Liberty Mutual Insurance has been hit with a class action, accusing the insurer of discriminating against LGBTQ racial minorities when processing homeowners’ insurance claims.
On Nov. 15, attorneys with the firm of Jaszczuk P.C., of Chicago, filed a complaint in Chicago federal court on behalf of named plaintiffs Terrie Sullivan and Veronica Rodriguez, a married couple, of Evanston.
According to the complaint, Sullivan is a Black queer woman, while Rodriguez is a Latino American queer woman.
Daniel I. Schlessinger
| Jaszczuk P.C.
The complaint accuses Liberty Mutual of violating the federal Fair Housing Act and the Illinois Human Rights Act in the way the insurer has handled homeowners’ insurance claims from Sullivan and Rodriguez, as well as other policy holders who are LGBTQ and Black, Latino or other racial minorities.
“Minority Liberty policyholders who have submitted claims have suffered greatly as a result of the discrimination that Liberty perpetuates, ratifies, and profits from,” the complaint alleged. “Many, like Terrie and Veronica, are first-time homeowners dealing with significant property damage that disrupts their daily lives, requires them to leave their homes, and/or poses significant health risks.
“Pervasive discrimination by claims handlers leaves countless rightful claims unpaid, leads to further property damage, and causes unnecessary emotional distress…” the complaint said.
The couple is asking the court to expand their lawsuit to include a class of virtually all Liberty Mutual policy holders in the U.S. who are minorities and who have had claims either denied or partially denied in the past four years.
The plaintiffs believe this likely will include thousands of other class members.
The lawsuit stems from a claims process Sullivan and Rodriguez have navigated since August 2020. According to the complaint, the couple have owned a townhome in Evanston since 2010.
In September 2020, the complaint said the toilet in their bathroom overflowed, and did so three more times, each time spilling raw sewage into their home.
In their complaint, the couple said they hired a plumber, who determined the problems were caused by tree roots in their home’s sewer lines.
According to the complaint, a contractor estimated the backups had caused substantial damage to their home, contaminating drywall, warping floors and doors, and fueling mold growth. The couple alleged the mold caused them to become ill.
They filed an insurance claim in November 2020.
According to the complaint, Liberty Mutual initially denied the claim, asserting it was caused by a sump pump in their basement. The couple noted their home has neither a basement, nor a sump pump.
After they and their contractors continued to press, Liberty Mutual’s adjuster changed his position, and indicated the claim would be covered. That decision was allegedly reversed again, when a new adjuster refused to approve their claim without a physical inspection of the property, a step the couple said they were reluctant to take “in the midst of the pandemic under circumstances plainly indicative of bad faith claims practices.”
After Liberty Mutual again allegedly denied their claim, the couple then continued to take their case up the corporate ladder, but received no response.
In April 2021, the couple agreed to the inspection, and Liberty Mutual determined their damage was covered.
However, the couple said Liberty Mutual then shortchanged them, agreeing to pay $13,000, “not even remotely close to the hundreds of thousands of dollars in damage their home and personal property had sustained.”
When the couple complained, Liberty Mutual allegedly then continued to question their claim and losses, sending additional investigators and requiring Sullivan and Rodriguez to “submit to a recorded examination under oath.”
Liberty Mutual again allegedly denied the bulk of their claim.
In May 2021, the couple said their contractor allegedly told them a Liberty Mutual claims adjuster had referred to Sullivan as a “nigger-carpet muncher” and said Sullivan was “’too aggressive,’ a common racial stereotype leveled against Black women.”
The complaint further asserted the adjuster had referred to Rodriguez as a “dumb Puerto Rican bitch.”
However, the complaint further asserts other forms of “subtle discrimination” against others involved in the couple’s claims process, such as insinuations of fraud against the couple, “incredulous at the idea that minorities could own expensive items.”
The complaint alleges Liberty Mutual then conducted a two-week long “sham investigation,” which “apparently revealed no indicia of discrimination.”
Sullivan and Rodriguez said their claims have yet to be paid, and their home remains unrepaired.
They assert their experience is indicative of a larger pattern of discrimination in the claims process at Liberty Mutual.
They are seeking court orders requiring Liberty Mutual to launch independent investigations “into discriminatory claims handling practices;” implementing “effective anti-discrimination policies and procedures;” and appointing an “independent monitor … to monitor Liberty’s claims handling practices” and the company’s anti-discrimination policies.
The couple is asking the court to order Liberty Mutual to pay unspecified punitive damages, plus attorney fees.
The couple is represented by attorneys Daniel I. Schlessinger, Martin W. Jaszczuk., Margaret M. Schuchardt, Seth H. Corthell and Tamra J. Miller, of Jaszczuk P.C.
Liberty Mutual did not reply directly to the allegations in the lawsuit.
However, in a statement emailed to the Cook County Record, a Liberty Mutual spokesperson said: “While we do not discuss the specifics in litigation, Liberty Mutual has a zero tolerance policy for discriminatory behavior – in our workplace and with our customers and partners.
“We take all allegations seriously and conduct appropriate and thorough investigations. Further, every insurance claim we receive goes through a standard, equitable review process in order to be substantiated and paid.”