Law School Case Brief
Shady Grove Orthopedic Assocs., P.A. v. Allstate Ins. Co. - 293 F.R.D. 287 (E.D.N.Y. 2013)
Rule 23 of the Federal Rules of Civil Procedure governs the certification of a class for the purposes of a class action. A party seeking class certification must establish by a preponderance of the evidence that each of the requirements set forth in Rule 23 has been met.
Plaintiff Shady Grove Orthopedic Associates, P.A. (Shady Grove) brought this class action against defendant Allstate Insurance Company (Allstate), seeking payment of statutory interest penalties mandated by the New York State Insurance Law and accompanying regulations. Shady Grove filed a petition seeking certification of the class of all health care providers who submitted claims for first-party-no-fault benefits since a specific date, pursuant to Rule 23(b)(3) of the Federal Rules of Civil Procedure.
Is there sufficient legal justification to grant the motion for class certification of plaintiff?
The court held that since plaintiff has shown by a preponderance of the evidence that the requirements of Rules 23(a) and 23(b)(3) are satisfied with respect to the claim that defendant has violated N.Y. Ins. Law § 5106 and 11 N.Y.C.R.R. § 65-3.9 by failing to pay no-fault claims within the statutory time period and failing to pay the interest accrued as a result to plaintiff and other class members, the motion to certify the class was granted.
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