IN THE IOWA DISTRICT COURT IN AND FOR DUBUQUE COUNTY QUINTON DURUJI, on Behalf of Himself and all Others Similarly Situated; vs. Plaintiffs, Case No: PLATINUM SERVICES, INC. n/k/a PLATINUM SUPPLEMENTAL INSURANCE, INC.; WAYNE BRIGGS, Defendants. PETITION COMES NOW Plaintiffs, and for cause of action against Defendants states as follows: THE PARTIES 1. Defendant Platinum Services, Inc., n/k/a Platinum Supplemental Insurance, Inc., (hereinafter Platinum ) is an Iowa corporation having its general headquarters located in Dubuque, Dubuque County, Iowa. 2. Platinum is engaged in the sales and service of certain supplemental insurance products generally in various Midwestern states. 3. Defendant Wayne Briggs ( Briggs ) is a resident of Dubuque, Iowa, and is the President of Platinum. 4. Plaintiff Quinton Duruji is a resident of the State of Minnesota. 5. Other persons similarly situated (the Putative Class or Putative Class Members ) are residents of various other states within the continental United States. VENUE AND JURISDICTION 6. Jurisdiction and Venue are proper as the Defendant is found in Dubuque County, Iowa and many of the acts complained of occurred in Dubuque County, Iowa.
GENERAL ALLEGATIONS 7. Plaintiff and Putative Class Members are former agents of Platinum. 8. Plaintiff and Putative Class Members executed various Agent Agreements, which purport to govern the relationship between agent and Platinum; specifically providing that Platinum will pay agents commission for selling its insurance products. 9. Under the Agent Agreements, agents receive a relatively larger percentage of commission on premiums paid by customers in the first year of the insurance policy. 10. Under the Agent Agreements, agents receive a relatively smaller percentage of commission on premiums paid by customers in subsequent years of an insurance policy, called renewal commissions. 11. Under the Agent Agreements, Platinum remains obligated to pay renewal commissions after termination of the Agent Agreement, subject to the terms of the Agent Agreements. 12. The Agent Agreements provide that Platinum is responsible for preparing and delivering to the agent a statement summarizing the basis and calculation for each commission payment. COUNT I - FRAUDULENT MISREPRESENTATION AGAINST PLATINUM AND WAYNE BRIGGS 13. The allegations of paragraphs 1-12 are incorporated as though fully set forth herein. 14. At all relevant times Defendants Platinum and Briggs supplied false information on the statements provided to Plaintiff and Putative Class Members, including but not limited to removing customers who maintained their policies through Platinum from the statements, deducting commission payments, charging Plaintiff and Putative Class Members chargebacks for customers they claimed cancelled their policies early, and by failing to correct known problems with the software used to calculate commission payments causing erroneous payment. 15. Defendants Platinum and Wayne Briggs knew that the information on the statements was false, or acted with reckless disregard for the truth or falsity of the information on the statements. 16. The information on the statements was material, as it controlled the amount of commissions paid to Plaintiff and Putative Class Members. 17. Defendants Platinum and Wayne Briggs intended to deceive Plaintiff and Putative Class Members by supplying information on their statements that Defendants knew to be false or acted with reckless disregard of the truth or falsity of the information.
18. Plaintiff and Putative Class Members acted in reliance upon the information on the statements provided by Defendants Platinum and Wayne Briggs, by accepting the commissions paid along with such statements. 19. Defendants misrepresentations caused damage to Plaintiff and Putative Class Members by inducing them to accept the commissions paid. 20. Defendants misrepresentations constitute a willful and wanton disregard of the rights of Plaintiff and Putative Class Members. COUNT II - NEGLIGENT MISREPRESENTATION AGAINST PLATINUM AND WAYNE BRIGGS 21. The allegations of paragraphs 1-20 are incorporated as though fully set forth herein. 22. Defendants Platinum and Wayne Briggs had a financial interest in supplying the information on the statements to Plaintiff and Putative Class Members, because such information controlled how much commission was paid to Plaintiff and Putative Class Members. 23. Defendants Platinum and Wayne Briggs intended to supply the information on the statements for the benefit and guidance of Plaintiff and Putative Class Members in determining the amount of commission due under their respective contracts. 24. Defendants Platinum and Wayne Briggs intended the information to influence Plaintiff s and Putative Class Members s acceptance of the commissions purportedly paid in compliance with each contract. 25. Plaintiff and Putative Class Members acted in reliance on the truth and accuracy of the information supplied by Defendants Platinum and Wayne Briggs by accepting the commissions purportedly paid pursuant to each contract. 26. The information supplied by Defendants Platinum and Wayne Briggs caused Plaintiff and Putative Class Members to accept commissions less than what was due under each contract. 27. Defendants misrepresentations constitute a willful and wanton disregard of the rights of Plaintiff and Putative Class Members. CLASS ACTION ALLEGATIONS 28. Plaintiff, on behalf of himself and as a representative of the Putative Class, pursuant to the Iowa Rules of Civil Procedure 1.261(1) and (2); Rule 1.262(2) and Rule 1.263(2) describe the Putative Class as follows: All former agents of Platinum who have received reduced or erroneous commission for all years preceding the filing of this action and subsequent thereto.
29. Plaintiff is informed and believes that the Putative Class Members number in the hundreds and reside throughout the United States and their joinder is therefore impracticable. 30. There exist in this action questions of law and fact common to all Putative Class Members and the separate adjudication of these issues by each of the Putative Class Members would be impracticable and inefficient and would create a risk of inconsistent judgments. Therefore, a class action should be permitted for the fair and efficient adjudication of the controversy. Common questions of law and fact include, but are not limited to: a. Whether Plaintiff and Putative Class Members were agents for Defendant Platinum pursuant to Agent Agreements; b. What are the terms of the Agent Agreements; c. Whether Platinum is required under the terms of the Agent Agreements to provide accurate information to Plaintiff and Putative Class Members relating to the basis and calculation of commission payments; d. Whether Defendants did in fact provide inaccurate information to Plaintiff and Putative Class Members relating to the basis and calculation of the commission payments that was fraudulent or negligent; e. What is the nature and extent of the damage to Plaintiff and Putative Class Members resulting from Defendants fraud or neglect; 31. The answers to the questions of law and fact common to Plaintiff and Putative Class Members will be discernible from the same sources of evidence, including but not limited to: a. The testimony of current and former agents of Platinum regarding the Agent Agreements, the terms thereof, and the commission payments received pursuant to the Agent Agreements; b. The testimony of current and former employees, officers, and directors of Platinum regarding the calculation and payment of commissions, and the contents of the statements issued to Plaintiff and Putative Class Members; c. The Agent Agreements themselves; d. Records relating to customers who have policies through Platinum and through the Plaintiff and Putative Class Members, including but not limited to the time period such policies were in effect and the premiums paid;
e. The commission statements issued to Plaintiff and Putative Class Members. 32. There is nothing regarding this Class which would pose unusual difficulties in the case management and there are no conflicts of law issues. 33. Plaintiff and his counsel will thoroughly and adequately represent the interests of the Putative Class and they do not have a conflict of interest in the maintenance of this class action. Plaintiff and his counsel have adequate resources, pursuant to Iowa R. Civ. Pr. 1.276, to prosecute this action. 34. The common questions of law and fact involved in this action predominate over any questions affecting only individual Putative Class Members, and a class action is superior to other available methods for the fair and efficient adjudication of the matters alleged herein. PRAYER FOR RELIEF WHEREFORE Plaintiff and the Putative Class pray for an Order and Judgment against Defendants for actual damages caused by Defendants misrepresentation in amounts to be determined at trial; punitive damages in an amount sufficient to deter Defendants and other similarly situated from engaging in such fraudulent conduct in the future; the costs of this action including but not limited to reasonable attorney fees; and such other relief as this Court deems appropriate and just. JURY DEMAND COME NOW Plaintiff and the Putative Class, and hereby request trial by jury of the above-captioned matter. QUINTON DURUJI, on behalf of himself and all others similarly situated, Plaintiff By /s/ Flint Drake D. Flint Drake By /s/ Samuel M. DeGree Samuel M. DeGree Drake Law Firm, P.C. 300 Main Street, Suite 323 Dubuque, Iowa 52001 Telephone: (563) 582-2000 Facsimile: (563) 583-5225 E-mail: fdrake@drakelawpc.com ATTORNEYS FOR PLAINTIFF