Cases for the June 2013 Edition of CaseWatch: Insurance

Cases provided courtesy of LexisNexis.

90-Day Rule – 45 CFR Parts 144, 146, and 147

4815 Dev. Corp. v. Harleysville Ins. Co.

Atl. Cas. Ins. Co. v. Cheyenne Country

Barlee v. First Horizon Nat’l Corp.

Burke v. Ability Ins. Co.

Chubb Custom Ins. Co. v. Space SystemsLoral, Inc.

City of New York v. Nova Cas. Co.

Dodd v. Am. Family Mut. Ins. Co.

Encore Receivables Mgmt. v. Ace Prop. & Cas. Ins. Co.

Federal Ins. Co. v. Sandusky

Gear Auto. v. Acceptance Indem. Ins. Co.

Continue Reading

U.S. Supreme Court Grants Petition to Clarify ERISA Technicality

Ray Haluch Gravel Co., et al., v. Cent. Pension Fund of the Int’l Union of Oper. Eng’rs & Participating Emp’rs, et al., case No. 12-992
Petition Granted June 17, 2013

According to the petition, “[t]he question presented in this case, on which there is an acknowledged conflict among nine circuits, is whether a district court’s decision on the merits that leaves unresolved a request for contractual attorney’s fees is a “final decision” under 28 U.S.C. § 1291.”

The U.S. Supreme Court agreed to hear …

Continue Reading

Supreme Court Affirms Arbitration Ruling Under Limited Review Authorized Under §10(a)(4) of the Federal Arbitration Act

Oxford Health Plans v. Sutter
(United States Supreme Court, June 10, 2013)

This action arises from an arbitrator’s decision on whether a contract authorizes class arbitration and whether the arbitrator’s decision survives the judicial review allowed by §10(a)(4) of the Federal Arbitration Act (FAA).

Specifically, a physician entered into a contract with the insurer and agreed to provide medical care to members of the insurer’s network. The physician, on behalf of himself and a proposed class, sued the insurer, alleging that the insurer had failed …

Continue Reading

Court Finds that Ownership is indeed 9/10th of the Law in Rescission Case

PHL Variable Ins. Co. v. P. Bowie 2008 Irrevocable Trust
(1st Cir. (R.I.) May 13, 2013)
The First Circuit recently held that an insurer may retain life insurance premiums following a policy rescission to offset the loss it has suffered. The ruling is notable because courts typically require an insurer to refund an insured’s policy premium where a rescission is effected.

In PHL, an insurance broker submitted an application for life insurance for Peter Bowie. Bowie’s application represented that he was a self-employed …

Continue Reading

Cases for the May 2013 Edition of CaseWatch: Insurance

Cases provided courtesy of LexisNexis.

AB Green Gansevoort, LLC v. Peter Scalamandre & Sons, Inc.

Atl. Cas. Ins. Co. v. Cheyenne Country

Bank of America, N.A. v. Superior Court

Boston Gas Co. v. Century Indemnity Co.

Colby v. Union Security Insurance Co.

Coleman v. Supervalu, Inc.

Collective Brands, Inc. v. Nat’l Union Fire Ins. Co.

Conestoga Wood Specialists Corp. v. U.S. Dept. of H.H.S.

Entitle Ins. Co. v. Darwin Select Ins. Co.

Evanston Ins. Co. v. Crocilla

First Tenn. Bank Nat’l Association v. St. Paul

Continue Reading

Life, Health, Disability, and ERISA is Now Available

Life, Health, Disability, and ERISA – a summary of decisions from across the country concerning life, health, and disability policies, including those governed by ERISA.  For a free copy of this edition, click here..

Following your review of Life, Health, Disability, and ERISA kindly feel free to contact attorneys and co-editors with any comments you may have, or with any topics you would like to see in upcoming newsletters. Editors: Daniel GerberSarah DelaneyMatthew C. Van Vessem

Continue Reading

Both Parties Flying High and Feeling Grounded at Supreme Court

 US Airways v. McCutchen

It is somewhat rare for a trial and appellate court to disagree and, upon appeal to the United States Supreme Court, find out they were both wrong. It is even rarer for both parties in this action to win and lose simultaneously in a decision. And yet, on Tuesday, April 16, 2013, the scenario described above happened in US Airways v. McCutchen. The ruling from Justice Elena Kagan was a mixed bag. On one hand, the court ruled that clear …

Continue Reading

Federal Prosecutors Indict Health Insurance TPA for $9 Million in Overstated Loss Ratios

United States v. Gutschlag, GM-Southwest, Inc. U.S. Dist. Ct., W.D.Va. April 8, 2013

Third Party Administrator GM – Southwest, Inc. (TPA), and its former owner John Paul Gutschlag, Sr. contracted with Virginia Tech from 2003-2011 to provide health insurance to the school’s undergraduate and graduate students. The premiums for the health insurance were paid directly to the TPA, who accounted for the premiums received, deducted its commission, and then delivered the balance to the carriers.

Each year the TPA was responsible for compiling and reporting …

Continue Reading

“Restitution, Community Service, and Probation Not Enough – You Did the $3 Million Crime, You Will Do Time”

United States of America v. Rick A. Kulhman No. 11-15959 (11th Cir. 2013)
Dr. Rick Kuhlman, a chiropractor who operated in Atlanta, GA, and Nashville, TN, pled guilty to running a five-year, $3 million health care fraud scheme. He appeared to be the perfect defendant because of his efforts to make things right and a willingness to educate others on the criminal nature of his actions. Therefore, the district court ruled out a jail sentence. However, the 11th Circuit reversed the relatively light sentence …

Continue Reading