Shady Grove Orthopedic Associates, P.A. v. Allstate Insurance Co.

When Petitioner brought an insurance claim against Allstate Insurance, Allstate paid the claim, but refused to pay the interest due under New York state law. Shady Grove filed a class action to recover the interest. U.S. District Court held that it lacked jurisdiction pursuant to N. Y. Civ. Prac. Law Ann. §901(b). The U.S. Supreme Court held the New York law does not preclude a federal court sitting in diversity from entertaining a class action under Fed. R. Civ. Proc. 23. www.metnews.com.
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