Farmers Insurance Co., et al., v. Mark Strawn

Whether the Due Process Clause prohibits a state court from relieving class members of their burden to prove a longstanding and fundamental element of liability—here, individual reliance in a fraud claim—thereby depriving the defendant of its right to assert an individualized defense to a class action.

NCLC urged the U.S. Supreme Court to grant certiorari to decide whether the Due Process Clause prohibits a state court from changing the longstanding common law requirements for proving fraud on an individual basis in order to certify a class action. In this case, the Oregon Supreme Court upheld the certification of a class action alleging that the defendant insurance company somehow committed fraud by evaluating the “reasonableness” of medical charges submitted for payment under auto insurance policies by comparing those submitted charges to a database of historical charges for the same medical procedure in the same area. In its amicus brief, NCLC argued that the Due Process Clause bars state courts from deviating from established substantive and procedural rules to accommodate class actions. NCLC described the growing and pervasive trend of state courts watering down claim requirements in order to certify class actions, increasing the pressure on businesses to settle even frivolous lawsuits.        

The Supreme Court denied certiorari.

Amicus brief filed 11/14/2011. Cert. denied 1/23/12.