Circuit Throws Out Class Certification in Insurance Case, Ignores Discovery Row
A class action that had State Farm and the U.S. Chamber of Commerce banging the table over "extraordinarily burdensome" discovery orders has ended in a whimper after a federal appeals court reversed certification on entirely different issues.
September 27, 2017 at 04:00 PM
4 minute read
A class action that had State Farm and the U.S. Chamber of Commerce banging the table over “extraordinarily burdensome” discovery orders has ended in a whimper after a federal appeals court reversed certification on entirely different issues.
Monday's ruling by the U.S. Court of Appeals for the Eighth Circuit gave short shrift to the discovery concerns raised by the defense bar. Instead, the panel honed in on the specific language in property insurance policies that convinced U.S. District Judge Nanette Laughrey of the Western District of Missouri to certify a class of 144,900 potential members. The case alleges that State Farm inappropriately depreciated payments made to policyholders for property damages. But the panel found there was no commonality in the class, reversing certification and ordering Laughrey to dismiss the case.
Dan Gustafson, founding member of Gustafson Gluek in Minneapolis, who argued on behalf of the plaintiffs on appeal, said he was “extremely disappointed” with the ruling and was evaluating whether to petition the Eight Circuit for en banc review.
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