PHH Ducks Part Of Force-Placed Insurance Kickback Suit

Law360, New York (January 2, 2013, 2:23 PM EST) -- A New Jersey federal judge on Monday trimmed an unjust enrichment claim from a proposed class action against PHH Mortgage Corp. over its alleged practice of taking kickbacks and commissions from force-placed insurance providers, but left intact some breach of contract and consumer fraud claims.

Plaintiff Patrick Gallo is challenging the PHH Corp. subsidiary’s practice of purchasing force-placed hazard insurance from a provider in arrangements where PHH benefits financially, but U.S. District Judge Noel L. Hillman said Gallo’s unjust enrichment claim is prohibited under Pennsylvania law...
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