STORY FROM: Reinsurance & Arbitration

Motion for Class Certification Denied in Calif. Federal Applied Underwriters Action

SACRAMENTO, Calif. — A California federal judge has denied a motion to certify a class of employers who participated in Applied Underwriters’ (AUI) workers’ compensation insurance programs, finding that the substantial individual damages at stake favor individual actions.

In a Jan. 28 order, Judge William Shubb of the U.S. District Court for the Eastern District of California further found that a class action would be inconvenient for employers that are located far from the federal forum.

AUI sold a workers’ compensation insurance program known as “EquityComp” to Shasta Linen Supply Inc. and other California employers. AUI required the employers to ...

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