The Supreme Court loses in Allstate
Not very good for Allstate, sound, especially now that the Supreme Court ruled that the suit in Federal Court could continue. The problem that confronted the Supreme Court was one of a potential conflict of rules. In New York a class action lawsuit is denied, the discharge in the form of legal punishment (in this case interest). SCOTUS came to the conclusion that the law is procedural and not substantive excluded only the claim in NY State courts, and because there is a diversity case (parties from different States) it could continue in Federal Court.
Questions is really you, Allstate was secured only with claims or if they were aware of the New York rule and it is a standard priority massive class size to avoid payment. Are the amounts for any claim probably small, which explains why Allstate may have refused to pay out of interest, who was its refusal on these small amounts in question? And with the class action bar for legal fine recovery they probably thought, be spelled out in New York City. While the recovery may be limited, some class action lawsuits like this important massive firms in line shall be kept. Others are, like for example the lawnmower case I only in blogs about, ridiculous. This case is a warning of Allstate and everyone else who is insurance code to followed, not lightly unless eight are left. We will see how this case plays out now that it has passed pattern to the highest court.
Here is the original complaint, which claimed the Allstate bad behavior and unlawful denial-of-interest.
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