Ninth Circuit Remands Proposed Class Action Against GEICO

A proposed class action against GEICO Indemnity Co. was remanded Thursday because it failed to meet its burden to show that the amount in controversy is high enough for jurisdiction.

A district court only has jurisdiction over a class action if the amount in controversy exceeds $5 million under the Class Action Fairness Act, or exceeds $75,000 under traditional diversity jurisdiction. GEICO did not sufficiently prove the amount in controversy exceeds either jurisdictional threshold, Judge Brian M. Morris said in a Ninth Circuit memorandum.

The case needs to go back to the district court so it can further determine whether ...