U.S. Supreme Court Denies Review of Punitive Damages Award in Class Action Against Farmers Insurance

January 23rd, 2012

The Supreme Court has declined to review an $8 million punitive damages verdict against Farmers Insurance Company of Oregon in a class action brought by policyholders, in Farmers Insurance Co v. Strawn. The Oregon courts found that Farmers failed to comply with Oregon personal injury protection (PIP) law and its policy contract by failing to pay all reasonable medical expenses it was required to pay. CCL’s Robert S. Peck, counsel of record for the plaintiffs/respondents, opposed review of Farmers’ petition, which asserted in part that it was denied due process because plaintiffs proved the reliance element of fraud on a class-wide rather than individualized basis. Petitioners were represented by Mr. Theodore J. Boutros of Gibson Dunn.

U.S. Supreme Court Finds Arbitration Can Be Required Under CROA

January 10th, 2012

In CompuCredit Corp. v. Greenwood, 132 S. Ct. 665 (2012), the Supreme Court ruled that claims arising under the federal Credit Repair Organizations Act are subject to arbitration pursuant to a valid arbitration agreement. In an amicus brief for the American Association for Justice, filed in support of respondents, John Vail of CCL argued that such claims should not be subject to arbitration. The amicus brief was cited favorably in Justice Ginsburg’s dissent.