On April 19, 2019, the Eleventh Circuit threw out a putative class action seeking declaratory relief against GEICO, citing the lead plaintiff’s lack of standing.  The Eleventh Circuit’s decision was based on the long-settled rule that a party seeking declaratory relief must allege a reasonable expectation of future injury. 

• Gerber filed suit in September 2016, claiming that GEICO was wrongfully withholding payment of certain medical expenses in personal injury protection (“PIP”) cases.  In lieu of monetary relief, Gerber sought a declaration that GEICO had breached the terms of its policy on behalf of a purported class of healthcare providers who had been assigned PIP benefits from GEICO insureds.
• In June 2017, U.S. District Judge Beth Bloom certified a class, and the Judge granted summary judgment in favor of the healthcare providers five months later.  GEICO appealed both orders.
• On appeal, GEICO argued that Gerber lacked standing because Carruthers, the assignor, received more than the applicable policy limits on his claim.  Gerber countered that the class would experience future harm in disputes about other, similar claims.
• The Eleventh Circuit agreed with GEICO because “Gerber, as assignee, stands in Carruthers’ shoes,” and the possibility of future, similar harm to Carruthers was too contingent to satisfy Article III.  Accordingly, the panel reversed the district court’s decisions and ordered the case dismissed.
• This case serves as a reminder that lack of standing can defeat a claim at any phase of litigation, regardless of whether the claim presents an “important issue” that “has been pending for several years and has consumed a lot of both judicial and attorney resources.”
• The case is A&M Gerber Chiropractic LLC v. GEICO General Insurance Co., and the Eleventh Circuit’s decision can be read here.