Declaratory Judgment Class Action Ruling Vacated for Lack of Standing
A GEICO insured injured in a car accident assigned his Florida PIP (Personal Injury Protection) benefits to his chiropractor. The chiropractor would have been entitled to recover $10,000.00 assuming the insured was diagnosed with an emergency medical condition (EMC), but was otherwise limited to $2,500.00 in benefits. GEICO paid the chiropractor $7,311 in PIP benefits, even though there was no EMC finding. Unsatisfied, the chiropractor filed a declaratory judgment class action against GEICO seeking a declaration that GEICO was required to pay the chiropractor the full $10,000.00. Several months after suit was filed and more than two years after the accident, the insured “obtained an EMC medical diagnosis.” After denying the motion to remand the case “for lack of Article III standing,” the court granted summary judgment in favor of the chiropractor. GEICO then appealed arguing that the chiropractor lacked standing. The Eleventh Circuit panel concluded that the chiropractor had no standing and for that reason vacated the judgment and directed the district court to remand the case to Florida state court.