Van Owner’s Class Action Bid Fails Over Vehicle Title Dispute
Lillian Louise Morgan Vogt, a Dodge Caravan owner, has had her efforts to pursue a class action lawsuit against Progressive Insurance blocked by the courts. The case revolved around allegations that Progressive improperly handled the title of a vehicle the insurer had previously declared a total loss.
Vogt purchased the van and later learned it had been totaled by Progressive just four months before her purchase. She contended that instead of issuing a salvage title, Progressive directed its salvage vendor to obtain a clean title, which was then used to sell the vehicle to K&B Auto. Vogt claimed K&B emphasized the clean title. After buying the van, she noticed unusual driving characteristics and discovered the vehicle had been in an accident.
Initially, Vogt filed suit alleging fraud, negligent misrepresentation, negligence, and negligence per se. She aimed to represent a class of buyers who had unknowingly purchased vehicles with similar title issues. The core of her argument was that Progressive had a duty under Missouri law to apply for salvage titles for vehicles designated as total losses. The district court denied the class action certification, citing the variability of individual factors, such as whether buyers relied on the absence of a salvage title.
The Eighth Circuit upheld the lower court’s decision. The appeals court acknowledged that while some buyers might have been misled, others could have still purchased the vehicles even with knowledge of their salvage status. The court pointed out that vehicles with salvage designations still have value, whether for rebuilding or parts, requiring an individual examination of each buyer’s decision-making process.
With the class action status denied, Vogt’s claims may proceed individually, but this ruling significantly reduces Progressive’s potential financial exposure. It also sets a precedent for future cases involving auto titling practices. Vogt’s remaining claims against Progressive include fraudulent misrepresentation, negligent misrepresentation, negligence, and negligence.
