Wednesday, March 24, 2010

Northern District Certifies “Early Payment” Class in Miletak v. Allstate Ins. Co.

On March 5, 2010, District Court Judge, James Ware, certified a California UCL and unjust enrichment class brought against defendants Allstate Insurance Company and Allstate Indemnity Company in Miletak v. Allstate Ins. Co., 2010 U.S. Dist. LEXIS 26913 (N.D. Cal. Mar. 5, 2010). Plaintiff’s proposed action alleges that defendants were unjustly enriched by defendants’ alleged use of “misleading bills to obtain payment of insurance premiums thirty or more days before the renewal date of insurance policies between the parties.” See id., at 1-2. Under the plaintiff's theory, class members would be entitled to the value of the interest earned over the thirty days defendants had use of premium payments before they were due – a remedy the Court found “restitutionary in nature, and therefore recoverable under the UCL.” See id., at 21. As reasoned by the Court, certification was appropriate insofar as plaintiffs’ claims were “based on identical statements received during a common time period and allege a uniform type of harm….” See id., at 34-35.

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