Shady Grove is out (SCOTUS): CPLR § 901(b) v. FRCP 23

You might recall the Shady Grove case, Shady Grove Orthopedic Associates, P.A. v. Allstate Ins. Co. The issue there was whether a class action to collect overdue interest (a penalty) could be maintained in Federal Court under FRCP 23, when CPLR 901(b) prohibits a class action to “recover a penalty.”  The District Court said no, the 2nd Circuit affirmed.  Now, the Supreme Court reverses.

It was argued not too long ago, and now, we have a decision (5-4) (2010 WL 1222272): It’s fine, the class action can proceed in federal court.

Until I get a chance to go through the decision, you can have a look at my earlier post on the case, or head over to the SCOTUSblog to read an excellent summary of today’s decision.

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