Federal appeals court steers San Diego insurance dispute to California Supreme Court

A federal appeals court has taken the unusual step of steering a class-action case to the California Supreme Court, saying the state high court is best suited to resolve the dispute. The case involves past and current members of the U.S. armed services who were allegedly charged higher insurance rates than military officers by USAA, the high-profile insurer that caters to active service members and veterans. “This case is withdrawn from submission,” the 9th U.S. Circuit Court of Appeals wrote in an order issued Thursday. “Further proceedings before us are stayed pending final action by the Supreme Court of California.” The original lawsuit was filed in 2021 by Eileen-Gayle Coleman, a Marine Corps radio operator from Oceanside, and Robert Castro, an Army culinary specialist from Banning in Riverside County. The two plaintiffs filed suit against USAA, an acronym for United Services Automobile Association, alleging they were denied discounted rates the company made available to military officers.

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