Class Action Over Allegedly Bogus Insurance Product Should Not Have Been Blocked, 2nd Circuit Says
District Judge Paul Gardephe conflated the merits of the claims with the issue of standing on an issue in a New York State insurance law that isn't settled by state courts yet.
April 12, 2018 at 04:40 PM
3 minute read
A U.S. district judge mistakenly conflated the injury requirement to have standing with the issue of the case's merits in a suit over allegedly illegal insurance, the U.S. Court of Appeals for the Second Circuit said Thursday.
The panel, composed of Circuit Judges Rosemary Pooler, Richard Wesley and Peter Hall, vacated the March 2015 dismissal by U.S. District Judge Paul Gardephe of a class action brought by former holders of an accidental disability and medical expense insurance policy. The defendants—insurance companies, banks, and credit card companies—pitched the insurance to credit card holders, even as they allegedly knew the insurance policy was bogus from the start.
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