National Class Action Status Granted in Conseco Life Insurance Case
By Petra Pasternak
October 26, 2010
Instead on alleging fraud based on state consumer fraud statutes this article explains that this class action against Conseco relies on a breach of contract claim for the life insurance carrier’s alleged failure to honor the terms of similar life insurance policies. The article describes the Federal Judge Ilston’s decision to approve class certification because Judge Ilston concluded contract law is subtantially the same in throughout the different States:
The plaintiffs alleged that Conseco was breaching nearly 10,000 “LifeTrend” insurance policies … including improper premium charges and improper deductions from policyholders’ accounts — could result in losses of tens of thousands of dollars per policyholder. …
Conseco tried to smack down class certification … But Illston wrote that Conseco was exaggerating any variations when it came to breach-of-contract.
“Contrary to Conseco’s representations, several courts have recognized that the law relating to the element of breach does not vary greatly from state to state,” Illston wrote.
This trend to to allow use of contract law to obtain national class certification is a breath of fresh air. Class actions are the only way to protect against this type of mass breach of contract by a large insurer. Absent a national class action many victims in smaller states would obtain no redress.
You can read the entire article by clicking here.
Our Oak Brook, Illinois breach of contract law firm handles individual and class action predatory lending, unfair debt collection, lemon law and other consumer fraud cases that government agencies and public interest law firms such as the Illinois Attorney General may not pursue. Class action lawsuits our law firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. The Chicago consumer lawyers at Lubin Austermuehle are proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to consumer fraud and consumer rip-offs, and in the right case filing consumer protection lawsuits and class-actions you too can help ensure that other consumers’ rights are protected from consumer rip-offs and unscrupulous or dishonest practices.
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