The District Court for the Western District of Washington partially dismissed a putative class action for a dispute over payment protection plans. Plaintiff filed a putative class action alleging various state common law claims, including that defendant continued to market and sell its payment protection plan to the self-employed, despite excluding them from protection under its plans.
The Court granted defendant’s motion to dismiss plaintiff’s breach of covenant of good faith and fair dealing claim, finding it preempted because the claim was based on a disclosure, (i.e., duty to disclose the self-employment exclusion during contract formation), which is governed by the National Bank Act. Plaintiff’s remaining state law claims for breach of contract and unjust enrichment survived. Click here for the order.