Faegre Baker Daniels client American Family won a dispositive victory in the United States Court of Appeals for the Eighth Circuit when the court affirmed summary judgment in its favor against a putative nationwide class action.
Plaintiffs had alleged that American Family Insurance overestimated how much it would cost to replace homes in order to charge more for homeowner’s insurance policies. They sought to certify a nationwide class action of all homeowners who had allegedly been overcharged, asserting contract and deceptive practices claims. Representing American Family, FaegreBD opposed class certification and moved for summary judgment. We argued that the evidence showed no overestimate of Plaintiffs’ replacement costs, no misrepresentation made to them, and no duty by American Family to make “reasonable” replacement cost estimates. The United States District Court for the District of Minnesota agreed. It entered summary judgment on all claims for American Family and denied plaintiffs’ motion for class certification as moot. On appeal, the Eighth Circuit affirmed on all counts, ending the case with a complete defense victory for American Family.