Court Applies Local Controversy Exception in Remanding Insurance Case

BEAUMONT, Texas - A federal judge applied a "common sense" analysis in determining the citizenship of putative class members and remanded an insurance coverage lawsuit after concluding that it fit within the local controversy exception to the Class Action Fairness Act of 2005. Joseph v. Unitrin Inc., et al., No. 1:08-CV-077 (E.D. Texas).

Judge Marcia A. Crone of the U.S. District Court for the Eastern District of Texas said in her Aug. 11 order that common sense dictates that a lawsuit brought on behalf of Texas policyholders would include more than the two-thirds minimum of in-state residents for the exception …