A recent Iowa federal court decision illustrates the importance
of proper class definition—and, in particular, of
ensuring that only injured parties are included in the class.
Inclusion of uninjured class members can result not only in an
overbroad class, but also in a successul numerosity challenge.
In Copp v. American Enterprise Services
Company, a Southern District of Iowa judge denied a motion
to certify a class of the defendants' former insurance agents
who were and are subject to two practices that allegedly constitute
a breach of contract, breach of the duty of good faith and fair
dealing, and various other violations of law. One practice involves
the use of an "orphans list" of policyholders whose
agents have left the company. According to the complaint, the
orphans list is disseminated to sales managers, and if a
policyholder on the list is sold a replacement policy, the
defendants terminate the prior policy, depriving the former agent
of renewal commissions
