, ever again.

  • If you are within the definition of the Carrington Settlement Class (see FAQ #5), you are automatically a member of the Carrington Settlement Class. However, you had the option to exclude yourself, or “opt out” of the Carrington Settlement Class, if you did not wish to participate. This means you will receive no payment as part of this Settlement nor any of the Settlement benefits.

    You cannot ask to be excluded over the phone or on the internet. To exclude yourself, you must have mailed a written request for exclusion to the Settlement Administrator that included: (1) the case name and number; (2) your name and your address; (3) your original signature; and (4) a statement requesting exclusion from the proposed Settlement, such as “I hereby request that I be excluded from the proposed Carrington Settlement Class in the Strickland Class Action.” Your written Request for Exclusion must have been postmarked no later than December 13, 2017, and mailed to StricklandLPISettlement, P.O. Box 6878, Broomfield, CO 80021. You cannot “opt out” of the Settlement on behalf of other members of the Carrington Settlement Class.

  • Any member of the Carrington Settlement Class who did not opt out of the Settlement in the manner and by the deadline described above will be part of the Carrington Settlement Class, will be bound by all Orders and proceedings in this action, and will give up the right to sue any of the Defendants for the claims that this Settlement resolves. If you wanted to opt out, you needed to take timely affirmative written action even if you have filed a separate action against any of the Defendants or are a putative class member in any other class action filed against any of the Defendants. If you have a pending lawsuit, please contact your lawyer in that lawsuit immediately. The exclusion deadline was December 13, 2017.

  • No. If you are a Carrington Settlement Class Member and excluded yourself, do not send in a Claim Form to ask for any money. But, you may sue or continue to sue Defendants individually, or you may be part of a different lawsuit against Defendants.

  • You had the option to object to or comment on all or part of the proposed Settlement if you were a Carrington Settlement Class Member and did not opt out of the Settlement.

    Your objection must have been filed with the Clerk of Court, with copies mailed to counsel for all of the parties, postmarked no later than December 13, 2017:

  • The Court appointed the following lawyers to represent you and all other Carrington Settlement Class Members. Together, these lawyers are called Class Counsel. You will not be charged any money to pay for these lawyers.

     

    Adam M. Moskowitz
    amm@kttlaw.com
    Kozyak Tropin & Throckmorton, LLP
    2525 Ponce de Leon Blvd., 9th Floor
    Coral Gables, Florida 33134
    Telephone: (305) 372-1800
    Facsimile: (305) 372-3508

    Aaron S. Podhurst
    apodhurst@podhurst.com
    Podhurst Orseck, P.A.
    SunTrust International Center
    One SE 3rd Ave., Suite 2700
    Miami, Florida 33131
    Telephone: (305) 358-2800
    Facsimile: (305) 358-2382

    Lance A. Harke
    lharke@harkeclasby.com
    Harke Clasby & Bushman LLP
    9699 NE Second Ave.
    Miami Shores, FL 33138
    Telephone: (305) 536-8220
    Facsimile: (305) 536-8229

  • Class Counsel will ask the Court for attorneys’ fees and expenses up to $1,175,953, and a case contribution awards of $5,000 each paid to Settling Plaintiffs Robert Strickland and Nicole Masters, jointly, and Pedro Santos, individually, for their time and effort in the matter. The Court may award less than these amounts.

    Defendants will separately pay attorneys’ fees and expenses and case contribution awards that the Court awards, up to maximums of $1,175,953 in attorneys’ fees and expenses and case contribution awards of $5,000 to Settling Plaintiff Pedro Santos and $5,000 jointly to Settling Plaintiffs Robert Strickland and Nicole Masters. These payments will not reduce the amount of any cash awards to Carrington Settlement Class Members. Defendants have agreed not to oppose the applications by Class Counsel for attorneys’ fees and expenses or the case contribution awards to Settling Plaintiffs that do not exceed those amounts.

  • The Court held a hearing about the Settlement at 9:30 a.m. on January 22, 2018, in the United States Courthouse located at 99 NE 4th Street, Eleventh Floor, Courtroom Number 11-3, in Miami, Florida. At this hearing, the Court considered whether the Settlement is fair, reasonable, and adequate, and Class Counsel’s applications for attorneys’ fees and expenses and case contribution awards to the Settling Plaintiffs. The Court considered any timely and valid objections. 

    After the hearing, the Court granted final approval of the Strickland LPI Settlement and entered final judgment on January 26, 2018. 

  •  If you are a member of the Carrington Settlement Class, you had the option to ask the Court for permission for you or your attorney to speak at the hearing. The notice of intention to appear must have been filed with the Clerk of Court and served on all counsel no later than December 13, 2017. 

  • This notice summarizes the lawsuit and Settlement. More details are in the Settlement Agreement, which is available on the Important Documents page. You may also contact Class Counsel, identified in FAQ #17 above.

    In addition, you may search this website to find answers to common questions about the Settlement, and other information to help you determine whether you are eligible for a payment from this Settlement.

    PLEASE DO NOT CALL OR WRITE THE COURT, THE JUDGE OR HIS STAFF, OR DEFENDANTS OR THEIR COUNSEL FOR INFORMATION OR ADVICE ABOUT THE SETTLEMENT

  • If you would like to update your name, you must mail a written name change request to the Settlement Administrator at the below address, along with proof of your name change. Valid proof of name change includes, but is not limited to, a copy of a marriage license, divorce decree, or court order.

    StricklandLPISettlement
    PO Box 6878
    Broomfield, CO 80021

  • Notice of the settlement was mailed to all potential members of this class action settlement.  However, any borrower who had an LPI Policy that was cancelled in its entirety such that all premiums charged and/or collected were fully refunded or credited to the borrower or the borrower's escrow account are excluded from this settlement and not entitled to any payment.  So, even if you received notice of this settlement, if all of your LPI charges were refunded or credited, you are not part of this class action settlement and are not entitled to any payment.

For More Information

Visit this website often to get the most up-to-date information.

Mail

StricklandLPISettlement
PO Box 6878
Broomfield, CO 80021