Suit V. Farmers Over Alleged Insurance Bias Revived

Law360, New York (May 13, 2009, 12:00 AM EDT) -- Citing two critical errors by the lower court, a federal appeals court has breathed new life into a putative class action alleging that Farmers Group Inc. charges minorities higher premiums for homeowners insurance than it charges their white counterparts.

Two of the three judges for the U.S. Court of Appeals for the Ninth Circuit found fault Tuesday with the lower court’s interpretation of the plaintiff’s claims, as well as its perceived conflict between Texas insurance law and the Federal Housing Act.

Lead plaintiff Patrick O. Ojo...
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