- EMH Obtains Significant Victory in STOLI Litigation
- Edison Named Texas Super Lawyer
- EMH Partners Address Critical Issues in Stranger Owned Life Insurance Litigation
- Two Outstanding Lawyers Join EMH’s Ranks
- EMH Obtains Class Certification Denial in Antitrust Funeral Home Litigation
- Firm Partner Tom Hetherington Named a Texas Monthly “Rising Star”
(March 3, 2010) — EMH client PHL Variable Insurance Company (“Phoenix”) and life insurance companies across the country obtained a significant victory today on one of the most debated and fiercely contested issues in Stranger Owned Life Insurance (“STOLI”) litigation: whether an insurer can rescind an insurance policy while retaining policy premiums as an offset against damages the insurer suffered as a result of the policy’s issuance.
Chief Judge Michael J. Davis of the United States District Court for the District of Minnesota issued a Memorandum Opinion and Order providing Phoenix with all of its requested relief in PHL Variable Insurance Company v. Lucille E. Morello 2007 Irrevocable Trust; Cause No. 08-572. A copy of the Memorandum Opinion and Order can be found here. In November 2007, the Lucille E. Morello 2007 Irrevocable Trust (the “Morello Trust”) submitted a claim to Phoenix, seeking payment of $10,000,000 in death benefits. After Phoenix’s contestability investigation did not substantiate the financial representations made in the application -- that Ms. Morello had a net worth of $34 million and income in excess of $800,000 annually -- Phoenix filed suit, seeking to rescind the policy while also seeking to offset premiums paid by the Trust against the damages Phoenix had suffered, including commissions paid to insurance producers and its attorney’s fees.
The Morello Trust counter-claimed, seeking payment of the death benefit and asserting bad-faith claims. After discovery revealed the expansive nature of the fraud, the Morello Trust agreed to policy rescission and retention of premiums by Phoenix. Premium financier New Stream Insurance, LLC, intervened, seeking to preclude Phoenix from rescinding the policy without fully refunding premiums. After extensive briefing and argument by the parties, the Court issued a 16 page memorandum opinion and order, ruling in Phoenix’s favor on all issues and holding that Phoenix would be permitted to retain premiums paid on the policy. This represents the first opinion on this issue in Minnesota STOLI litigation, and represents one of the first opinions in the nation.
HOUSTON (October 1, 2009) — Andrew Edison, a founding partner of Edison, McDowell & Hetherington, has been named among the top lawyers in Texas in the Texas Super Lawyers list published in Texas Monthly magazine.
The prestigious Texas Super Lawyers list highlights just 5 percent of the approximately 70,000 attorneys in the State of Texas. Honorees are singled out through a peer nomination process, followed by a blue-ribbon panel review and independent research performed by Texas Super Lawyers editors. The final list published by Law & Politics Media Inc. appears in the October issue of Texas Monthly.
Mr. Edison has developed a reputation as a skilled courtroom litigator and trusted advisor to businesses. His thriving practice encompasses a wide variety of litigation, including securities fraud, antitrust, complex business litigation and eminent domain work. He is currently head of the trial section at Edison, McDowell & Hetherington.
HOUSTON (April 16, 2009) — Named partners David McDowell and Tom Hetherington recently spoke at the 2009 Life Insurance Conference in Orlando, Florida on critical issues in stranger owned life insurance litigation (“STOLI”). Messrs. McDowell and Hetherington shared their experience in recent STOLI cases, outlined recent developments in case law, discussed new strategies being used by STOLI promoters and addressed the impact the global economic downturn has had on STOLI activity.
Messrs. McDowell and Hetherington are frequent speakers on matters affecting the life insurance industry and have substantial expertise on STOLI related issues. They have filed and defended numerous cases involving stranger and investor originated life insurance transactions, and offer in depth knowledge of state insurable interest laws, life insurance fraud, financial underwriting issues, and other issues involved in STOLI related litigation.
For more information regarding STOLI litigation please contact Mr. McDowell (713-337-5582) or Mr. Hetherington (713-337-5583) directly.
Edison, McDowell & Hetherington is a Texas-based litigation boutique with offices in Houston and Dallas/Ft. Worth. The firm serves clients throughout Texas and across the United States.
HOUSTON (April 16, 2009) — Edison, McDowell & Hetherington LLP announced today that Alana K. Pulaski and Ruben J. Olvera have joined the firm, further bolstering the firm’s experience in complex commercial matters.
A 2001 graduate of Emory School of Law, Ms. Pulaski served as law clerk to the Honorable Justice Xavier Rodriguez at the Texas Supreme Court. She then spent seven years as a trial attorney at Bracewell & Giuliani LLP, where she handled a wide variety of commercial litigation matters. Ms. Pulaski has experience in life, health and disability insurance litigation, employment-related litigation, ERISA litigation, financial services litigation and energy industry matters. Ms. Pulaski's drive and ambition extend outside the office, where she enjoys distance running and has completed the Houston marathon and various half marathons.
Mr. Olvera maintains a general civil litigation practice, with experience in construction litigation, real estate litigation, factoring litigation, employment litigation, and insurance and financial services litigation. Mr. Olvera earned his undergraduate degree from Texas A&M University and his law degree from South Texas College of Law. Prior to joining Edison, McDowell & Hetherington LLP, Mr. Olvera was an associate at Coats, Rose, Yale, Ryman & Lee.
“Alana and Ruben are terrific lawyers and outstanding people,” said named partner Andrew Edison. “We are thrilled they both have chosen to join our firm. Their considerable experience in highly complex and diverse commercial matters provides a tremendous resource for firm clients.”
HOUSTON (April 1, 2009) — United States District Court Judge Kenneth Hoyt has adopted a magistrate judge’s recommendations to deny class certification in two highly publicized class action antitrust lawsuits targeting the funeral industry. Andrew Edison of Edison, McDowell & Hetherington and J. Clifford Gunter III of Bracewell & Giuliani LLP successfully represented Service Corporation International, the world's largest funeral and cemetery company, in the two antitrust cases.
For an article about the case, see here.
The cases began in 2005 when a consumer advocacy group sued the country's three largest funeral home chains and a leading casket maker, charging that the defendants conspired to keep casket prices high and shut out casket discounters in violation of federal antitrust laws. The two purported class action lawsuits, which were originally filed in federal court in San Francisco, California and then later transferred to the Southern District of Texas, were brought on behalf of casket consumers and independent casket retailers across the United States. Plaintiffs were seeking more than $1 billion in damages. The cases are expected to be appealed to the Fifth Circuit Court of Appeals.
HOUSTON (April 1, 2009) — Edison, McDowell & Hetherington partner Tom Hetherington has been selected by Texas Monthly magazine as a “Rising Star” for the fifth time.
The “Rising Star” award is based on a three-part system that determines the top 2.5 percent of the state's up-and-coming lawyers. First, over 65,000 Texas lawyers are surveyed and asked to nominate the best lawyers that they have personally observed in action. When the surveys are in, Texas Monthly conducts independent research of the nominees' credentials. Lastly, the final selection is made. "Rising Stars" are attorneys who are either 40 years old and under or who have been practicing for ten or fewer years.
Mr. Hetherington, a founding partner of Edison, McDowell & Hetherington LLP, has established himself as one of the top young legal minds around. He enjoys a diverse docket of commercial litigation matters and takes great pride in his trial successes. Mr. Hetherington was previously a Texas Monthly “Rising Star” in 2004, 2005, 2006 and 2008.
