Lucero v Nationwide Settlement

A class action is a lawsuit in which one or more individuals bring claims on behalf of other persons or entities. These persons or entities are referred to as a class or class members. In a certified class action, the Court resolves certain issues, legal claims, and/or defenses for all class members in a single action, except for those persons or entities who ask in writing to be excluded from the class.

Plaintiff alleges that Nationwide Mutual Insurance Company, Nationwide Property and Casualty Insurance Company, Nationwide General Insurance Company, Nationwide Insurance Company of America, Nationwide Assurance Company, Nationwide Mutual Fire Insurance Company, Titan Indemnity Company, and Victoria Fire and Casualty Company (collectively referred to as “Nationwide”) breached their automobile insurance policy contracts, were negligent, unjustly enriched, breached the duty of good faith and fair dealing, and violated New Mexico’s Unfair Trade Practices Act by failing to properly advise Plaintiff and other New Mexico insureds that any amounts payable on an underinsured motorist claim are required by law to be reduced, or “offset”, by amounts the insured received from the insurer of the driver who was at fault for the auto accident. Defendants maintain they complied with the terms of the automobile insurance policies and applicable law and deny they acted wrongfully or unlawfully and continue to deny all material allegations.

As a part of the Settlement, the Nationwide Defendants have agreed, upon Court approval, to pay $2,650,000.00 into a Settlement Fund that will accomplish the following:

1. Pay timely, valid claims submitted by Settlement Class Members who had an underinsured motorist claim reduced or “offset” by the amount paid by the at-fault driver in an accident between October 1, 2010, and March 31, 2022. These persons are referred to as “Offset Subclass Members.” Offset Subclass Members who submit a timely, valid claim will receive $25,000.00 for the claim. The total amount of the Settlement Fund to be made available for Offset Subclass Payments shall be $890,000.00. If the number of valid Offset Subclass claims exceeds $890,000.00, Offset Subclass Payments will be reduced pro rata;
2. Pay all other Settlement Class Members who purchased UM/UIM motorist coverage between October 1, 2010, and March 31, 2022, a partial premium refund. The amount of the refund will be determined by the amount the Settlement Class Member paid in UM/UIM premiums during the Class Period, the cost of administering the Settlement Fund, the amount approved by the Court to pay Plaintiff’s attorneys’ fees, costs, and Incentive Compensation to the Plaintiff, and the amount remaining, if any, of the portion of the Settlement Fund designated for payments to Offset Subclass Members;
3. Pay for the costs of administering the Settlement Fund; and
4. Pay Class Counsel fees and a Service Award to Plaintiff and Court-awarded costs from the Settlement Fund, with all amounts to be approved by the Court.

In exchange, Plaintiff and the Settlement Class Members who do not exclude themselves from the Settlement agree to give up any claim they have for (a) any and all claims disputing the value of UM/UIM coverage or premiums based on or relating to the Schmick offset or New Mexico being a “gap theory” state with respect to the payment of UIM benefits; (b) any and all claims related to or arising out of UIM benefits being reduced or denied due to a Schmick offset; (c) any and all claims for penalties arising from or relating to late payment, non-payment, or underpayment of benefits for UM/UIM claims; and (d) any and all claims arising from or relating to the charging of premiums for uninsured and underinsured motorist insurance coverage. If you are a member of the Settlement Class, you can submit a Claim Form to be eligible to be paid. Alternatively, you may, if you wish, request to be excluded from the Settlement, which means you are not eligible for payment, and you maintain your right to sue Defendants individually and separately.

You are a member of the Settlement Class against Defendants if you either (1) had an underinsured motorist claim reduced or “offset” by the amount paid by the at-fault driver in an accident between October 1, 2010, and March 31, 2022; or (2) purchased a New Mexico automobile insurance policy containing UM/UIM motorist coverage between October 1, 2010, and March 31, 2022.

If you are a Settlement Class Member, you have four options.

1. Submit a Claim Form for payment;
2. Exclude yourself from the Settlement;
3. Do nothing; or
4. Object to the terms of the Settlement

You may submit a Claim Form for payment of $25,000.00, if you submitted an underinsured motorist coverage claim during the class period of October 1, 2010, through March 31, 2022, that was reduced, or “offset,” by the amount you received from the insurer of the at-fault driver.

NOTE, if the driver of the vehicle that was at-fault in the accident had no liability insurance, then you had an uninsured motorist coverage claim, not an underinsured motorist claim, and you are not eligible for payment under this option

You can submit a Claim Form using the online portal here using the Unique ID and PIN from the postcard you received. Claim Forms must be submitted by March 30, 2026.

You may also fill out and sign the Claim Form and mail it to the Settlement Administrator at the address provided below. A copy of the Claim Form can be found here. Claim Forms must be postmarked no later than March 30, 2026.

Patricia Lucero v. Nationwide Mutual Insurance Company, et al.
c/o Settlement Administrator
P.O. Box 5358
Portland, OR 97208-5358

If the address you submit on your Claim Form changes prior to 60 days after the Effective Date of the Settlement, you must contact the Settlement Administrator to provide a current address, or you may not receive your Settlement Class Member payment.

All claims will be verified by referencing the Nationwide Defendants’ business records. Only valid claims will be paid. Knowingly submitting a false claim is a violation of federal law.

You have the right to not be a part of the Settlement by excluding yourself or “opting out” of the Settlement Class. If you wish to exclude yourself, you must do so on or before February 28, 2026, as described below. You do not need to hire your own lawyer to request exclusion from the Settlement Class. If you exclude yourself from the Settlement Class, you give up your right to receive any benefits as part of this Settlement, and you will not be bound by any judgments or orders of the Court, whether favorable or unfavorable. However, you will keep your right to sue any of Defendants separately in another lawsuit if you choose to pursue one.

To exclude yourself from this lawsuit and/or preserve your right to bring a separate case, you must make a request to be excluded in writing and, with sufficient postage, mail the request to the following address:

Patricia Lucero v. Nationwide Mutual Insurance Company, et al.
c/o Settlement Administrator
P.O. Box 5358
Portland, OR 97208-5358

A request for exclusion must be postmarked on or before February 28, 2026. Your request for exclusion must contain the following:

1. The name of the Action (Lucero v. Nationwide Mutual Insurance Company, et al.);
2. Your full name;
3. Your current address;
4. A clear statement that you wish to be excluded from the Settlement Class, such as, “I request exclusion from the Settlement Class”; and
5. Your signature.

The Settlement Administrator will file your request for exclusion with the Court. If you are signing on behalf of a Settlement Class Member as a legal representative (such as an estate, trust or incompetent person), please include your full name, contact information, and the basis for your authority. A request for exclusion must be exercised individually and not on behalf of a group.

IF YOU DO NOT EXCLUDE YOURSELF FROM THE SETTLEMENT CLASS BY THE POSTMARK DEADLINE OF FEBRUARY 28, 2026, YOU WILL REMAIN PART OF THE SETTLEMENT CLASS AND WILL BE BOUND BY THE ORDERS OF THE COURT IN THIS LAWSUIT AND BY THE TERMS OF THE SETTLEMENT IF IT IS APPROVED BY THE COURT, EVEN IF YOU DO NOT SUBMIT A CLAIM FORM FOR PAYMENT. IF YOU DO NOT WISH TO BE BOUND BY DECISIONS OR SETTLEMENT IN THIS CASE, YOU MUST REQUEST EXCLUSION FROM THE CLASS ACTION.

If you do not submit a Claim related to an accident during the Class Period, but you purchased a New Mexico automobile insurance policy with UM/UIM coverage during that period, you will automatically receive a check in the mail. The amount of that check will be based upon a portion of the total UM/UIM premiums you paid during the period, the number of Settlement Class Members, and the amount of the Settlement Fund available after paying claims under Option 1, attorneys’ fees, Incentive Award, and costs of Settlement Administration.

The full terms of the Settlement can be found here. If you think the terms of the Settlement are not fair, reasonable, or adequate to the Settlement Class Members, you may file a Notice of Intent to object to the terms of the Settlement. If you object to the terms of the Settlement, you cannot request exclusion from the Settlement. If you object to the terms of the Settlement and your objection is overruled, you will be bound by the terms of the Settlement and all rulings and orders from the Court.

To properly object to the terms of the Settlement, you must send, with sufficient postage, a Notice of Intent to object to the terms of the Settlement and to appear at the Final Fairness Hearing (described below) to each of the following:

COURT
US District Court District of New Mexico Pete V. Domenici U.S. Courthouse
333 Lomas Blvd NW, Suite 270
Albuquerque, NM 87102

CLASS COUNSEL
Kedar Bhasker
LAW OFFICE OF KEDAR BHASKER, LLC
2741 Indian School Rd. NE
Albuquerque, NM 87106

NATIONWIDE'S COUNSEL
Rodger L. Eckelberry
BAKER & HOSTETLER LLP
200 S. Civic Center Dr. Suite 1200
Columbus, OH 43215

The Notice of Intent must include all the following information:

1. The name of the case and case number;
2. Your name, address, telephone number, email address (if any) and signature;
3. The specific reasons why you object to the terms of the Proposed Settlement;
4. A written statement of all grounds for objection, accompanied by any legal support you care to submit;
5. The name, address, bar number, and telephone number of any attorney who represents you related to your intention to object to the terms of the Settlement;
6. A list of all persons who will be called to testify at the Final Fairness Hearing in support of the objection;
7. A statement confirming whether you and/or your attorney intends to personally appear and/or testify at the Final Fairness Hearing; and
8. Your signature, or the signature of any attorney representing you.

Notices of Intent to object must be postmarked by February 28, 2026. Any Notice of Intent that is not postmarked by the deadline set forth above or which does not comport with the requirements listed above may waive the right to be heard at the Final Fairness Hearing. If you file a Notice of Intent, you waive the right to request exclusion from the Settlement Class and will be bound by any decisions and orders from the Court and by the terms of the Settlement if it is approved by the Court. If you do not want to be bound by the decisions and rulings by the Court, you must file a request for exclusion and not a Notice of Intent.

The Court has preliminarily appointed Plaintiff Patricia Lucero to be the Class Representative of the Settlement Class. The Court has also preliminarily appointed the following lawyers as Class Counsel for the Settlement Class:

Class Counsel will file an application for attorneys’ fees, subject to approval by the court.

Class Counsel will also seek a Service Award for the Class Representative, subject to Court approval. The Service Award is designed to reward the Class Representatives for securing the recovery awarded to members of the Settlement Class and to acknowledge the time spent by the Plaintiff participating in the case and prosecuting the claims for the benefit of the Settlement Class. Payment of the Service Award will be made from the Settlement Fund.

As a part of the Settlement, Class Members agree not to sue Defendants for any claims premiums charged for UM/UIM coverage during the class period; any claims disputing the value of UM/UIM coverage or premiums based on or relating to the Schmick offset (which is reducing underinsured motorist coverage benefits by the amount available from the at-fault driver’s liability insurance); or New Mexico being a “gap theory” state with respect to the payment of UIM benefits, any and all claims related to or arising out of UIM benefits being reduced or denied due to a Schmick offset; any and all claims for penalties arising from or relating to late payment, non-payment, or underpayment of benefits for UM/UIM claims; and any and all claims arising from or relating the charging of premiums for Underinsured Motorist insurance coverage Full terms of the Released Claims and Released Parties can be found in the Settlement Agreement and Release.

Because the settlement of a class action decides the rights of all members of the proposed class, the Court must give final approval to the Settlement before it can take effect. Payments will only be made if the Court approves the Settlement. The Final Approval Hearing shall be held before the Court on a date to be set by a separate order of the Court.

At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate and decide whether to approve the Settlement; Class Counsel’s application for attorneys’ fees, costs, and expenses, and the incentive awards to Plaintiffs. If there are objections, the Court will consider them. The Court will also listen to people who have asked to speak at the hearing.

Note: Once scheduled, the date of the hearing is subject to change without further notice to Settlement Class Members. The Court may also decide to hold the hearing via Zoom or by phone. Any change will be posted on the Home page of this website.