The Pennsylvania Supreme Court’s “seismic” decision to invalidate the household exclusion as a means of getting around providing stacking coverage should apply retroactively, a federal judge has ruled in a decision that could impact several class action lawsuits pending in the Keystone State.

Earlier this month, U.S. District Judge Mark Kearney of the Eastern District of Pennsylvania ruled in Butta v. Geico that the Supreme Court’s January decision in Gallagher v. Geico should apply retroactively. In Gallagher the justices ruled 5-2 that a household exclusion in a Geico policy violated the Motor Vehicle Financial Responsibility Law because it acted as a “de facto waiver” of stacked coverage.

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