Federal Judge Refuses to Remand Case Seeking Refund of Overpaid Flood Premiums

NEW YORK — A lawsuit over an insurer’s refusal to refund excess flood insurance premiums paid as a result of changes to FEMA flood designation belongs in federal court because it implicates a uniquely federal interest and places U.S. Treasury funds at risk, a federal judge has ruled.

Judge Leonard D. Wexler of the U.S. District Court for the Eastern District of New York said in a Dec. 20 opinion denying remand of a suit brought by a New York homeowners association that it is the United States that ultimately bears the risk of any potential refund for the overcharging …