ILNews

Local law firm reaps $6.3M in fees from BMV class-action suit

Back to TopCommentsE-mailPrintBookmark and Share

A local law firm will receive $6.3 million as part of a class-action lawsuit that accused the Indiana Bureau of Motor Vehicles of overcharging for driver’s licenses.

Cohen & Malad LLP’s fee represents 21 percent of the $30 million awarded to Hoosier motorists as part of a settlement approved by Marion Superior Court Judge Heather Welch on Nov. 12.

A BMV spokesman said in an email that it will abide by the terms and conditions of the settlement.

The overcharges were discovered after Indianapolis attorney Irwin Levin filed suit in March against the BMV, accusing it of overcharging drivers for licenses. Gov. Mike Pence then directed the BMV to conduct an independent review of the more than 300 fees the agency administers. That review found more cases of overcharging.

In response, the BMV cut fees in June for standard operator's licenses by $3.50. The new fees range from $17.50 for a six-year license to $14.50 for a four-year license—a maximum reduction of about 19 percent.

Levin, of Indianapolis-based Cohen & Malad, said the firm, which specializes in class-action suits, negotiated its fee with the state. The fee was lower than the 33-percent charge it typically commands in class actions.

“It wasn’t our job to uncover this; it was the state’s job,” he said. “I’m not going to apologize for taking the risk.”

About 4.5 million Indiana drivers may be eligible to receive a refund, Levin said. The class of plaintiffs includes anyone who paid a fee to the BMV between March 2007 and June 2013.

Amounts awarded to individuals should range from $3.50 to $15, Levin said.

Those eligible for a refund can get a credit while transacting business at a license branch or they can fill out a form that will be available on the BMV website in about a month and receive a check in the mail. The BMV will mail checks to everyone else entitled to a refund.

Levin said he is “extremely satisfied” with the settlement and particularly proud that firm lawyers uncovered the overcharges.

“People don’t have any choice, they have to deal with the BMV,” he said. “If you want to drive legally in Indiana, you’ve got to do business with the BMV.”

Meanwhile, Gov. Mike Pence on Tuesday named Kent Schroder interim commissioner of the BMV.

Schroder had been the BMV chief of staff since June 1 after serving as its chief information officer since 2005.

He replaces Scott Waddell, who announced his resignation as BMV commissioner last month after three years at the job. He will step down Dec. 2.

ADVERTISEMENT

  • Overcharges?
    Not quite sure how this was price gouging, since the $3.50 paid in by the poor hapless victims merely went to the government to run the license bureau. Seems to me the only clear winner here was Mr. Levin, who seems to want a mindboggling windfall for what I am not sure (correcting some state accounting that was not actual fraud or embezzlement) AND also our heartfelt thanks? Sorry Attorney Levin, you will have to be content with the lucre. Not that actions of a patriot as those I hang with view it.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I like the concept. Seems like a good idea and really inexpensive to manage.

  2. I don't agree that this is an extreme case. There are more of these people than you realize - people that are vindictive and/or with psychological issues have clogged the system with baseless suits that are costly to the defendant and to taxpayers. Restricting repeat offenders from further abusing the system is not akin to restricting their freedon, but to protecting their victims, and the court system, from allowing them unfettered access. From the Supreme Court opinion "he has burdened the opposing party and the courts of this state at every level with massive, confusing, disorganized, defective, repetitive, and often meritless filings."

  3. So, if you cry wolf one too many times courts may "restrict" your ability to pursue legal action? Also, why is document production equated with wealth? Anyone can "produce probably tens of thousands of pages of filings" if they have a public library card. I understand this is an extreme case, but our Supreme Court really got this one wrong.

  4. He called our nation a nation of cowards because we didn't want to talk about race. That was a cheap shot coming from the top cop. The man who decides who gets the federal government indicts. Wow. Not a gentleman if that is the measure. More importantly, this insult delivered as we all understand, to white people-- without him or anybody needing to explain that is precisely what he meant-- but this is an insult to timid white persons who fear the government and don't want to say anything about race for fear of being accused a racist. With all the legal heat that can come down on somebody if they say something which can be construed by a prosecutor like Mr Holder as racist, is it any wonder white people-- that's who he meant obviously-- is there any surprise that white people don't want to talk about race? And as lawyers we have even less freedom lest our remarks be considered violations of the rules. Mr Holder also demonstrated his bias by publically visiting with the family of the young man who was killed by a police offering in the line of duty, which was a very strong indicator of bias agains the offer who is under investigation, and was a failure to lead properly by letting his investigators do their job without him predetermining the proper outcome. He also has potentially biased the jury pool. All in all this worsens race relations by feeding into the perception shared by whites as well as blacks that justice will not be impartial. I will say this much, I do not blame Obama for all of HOlder's missteps. Obama has done a lot of things to stay above the fray and try and be a leader for all Americans. Maybe he should have reigned Holder in some but Obama's got his hands full with other problelms. Oh did I mention HOlder is a bank crony who will probably get a job in a silkstocking law firm working for millions of bucks a year defending bankers whom he didn't have the integrity or courage to hold to account for their acts of fraud on the United States, other financial institutions, and the people. His tenure will be regarded by history as a failure of leadership at one of the most important jobs in our nation. Finally and most importantly besides him insulting the public and letting off the big financial cheats, he has been at the forefront of over-prosecuting the secrecy laws to punish whistleblowers and chill free speech. What has Holder done to vindicate the rights of privacy of the American public against the illegal snooping of the NSA? He could have charged NSA personnel with violations of law for their warrantless wiretapping which has been done millions of times and instead he did not persecute a single soul. That is a defalcation of historical proportions and it signals to the public that the government DOJ under him was not willing to do a damn thing to protect the public against the rapid growth of the illegal surveillance state. Who else could have done this? Nobody. And for that omission Obama deserves the blame too. Here were are sliding into a police state and Eric Holder made it go all the faster.

  5. JOE CLAYPOOL candidate for Superior Court in Harrison County - Indiana This candidate is misleading voters to think he is a Judge by putting Elect Judge Joe Claypool on his campaign literature. paragraphs 2 and 9 below clearly indicate this injustice to voting public to gain employment. What can we do? Indiana Code - Section 35-43-5-3: Deception (a) A person who: (1) being an officer, manager, or other person participating in the direction of a credit institution, knowingly or intentionally receives or permits the receipt of a deposit or other investment, knowing that the institution is insolvent; (2) knowingly or intentionally makes a false or misleading written statement with intent to obtain property, employment, or an educational opportunity; (3) misapplies entrusted property, property of a governmental entity, or property of a credit institution in a manner that the person knows is unlawful or that the person knows involves substantial risk of loss or detriment to either the owner of the property or to a person for whose benefit the property was entrusted; (4) knowingly or intentionally, in the regular course of business, either: (A) uses or possesses for use a false weight or measure or other device for falsely determining or recording the quality or quantity of any commodity; or (B) sells, offers, or displays for sale or delivers less than the represented quality or quantity of any commodity; (5) with intent to defraud another person furnishing electricity, gas, water, telecommunication, or any other utility service, avoids a lawful charge for that service by scheme or device or by tampering with facilities or equipment of the person furnishing the service; (6) with intent to defraud, misrepresents the identity of the person or another person or the identity or quality of property; (7) with intent to defraud an owner of a coin machine, deposits a slug in that machine; (8) with intent to enable the person or another person to deposit a slug in a coin machine, makes, possesses, or disposes of a slug; (9) disseminates to the public an advertisement that the person knows is false, misleading, or deceptive, with intent to promote the purchase or sale of property or the acceptance of employment;

ADVERTISEMENT