Insurance Class Action Articles

The latest class action developments and trends in the insurance industry, including news, key cases, and strategies.

Middle District of Florida Remands Insurance Coverage Class Action, Reasoning Amount In Controversy Is Determined From Value Of Claim, Not Policy

The value of the claim at issue, not the value of the policy limit, is considered for purposes of determining the amount in controversy in an insurance coverage class action. That, the Middle District of Florida found, is the law in the Eleventh Circuit. The plaintiff in Faust v. Maxum Casualty Insurance Company filed in state court a class action against his insurer on behalf of persons covered for Medical Payments coverage under a Florida property, casualty, surety, ... Keep Reading »

GCs facing more bet-the-company and higher exposure class actions

Across industries, companies spent $2 billion on class action lawsuits in 2014, slightly less than the $2.1 billion they spent in 2013. This year, spending is expected to return to 2013 levels. Companies’ class action dockets increased on average by one new case in 2014, bringing the average number of class actions managed to five. This total is expected to remain constant in 2015, as the number of new matters is likely to be offset by those resolved. As before, ... Keep Reading »

District Court Strikes Homeowners Policyholders’ Class Action Allegations

The United States District Court for the Southern District of Ohio granted defendant State Auto's motion to strike plaintiffs' class allegations, holding that the complaint itself demonstrated that the proposed class was not ascertainable and could not satisfy Rule 23(a)'s commonality and typicality requirements, nor the predominance and superiority requirements of Rule 23(b).  The complaint alleged that State Auto committed fraud, breached the duty of good faith and ... Keep Reading »

District of Colorado Declines To Certify Deceptive Practices Class

The District of Colorado declined to certify a class in a case against Dollar Rent A Car where the Plaintiff alleged Dollar tricked renters into buying Loss Damage Waiver ("LDW"), supplemental liability insurance ("SLI"), and roadside assistance ("Roadsafe") (collectively "Add-On Products") that they had declined, or charged them without proper consent or contrary to disclosure requirements.  Plaintiff alleged Dollar violated the Colorado Consumer Protection Act and ... Keep Reading »

Insurance Balance Billing Class Fails Rule 23’s Requirements

Plaintiff filed a putative class action in Arkansas state court against his automobile insurer for alleged failure to pay the full amount it was contractually required to pay for his medical bills following a car accident.  Specifically, the defendant insurer allegedly paid a reduced in-network rate comparable to that negotiated by health insurers, which plaintiff argued improperly left him – and a putative class of similarly situated policyholders – to pay the ... Keep Reading »

Third Circuit Weighs In On Burden of Proof and Evidentiary Standards Applicable to Cases Removed Under CAFA

Days before the Supreme Court’s decision addressing the requirements for CAFA notices of removal in Dart Cherokee Basin Operating Co., LLC v. Owens, the Third Circuit addressed the evidentiary requirements for surviving a motion to remand a case removed under CAFA for failure to satisfy CAFA’s numerosity and amount in controversy requirements.   Plaintiff in the case sought to represent a class of “hundreds” of individuals injured in common carrier motor vehicle ... Keep Reading »

Ninth and Tenth Circuits Address Removal Under CAFA’s “Mass Action” and “State Action” Provisions

In Corber v. Xanodyne Pharmaceuticals, the Ninth Circuit – on rehearing en banc – examined the applicability of the “mass action” provision of CAFA, which provides federal jurisdiction for any civil action in which monetary relief claims of 100 or more persons are “proposed to be tried jointly.”  Pursuant to California Code of Civil Procedure 404.1, plaintiffs moved for coordination of their cases alleging injuries relating to ingestion of a drug ingredient.  Defendants ... Keep Reading »

Pennsylvania District Court Denies Terminated Insurance Agents’ Bid for Certification

The Eastern District of Pennsylvania denied plaintiffs’ motion to certify certain issues under Rule 23(c)(4) and 23(b)(2), holding that the presence of numerous individualized questions, choice-of-law concerns, and other inefficiencies in the putative class litigation made certification inappropriate. Allstate had terminated over 6,200 agents, 90% of whom happened to be over the age of 40, offering four different severance options to the terminated agents. Three of the ... Keep Reading »

Seventh Circuit Addresses Burden of Proof Under CAFA’s Home State Exception, Affirms Denial of Remand and Award of Costs to Defendant Insurer, and Admonishes Class Counsel

The Seventh Circuit recently addressed the applicability of the home state exception under the Class Action Fairness Act (“CAFA”).  The case arose from health insurer Right Choice Insurance Company’s withdrawal from the Illinois market and cancellation of its insurance policies.  Former policyholders filed a putative class action lawsuit in the United States District Court for the Southern District of Illinois alleging that cancellation of their policies violated ... Keep Reading »

Class Representative’s Motion To Remand For Insufficient Amount In Controversy Doesn’t Add Up

A Kentucky federal court recently ruled that a class plaintiff may not defeat removal by understating the aggregate amount in controversy alleged in her complaint. The defendants had assisted plaintiff in connection with her claim for Social Security Disability benefits after she was referred to them by her long-term disability insurance carrier.  According to plaintiff, the nature of the fee arrangement between the defendants and the referring insurance carriers ... Keep Reading »