The U.S. Supreme Court recently granted certiorari in Shady Grove Orthopedic Associates, P.A. v. Allstate Ins. Co.1 from the U.S. Court of Appeals for the Second Circuit.2
Shady Grove Orthopedic Associates (a Maryland corporation) and Sonia E. Galvez3 brought a class action against Allstate (an Illinois corporation) in the Eastern District of New York4 for unpaid interest on no-fault claims pursuant to a New York insurance policy.5 Those claims were paid, but for the interest. Shady Grove argued that it could get into federal court through 28 U.S.C. §1332(d)(2)(A), which gives the federal courts original jurisdiction in a class action where the amount in controversy is more than $5 million and diversity exists, and FRCP 23 allows class certification for the relief requested.
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