Last week the Fifth Circuit issued a short opinion that made an important point that does not arise often in class certification decisions. Class certification failed because the plaintiffs’ proposed theory of liability would benefit only some class members and disadvantage others, who would be overpaid if the plaintiffs’ theory were correct. For that reason
Auto Insurance
Auto Insurance Total Loss Class Action: Ninth Circuit Affirms Denial of Class Certification
By Wystan Ackerman on
Numerous class action suits have been filed against auto insurers regarding the valuation of vehicles that are total losses. These cases typically allege that insurers are undervaluing vehicles in some common way or in violation of a state regulation. The Ninth Circuit recently affirmed the denial of class certification in a published decision that I…
Superiority and Mootness of Injunctive Relief Claim Addressed in Recent Denial of Class Certification
By Wystan Ackerman on
Posted in Auto Insurance, Defense Strategy
A recent decision by a Washington federal district court caught my eye because it involved a circumstance I often see—a new development in the law results in a class action lawsuit being filed before the defendant has an opportunity to change its practices in response to the change (or clarification) in the law. This decision…
Medicare Secondary Payer Act Class Actions
By Wystan Ackerman on
Posted in Auto Insurance
There have been a substantial number of putative class actions filed recently against insurers involving the Medicare Secondary Payer Act (MSPA). These cases are typically filed by assignees of Medicare advantage organizations that have paid for medical services arising from auto accidents. The claim is that under the MSPA, the PIP/MedPay coverage under auto policies…
Compliance With Medicare Secondary Payer Act At Issue In Auto Insurance Case
By Wystan Ackerman on
Posted in Auto Insurance
A recent decision in the District of New Jersey addressed an auto insurer’s obligations to comply with the Medicare Secondary Payer Act. Auto insurers may wish to review their practices and procedures in light of this decision.
In Negron v. Progressive Casualty Insurance Company, 2016 U.S. Dist. LEXIS 24994 (D.N.J. Mar. 1, 2016), the…
Self-Driving Vehicles – Potential Class Action Exposure for Insurers?
By Wystan Ackerman on
Posted in Auto Insurance
Self-driving or autonomous vehicles is a hot topic in insurance industry media and mainstream media as well. I attended a great program on this at the Federation of Defense and Corporate Counsel (FDCC) annual meeting last week. Auto manufacturers are working on a broad spectrum of designs, from vehicles with automatic safety features such as…
Total Loss Valuations: Class Certified By Louisiana Federal Court
By Wystan Ackerman on
Posted in Auto Insurance
Insurers or their vendors generally use software to perform valuations of vehicles for total losses on auto insurance claims. This software will typically use databases of recent sales or prices offered for comparable vehicles in the area to estimate a vehicle’s value, and enable adjustments to be made for equipment, mileage, condition and other factors. …
Class Action on Use of Staff Counsel: Dismissal Affirmed By Seventh Circuit
By Wystan Ackerman on
Posted in Auto Insurance
A while back I wrote a blog post on a district court ruling that an insurer did not have an obligation to disclose in its insurance policy that it would use staff counsel to defend the insured. The Seventh Circuit recently affirmed the district court’s decision granting the insurer’s motion to dismiss.
In Golden v. …
Applying Comcast v. Behrend In An Insurance Class Action: District of Alaska Opinion
By Wystan Ackerman on
Posted in Auto Insurance, Class Certification Standards
I’ve tried to make this a blog with national coverage. This post is my first venture to Alaska, which is about as far from my home in Connecticut as one can get and still be in the U.S. (except, I suppose, for Hawaii). What sparked my venture to write about a decision from Alaska is…
Medpay and Personal Injury Protection (PIP) Class Action: Eighth Circuit Reverses Class Certification, Stressing That All Class Members Must Have Standing
By Wystan Ackerman on
Posted in Auto Insurance
The Eighth Circuit recently addressed class certification in an insurance class action involving medpay and personal injury protection (PIP) coverage. The case involved the use of third-party bill reviewers and the application of a guideline comparing charges for medical services to the 80th percentile of such charges in the geographic area. The court applied the…