DELTA WINS TICKET BUYERS’ SUIT OVER TRIP INSURANCE
April 9, 2020
On March 6, 2020, Delta Air Lines successfully had dismissed an attempted class action lawsuit brought by group of ticket buying customers on a federal Racketeer Influenced and Corrupt Organizations (RICO) Act claim and a Florida Deceptive and Unfair Trade Practices Act claim. The litigation began in September 2018, when plaintiffs accused Delta of accepting kickbacks in return for selling travel insurance to customers. The plaintiffs alleged that Delta received substantial percentage-based commission profits from AllianzGlobal Assistance when customers bought trip insurance through Delta’s website, even though the airline’s website makes it seem as though the charge is a pass-through fee for Delta.
The Court dismissed the plaintiffs’ RICO claims in July 2019, but allowed the case to proceed on the state claim. In the March 6, 2020 order, the Court found that the plaintiffs’ insurance-related consumer protection claims fall under the Florida Department of Financial Services and the Office of Insurance Regulation and are not covered under the Florida Deceptive and Unfair Trade Practices Act. The Court further found that the remedy sought by the plaintiffs are barred because the “filed rate doctrine” prohibits court challenges to rates approved by regulators, and that unjust enrichment claims are unavailable when the service paid was in fact received by the plaintiffs.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Andy Orr (aorr@eckertsemans.com or 202-659-6625).
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