A recent ruling by the New Jersey court that supports the early dismissal of class claims in suit against auto insurers might have the power to encourage other state courts to reject the certification of impracticable classes before the expensive process of discovery, reports Law360.

A published decision stated that class certification wasn’t prematurely denied to drivers who accused two New Jersey-based auto insurers of improperly refusing to cover the diminished value of their vehicles.

Law360 reports that a judge, “found that the drivers’ claims were unsuitable for class treatment as part of a motion to dismiss”

"It's a good decision for defense counsel because discovery in class actions can be extraordinarily expensive," Buchanan Ingersoll & Rooney Shareholder Christopher J. Dalton tells the publication. "If only the plaintiff controls the timing of the class certification motion, the defendant can end up spending tens or hundreds of thousands of dollars on a case that ultimately could have never been certified as a class action." 

Read the full article - "NJ Ruling Could Mean Shorter Life for Shaky Class Claims" (Law360, May 11, 2015). Subscription required.