Sandwich Chef of Texas, Inc. v. Reliance National Indemnity Insurance Co. - Fifth Circuit U.S. Court of Appeals

Sandwich Chef of Texas, Inc. v. Reliance National Indemnity Insurance Co.

By Fifth Circuit U.S. Court of Appeals

  • Release Date: 2003-01-21
  • Genre: Law
Our rating: 5/5 stars

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Sandwich Chef of Texas, Inc. v. Reliance National Indemnity Insurance Co. by Fifth Circuit U.S. Court of Appeals epub - ebook - audiobook

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Fraud actions that require proof of individual reliance cannot be certified as Fed. R. Civ. P. 23(b)(3) class actions because individual, rather than common, issues will predominate. The district court certified a nationwide Rule 23(b)(3) class in this RICO fraud action based on alleged overcharging of workers compensation insurance premiums. It did so by eliminating, on substantive grounds, plaintiff-specific issues of reliance and causation. We hold that the district court erred as a matter of law in doing so and thus abused its discretion in certifying this case as a class action, and we reverse.

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