Developments In Law, Factual Discovery Lead Federal Judge To Decertify Class Action

In Campbell v. First American, a federal judge in Maine has issued a ruling decertifying a class action involving claims that First American Title Insurance Co. overcharged refinance customers for their title insurance.

As members of the financial services industry may be all too aware, class certification is a critical point in litigation. A decision to grant class certification places great pressure on the defendant to settle — often without regard for the actual merits of the case. On the other hand, a certification denial can be the "death knell" of the case because the claim of the named plaintiff alone may be too small to justify the expense of going forward. In general, a court will certify a class if it is persuaded that many related individual claims can be decided together, with a key element being the predominance of "common" issues. Class treatment is generally inappropriate where resolution of the claims would require individualized review.