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New case at high court aims to blunt class actions


February 16. 2013 8:50PM
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(AP) The Supreme Court will consider an insurance company's plea to move a class-action lawsuit from state court to a more business-friendly federal court.


The justices on Friday agreed to hear an appeal from The Standard Fire Insurance Co. of Hartford, Conn. The case involves the reach of a 2005 federal law that allows defendants in class-action lawsuits to transfer disputes involving more than $5 million to a federal court from state courts that often favor plaintiffs.


Standard Fire is being sued in Arkansas by a homeowner who complained the company did not pay enough to repair hail damage.


A federal appeals court ruled that the suit could remain in state court because the homeowner is seeking less than $5 million for himself and other Arkansas homeowners insured by Standard Fire.


Associated Press


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