EMH Scores Life Insurances Wins - Edison, McDowell & Hetherington LLP

Home > News > EMH Scores Four Dispositive Victories for Life Insurance Clients in December 2011

EMH ended 2011 with a bang, scoring four dispositive victories for life insurance clients in lawsuits across the country. The cases included issues ranging from whether an insured was actually dead to the finer nuances of premium financing and stranger-originated life insurance.

The good news started in Las Vegas, where the U.S. District Court for the District of Nevada granted an EMH life insurance client’s motion to dismiss a lawsuit brought by investors in a stranger-originated life insurance (“STOLI”) scheme. The court concluded that the life insurance policies were purchased as part of a STOLI scheme, violating public policy and insurable interest laws. Because plaintiffs should have known that they were participating in an illicit STOLI scheme, the court found that plaintiffs could not state a claim against EMH’s client. The Nevada motion was briefed by David McDowell, Jessica Wilson and Natasha Nisttahuz and argued by David McDowell. A copy of the Order can be found HERE.

The following day, the U.S. District Court for the Northern District of Illinois dismissed all claims asserted against an EMH life insurance client for refusal to pay a policy death benefit. The client had refused to pay, because the beneficiary had provided no evidence that the insured of this substantial policy was actually dead. In granting summary judgment, the Court found that not only had the beneficiary failed to prove that the insured was deceased, but that its claims were “patently frivolous.” The Illinois motion was briefed by David McDowell and Jason Richardson and argued by Jason Richardson.

The very next day, the Supreme Court of the State of New York granted a motion to dismiss filed by an EMH life insurance client. The plaintiff, an investor in a high value stranger-owned life insurance scheme, accused EMH’s client of breach of contract and consumer fraud. In granting the motion, the court held the parties never entered into a contract and that the plaintiff failed to meet New York’s heightened pleading standard for fraud. The New York motion was briefed by Jessica Wilson and Andrew Kasner and argued by David McDowell. A copy of the Order can be found HERE.

Finally, the year ended with a Harris County, Texas District Court granting summary judgment to an EMH life insurance client in a case involving a $4 million policy that lapsed for non-payment of premium. Plaintiffs had asserted 19 causes of action against the life insurer and sought millions in damages. In granting summary judgment, the Court agreed that no contract was in force at the time of the insured’s death. The Texas motion was briefed by David McDowell and Blaire Bruns and argued by David McDowell.