Franjo, Inc. v. American International Group, Inc. et al

Filing 21

TRANSFER ORDER re: pldg. ( 1 in MDL No. 2519) Transferring 3 action(s) to Judge Robert W. Gettleman in the N.D. Illinois.Signed by Judge John G. Heyburn II, Chairman, PANEL ON MULTIDISTRICT LITIGATION, on 4/7/2014. Associated Cases: MDL No. 2519, CAN/4:13-cv-04685, ILN/1:13-cv-08250, NJ/2:13-cv-05990, NYS/1:13-cv-07137 (DP)

UNITED STATES JUDICIAL PANEL
on
MULTIDISTRICT LITIGATION

IN RE: AIG WORKERS COMPENSATION INSURANCE
POLICYHOLDER LITIGATION

MDL No. 2519

TRANSFER ORDER

Before the Panel:* Pursuant to 28 U.S.C. § 1407, moving defendants (hereafter referred to
as the “AIG Defendants”)1 move for centralization of this litigation in the Northern District of Illinois
or, alternatively, the District of New Jersey. This litigation currently consists of four actions pending
in the Northern District of California, the Northern District of Illinois, the District of New Jersey, and
the Southern District of New York, as listed on Schedule A.2 Plaintiffs in each of the four actions
support centralization in the Northern District of Illinois.3
On the basis of the papers filed,4 we find that these actions involve common questions of fact,
and that centralization in the Northern District of Illinois will serve the convenience of the parties and
witnesses and promote the just and efficient conduct of the litigation. All of the actions involve
factual questions surrounding an alleged scheme by the AIG Defendants to underreport the amount
of workers compensation insurance premiums they collected to state insurance departments.
Purportedly as a result, the plaintiff workers compensation insurance policyholders were overcharged

*

Judges Marjorie O. Rendell and Sarah S. Vance took no part in the decision of this matter.

1

The AIG Defendants are current and former insurance company subsidiaries of American
International Group, Inc. (AIG). They include: AIG Risk Management Inc.; AIU Insurance
Company; American Fuji Fire and Marine Insurance Company; American Home Assurance Company;
American International Overseas Limited; Chartis Property Casualty Company n/k/a AIG Property
Casualty Company; Commerce and Industry Insurance Company, Inc.; Granite State Insurance
Company; Illinois National Insurance Company; The Insurance Company of the State of
Pennsylvania; National Union Fire Insurance Company of Pittsburgh, PA; New Hampshire Insurance
Company; and Yosemite Insurance Company.
2

The parties have notified the Panel of three related actions pending in the Middle District
of Georgia, the Eastern District of Missouri, and the Eastern District of Pennsylvania. These and any
other related actions are potential tag-along actions. See Panel Rule 7.1.
3

According to the AIG Defendants, defendant Maurice R. Greenberg, the only party not to
respond to the motion to centralize, does not oppose the requested relief.
4

The parties waived oral argument.

-2for certain surcharges and fees assessed by the states. All of the plaintiffs assert claims against the
AIG Defendants for racketeering and conspiracy in violation of 18 U.S.C. § 1962, violation of various
state consumer protection statutes, negligent misrepresentation, and unjust enrichment. These actions
are primarily state-wide class actions, but one of the actions involves a putative multi-state class of
policyholders that overlaps with the putative classes asserted in the other actions. Centralization will
eliminate duplicative discovery; prevent inconsistent pretrial rulings, including with respect to class
certification; and conserve the resources of the parties, their counsel, and the judiciary.
We are persuaded that the Northern District of Illinois is the most appropriate transferee
district for pretrial proceedings in this litigation. The Northern District of Illinois is a centrally located
and convenient forum. All the parties advocate for assignment of this litigation to the Honorable
Robert W. Gettleman, and we concur that he is a logical choice to serve as the transferee judge here.
Judge Gettleman has extensive familiarity with the allegations underlying this litigation as a result of
his presiding over two class actions brought against the AIG Defendants by their competitors, which
involved allegations of injury based upon the same underreporting of workers compensation insurance
premiums to state authorities. Accordingly, Judge Gettleman will be familiar with the allegations in
this litigation, the workers compensation insurance industry and the regulatory regimes surrounding
that industry, and the potential discovery and pretrial issues that could arise with respect to the AIG
Defendants’ workers compensation business. Moreover, by selecting Judge Gettleman to preside
over this matter, we are selecting a jurist with multidistrict litigation experience, but who is not
presently presiding over such a litigation.
IT IS THEREFORE ORDERED that pursuant to 28 U.S.C. § 1407, the actions listed on
Schedule A and pending outside the Northern District of Illinois are transferred to the Northern
District of Illinois and, with the consent of that court, assigned to the Honorable Robert W.
Gettleman for coordinated or consolidated pretrial proceedings.

PANEL ON MULTIDISTRICT LITIGATION

__________________________________________
John G. Heyburn II
Chairman
Charles R. Breyer
Ellen Segal Huvelle

Lewis A. Kaplan

IN RE: AIG WORKERS COMPENSATION INSURANCE
POLICYHOLDER LITIGATION

MDL No. 2519

SCHEDULE A

Northern District of California
FRANJO, INC. V. AMERICAN INTERNATIONAL GROUP, INC., ET AL.,
C.A. No. 4:13-04685
Northern District of Illinois
BEACH MEDICAL MARKETING, INC. V. AMERICAN INTERNATIONAL
GROUP, INC., ET AL., C.A. No. 1:13-08250
District of New Jersey
JPS COLLISION, INC. V. AMERICAN INTERNATIONAL GROUP, INC.,
ET AL, C.A. No. 2:13-05990
Southern District of New York
JAYARVEE, INC., ET AL. V. AMERICAN INTERNATIONAL GROUP, INC.,
ET AL., C.A. No. 1:13-07137