Plaintiff Manual Hernandez claimed in 2000 that American Family Mutual Insurance improperly used computer software to reduce payments on medical claims from auto accidents. After contacting an attorney, a lawsuit was soon filed, which sought class action status in a Madison County, Illinois courthouse.
In 2002, Madison County, Illinois Circuit Judge Daniel Stack Stack certified Hernandez as representative of a class of plaintiffs, and subsequently denied American Family's motions to reconsider and to decertify. The class action was originally certified as 33 states having eligiblilty, however, in 2003, Stack ruled that a nationwide class action would be unmanageable and asked the parties to appear again so he could decide which states should remain in the class.
After a hearing, he reduced the nationwide class to states where American Family does business - Arizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah and Wyoming. Judge Stack reduced the once-heavy national class action suit against American Family Mutual Insurance from 33 states to a trim 12.
American Family again moved to decertify the class. The motion stated that the insurer did not use the software in Kansas, Minnesota, North Dakota, Oregon, Utah or Colorado.
His latest order as of August 2005, Stack denied the motion to decertify but dropped Kansas, Minnesota, North Dakota, Oregon and Utah. He allowed claims from Colorado since July 1, 2003.
For the remaining states he allowed claims since July 25, 1990.
The order covers those injured while driving or riding in autos that American Family insured, as well as medical providers with rights of assignment.