CALIFORNIA CLASS ACTION LAW

MDL Panel Denies Centralization in In re Diversified Lending Group, Inc., Securities Litigation

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The U.S. Judicial Panel on Multidistrict Litigation denied centralization in In re Diversified Lending Group, Inc., Securities Litigation, — F.Supp.2d —-, 2010 WL 3270231 (U.S. Jud. Pan. Mult. Lit. Aug. 17, 2010).  Common defendant Jackson National Life Insurance Company moved for coordinated or consolidated pretrial proceedings of litigation in the Central District of California.  This litigation consists of five actions pending in three districts: three actions in the Central District of California and one action each in the Middle District of Florida and the Western District of Michigan.

The Panel concluded that common questions of fact predominated “as all actions arise out of an alleged fraud perpetrated by Diversified Lending Group.” Id. *1.  But only one of the actions contained a demand for class certification and it is already pending in the Central District of California. “Consequently, the Panel sees virtually no possibility for inconsistent pretrial class certification rulings.” Id. Read the rest of this entry »

Judge William Alsup of Northern District Rejects Preemption Argument in Federal Flood Insurance for Home-Equity Line Class Action

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In Hofstetter v. Chase Home Finance, LLC, No. C 10-01313 WHA, 2010 WL 3259773 (N.D. Cal. Aug. 16, 2010) (slip. op.), a putative class action involving federal flood insurance requirements for home-equity lines of credit, defendants JP Morgan Chase Bank, N.A. and Chase Home Finance, LLC moved to dismiss all federal and state claims alleged.

Defendants argued that they were required under the National Flood Insurance Act of 1968 (“NFIA”) to purchase $175,000 worth of flood insurance in connection with plaintiff Sheila Hofstetter’s home-equity line of credit, resulting in plaintiff being billed $1,575 in insurance premiums. Read the rest of this entry »