District Court Divests Itself of Jurisdiction in CIGNA Class Action Settlement

Miller v. Connecticut Gen. Life Ins. Co.

(S.D. W. Va. Sept. 11, 2009)

The plaintiff filed suit against CIGNA to enforce an arbitration award for life insurance benefits. The plaintiff, a West Virginia resident, was a member of a settlement class in a class action brought against CIGNA in U.S. District Court for the Central District of California. The litigation involved alleged misrepresentations made by CIGNA and its agents to purchasers of life insurance proceeds. A Final Order from that action provided that the court would retain jurisdiction over all matters related to the enforcement and interpretation of the settlement agreement, which provided for an alternate dispute resolution process. The Final Order was entered in 1997.

The plaintiff and CIGNA participated in an arbitration in West Virginia , after which the plaintiff was awarded “an insurance product consistent with the Agent’s representation.” The plaintiff then filed suit to enforce the arbitration award. CIGNA moved to dismiss, arguing that the Final Order deprived the West Virginia federal court of jurisdiction. The court rejected CIGNA’s position, finding that the California court divested itself of jurisdiction in a subsequent order issued in 2006. The court held that the 2006 order was not limited to actions by certain claimants, but rather applied to all actions brought by class members. 

For a copy of the decision, click here

 

Carrie P. Appler and Joanna M. Roberto

 

https://www.goldbergsegalla.com/attorneys/Appler.html

https://www.goldbergsegalla.com/attorneys/Roberto.html