Weiss v. La Suisse, Societe D'assurances Sur La Vie

226 F.R.D. 446, 2005 U.S. Dist. LEXIS 3819, 2005 WL 589331
CourtDistrict Court, S.D. New York
DecidedMarch 3, 2005
DocketNo. 01 Civ. 1006(CM)
StatusPublished
Cited by14 cases

This text of 226 F.R.D. 446 (Weiss v. La Suisse, Societe D'assurances Sur La Vie) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weiss v. La Suisse, Societe D'assurances Sur La Vie, 226 F.R.D. 446, 2005 U.S. Dist. LEXIS 3819, 2005 WL 589331 (S.D.N.Y. 2005).

Opinion

ORDER AND DECISION OF THE COURT GRANTING MOTION FOR CLASS CERTIFICATION IN PART AND DENYING MOTION OF CLASS CERTIFICATION IN PART

McMAHON, District Judge.

Plaintiffs have made a motion for class certification pursuant to Rule 23 of the Federal Rules of Civil Procedure. Defendant La Suisse, Societe D’Assurances Sur La Vie (“La Suisse”) opposes the same. For the reasons stated below, the motion is granted in part and denied in part.

Facts

The district court must accept all of the allegations in the pleadings as true on a motion for class certification, and avoid conducting a preliminary inquiry into the merits. See, e.g., Dunnigan v. Metropolitan Life Ins. Co., 214 F.R.D. 125, 133 (S.D.N.Y.2003). According to the Complaint,1 the facts are as follows:

La Suisse is a life insurance company, organized and doing business in Switzerland, authorized to issue individual life insurance policies that are valid worldwide. Complaint [448]*448(“Cplt.”) 1T1Í11, 13, 14. Plaintiffs are members of New York Orthodox and Hassidie Jewish communities. Cplt. K 15. From 1989 to 1994, defendant marketed and sold insurance policies in New York through its authorized representative in Monroe, NY. Cplt. 1116. Plaintiffs bought certain insurance policies from Defendant’s representative described as “mixed life” insurance policies which contained marriage event clauses. Cplt. 111119, 20. These clauses provided for advance payment of benefits or “insured capital” in the event of marriage prior to the insurance termination dates stated in each policy. Cplt. K20. Approximately 7,000 of these “mixed life” policies were sold in the United States — mainly in the Hassidie communities of Kiryas Joel, Monsey, and Brooklyn, New York. Cplt. 1121.

Each of the “mixed insurance” policies were issued on the life of a child and contained a marriage event clause that triggered full acceleration of the face amount of the policy prior to the maturity date. Cplt. 1124. Most of these policies contained Final Maturity Dates of 15 or 16 years after the stated Beginning of Contract Date. Cplt. 1123.

Under these “mixed life policies” benefits were payable in one of three ways: (1) in the event the insured survived to the “End of Contract” date, the face amount was due; (2) in the event the insured dies before the “End of Contract” date, the face amount of the policy was due; and (3) in the event the insured married before the “End of Contract” date, the face amount of the policy was due. Cplt. 1125. The face amount of each policy is 50,000 Swiss Franks or 100,000 Swiss Franks. Cplt. 1129.

Plaintiffs allege that defendant failed and refused to pay marriage-event benefits due under the policies; failed to confirm coverage under the policies; failed to acknowledge correspondence from policyholders, beneficiaries or assignees of interests under the policies; failed to reinstate policies in accordance with policy terms; wrongly and intentionally allowed policies to lapse without acceptance of duly-tendered premiums under the policy terms; failed and refused to honor loan requests in accordance with the terms and conditions of the policies; and failed to acknowledge proof of marriage supplied by policyholders, beneficiaries and/or assignees of interests under the policies. Cplt. 1128.

Plaintiffs further allege that defendant violated 42 U.S.C. § 1981 by intentionally discriminating against plaintiffs and the class based upon their ethnic and racial identity. Cplt. 1164.

Prior History

In early 2004, a jury trial was held in Kalman Weiss v. La Suisse, 97 Civ. 1352(CM)(MDF), (hereinafter “La Suisse /”), in which forty similarly situated plaintiffs sued La Suisse, asserting the same causes of action plaintiffs have asserted. Some of the individual plaintiffs prevailed on their contract claims, but defendants prevailed on all other claims, including the claim of racial/ethnic discrimination. (This Court had previously granted summary judgment on certain issues relating to the § 1981 claim, thereby narrowing the issues for trial.)

On June 7, 2001, plaintiffs moved in La Suisse I, pursuant to Fed. R. Civ. P. 15(a) for leave to file a Second Amended Class Action Complaint, which for the first time, purported to assert the claims in La Suisse I on behalf of a class. They also moved pursuant to Fed. R. Civ. P. 23(a) and 23(b)(3) for an order certifying and maintaining the action on behalf of “all United States residents who purchased mixed life insurance policies issued by Defendant La Suisse with marriage-event clauses between January 1, 1989 through June 30, 1994 (the ‘Class Period’) and were damaged thereby.” Weiss v. La Suisse, 161 F.Supp.2d 305, 319 (S.D.N.Y. 2001). The motion for leave to file a second amended class action complaint was denied because it was untimely filed on what we all thought, after four-plus years of arduous litigation, was the eve of trial. After the trial was put off, due to the pendency of numerous complicated motions in limine, plaintiffs did not try anew to have La Suisse I certified as a class action. Instead, they filed this action (which I will call La Suisse III, for reasons that will soon become apparent), in 2003 in the United States District Court for the Eastern District of New York.

[449]*449On February 8, 2001, a separate complaint was filed in this court, captioned Agi Weiss, Individually and as Executrix of the Estate of Pal Weiss v. La Suisse Societe d’ Assurance sur la Vie, 01 Civ. 1006(CM) (It is, of course, La Suisse //)• It alleged the same causes of action against La Suisse, but on behalf of a different plaintiff. No motion was ever made to consolidate La Suisse I and II.

La Suisse III, formerly pending before Judge Garaufis, was sent to Judge Irrizarry when she joined that court, and was thereafter transferred to this court. It was consolidated with La Suisse II by order of this court on January 7, 2005.

Discussion

Plaintiffs now ask the court to certify a class under Fed.R.Civ.P. 23(b)(3), to be defined as: “All United States citizens who purchased mixed life insurance policies issued by Defendant La Suisse Societe D’Assuranees Sur La Vie with marriage-event clauses between January 1, 1989 and June 30, 1995 and were damaged thereby.” See Notice of Motion for Rule 23 Class Certification at 2. Excluded from the proposed class are Defendant, any firm, trust, corporation or entity that is an affiliate of Defendant, the legal representatives, heirs, successors-in-interest or assigns of any such excluded person or entity and all persons named as plaintiffs in the action entitled Kalman Weiss, As Assignee, et al. v. La Suisse, Societe D’Assurances Sur La Vie, 97 Civ. 1352(CM).2 Id. Standards

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Bluebook (online)
226 F.R.D. 446, 2005 U.S. Dist. LEXIS 3819, 2005 WL 589331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weiss-v-la-suisse-societe-dassurances-sur-la-vie-nysd-2005.