An Alliance Auto Lawsuit is a Federal complaint against an Allied Bank in which the plaintiff’s dog was fatally injured in a car accident. Allyson Haskins, a resident of St. Louis, Missouri, and her husband, David Duncan, a resident of Fort Collins, Colorado, a defendant in the above-mentioned conflict, allegedly defaulted on a home equity loan with Ally Bank for a used 2021 Chevy Cobalt.
A few months later, Haskins’ husband, David, was driving the car when it hit a patch of ice and broke a bone resulting in the animal being put to sleep. The frozen brakes of the car then caused the accident that caused David’s dog, Trinity, to be killed. Despite the fact that David and Haskins were insured under their names only, the insured parties did not have sufficient coverage to cover the damages.
Alliance Auto Lawsuit
In this Alliance Auto Lawsuit case, Allied Bank was ordered to pay the plaintiffs’ dog’s owner fifty thousand dollars, save username access to the website for over seven months, and pay fifty thousand dollars in legal fees. In addition, Allied was ordered to pay thirty days of past due rents and costs for the months the car was in the shop. Allied has also been ordered to post a sign in the car dealership that they sell cars “as is” and cars must be returned to the dealership with all documentation proving that the vehicles are in “as good condition” as when the loans were initially signed.
Allied was further ordered to post signage in their dealership advising potential borrowers that if one car is found to be unsafe and cannot be repaired, Allied Car LLC will offer another vehicle at no cost to the borrower. Additionally, Allied Auto LLC was ordering to post signage in the Horseshoe area of the city informing the public that a car is not covered by automobile insurance.
Because this was a class action, the United States District Court for the Eastern District of Missouri allowed the named defendants to form a fund to compensate each of the class members. A separate administrator was assigned to manage the fund, which was distributed to each defendant according to their percentage shares.
The trial court instructed that if any defendant violated the terms of the agreement, they would be immediately forced into bankruptcy. Despite this threat, each of the named defendant was able to continue its operations until the court advised the administrator to cease operations.
Despite these well-intended efforts Allied failed to settle the Alliance Auto Lawsuit case.
The class action settlement is the largest automotive liability case in history. Consumers are owed a tremendous amount of money and Allied failed to come close to covering their costs.
This case may set precedent in class action cases across the country allowing other victims of auto loans to seek monetary compensation. Furthermore, this may encourage more consumers to seek a claim through their own attorney because they know they have the right to ask for and demand compensation on their own.
