Class Certification Upheld

June 25, 2014

In this class action concerning certain practices of a life insurance settlement company, the Court of Appeals upheld a decision to certify the case as a class action.  The defendants challenged the decision on several grounds, including that the trial court purportedly failed to consider “the res judicata risks” of certifying a class action on absent class members.  The Court, however, rejected this argument, pointing to facts in the record showing that the trial court considered the other pending lawsuits.  The Court also pointed to the certification order which specifically limits the class to the narrow focus of the lawsuit and which directed that class members should be given notice of their right to opt out of the class.

Life Partners, Inc. v. McDermott