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Elgindy v. AGA Serv. Co.

Elgindy v. AGA Serv. Co.

United States District Court for the Northern District of California

March 29, 2021, Decided; March 29, 2021, Filed

Case No. 20-cv-06304-JST

Opinion

ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS

Re: ECF No. 16

Before the Court is Defendants' motion to dismiss. ECF No. 16. The Court will grant the motion in part and deny it in part.

I. BACKGROUND

Plaintiffs Adam Elgindy and Julianne Chuanroong bring this putative class action on behalf of themselves and other consumers who purchased an event ticket insurance policy or a trip, travel, or flight insurance policy from Defendants during the class period. Complaint ("Compl."), ECF No. 1 ¶¶ 5, 6, 80. Plaintiffs allege that Defendants' practice of bundling a non-optional assistance services fee with the sale of these insurance policies, and not fully disclosing the inclusion of that fee, constitutes unlawful, unfair, and deceptive conduct. Id. ¶ 1.

A. Factual Background [*2] 

Defendants are all involved in the sale of insurance for event tickets and travel arrangement purchases. Id. ¶ 2. Collectively, they are the dominant providers of event ticket insurance in California, and are the main provider of insurance on the website Ticketmaster.com. Id. ¶ 23. They are also the largest providers of trip and travel insurance in California and the United States. Id. ¶ 33. Defendants Jefferson Insurance Company and BCS Insurance Company underwrite the insurance policies at issue. Id. ¶¶ 8-9. Defendant AGA Services Co. d/b/a Allianz Global Assistance ("AGA") is a registered agent and the registered administrator for insurance business transacted by Jefferson and BCS in California. Id. ¶ 7. As Jefferson's and BCS's agent, AGA is responsible for obtaining regulatory approval of the insurance policy products, as well as the marketing and sales of those products. Id. ¶ 22.

When a consumer purchases an event ticket on Ticketmaster.com, she is presented with an offer to purchase insurance. Id. ¶ 24. She is given only one vendor option to insure her purchase. Id. The same is true when a consumer purchases airfare and similar travel fares, including from websites for Hawaiian [*3]  Airlines, American Airlines, and Jet Blue Airways. Id. ¶¶ 33-34.

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2021 U.S. Dist. LEXIS 61269 *; 2021 WL 1176535

ADAM ELGINDY, et al., Plaintiffs, v. AGA SERVICE COMPANY, et al., Defendants.

Subsequent History: Later proceeding at Elgindy v. Aga Serv. Co., 2021 U.S. Dist. LEXIS 155487, 2021 WL 3602815 (N.D. Cal., Aug. 13, 2021)

Request granted, in part, Request denied by, in part Elgindy v. Aga Serv. Co., 2021 U.S. Dist. LEXIS 211772 (N.D. Cal., Nov. 2, 2021)

CORE TERMS

consumer, ticket, Plaintiffs', allegations, premium, unfair, offers, prong, travel, fraudulent, insurance policy, labeling, injunctive relief, purchases, insurance premium, advertising, coverage, trip, misrepresentation, misleading, deceptive, insure, non-insurance, common-law, equitable, deceived, economic injury, motion to dismiss, fraud claim, websites

Business & Corporate Compliance, Industry Practices, Rate Regulation, Approval Process, Insurance Law, Judicial Review, Constitutional Considerations, Insurance Company Operations, Policy Forms Regulation, Approval of Forms, Rate Hearings, Company Representatives, Agents, Licensing Requirements, Business & Corporate Law, Agency Relationships, Types, Insurance Agents & Insurance Companies, Regulators, State Insurance Commissioners & Departments, Rules & Regulations, Evidence, Burdens of Proof, Allocation, Civil Procedure, Defenses, Demurrers & Objections, Motions to Dismiss, Failure to State Claim, Pleadings, Complaints, Requirements for Complaint, Heightened Pleading Requirements, Fraud Claims, Mistake, Justiciability, Standing, Injury in Fact, Constitutional Law, Case or Controversy, Elements, Antitrust & Trade Law, Trade Practices & Unfair Competition, State Regulation, Claims, The Judiciary, Standing, Consumer Protection, False Advertising, State Regulation, Deceptive & Unfair Trade Practices, Scope, Deceptive Labeling & Packaging, Torts, Business Torts, Unfair Business Practices, Unfair Trade Practices Acts, Computer & Internet Law, Privacy & Security, Likelihood of Confusion, Factors for Determining Confusion, Comparison of Advertising, Fraud & Misrepresentation, Actual Fraud, Nondisclosure, Contracts Law, Remedies, Restitution, Preliminary Considerations, Equity, Adequate Remedy at Law, Damages, Punitive Damages, Types of Damages, Punitive Damages, Aggravating Circumstances, Availability, Corporations, Employers, Vicarious Liability, Ratification