Texas Court Puts $100 Million Farmers Settlement in Doubt By Decertifying Class

AUSTIN, Texas - Texas' Third District Court of Appeal said Jan. 21 that state law does not allow the attorney general to bypass class certification requirements in bringing a class action against homeowners' insurers over coverage issues. Lubin v. Farmers Group, et al., No. 03-03-00374-CV (Texas App., 3rd Dist.).

The Court of Appeal reversed a lower court's class certification order, which preceded acceptance of a $100 million settlement between the state and Farmers Group and related insurers.

The court ordered the 261st Judicial District in Travis County to re-consider class certification in light of its opinion that the Texas Insurance …