BTT v. an Anonymous Georgia Insurance Agency, et al.

Settlement of $1,675,000 (Georgia, 2007). Two insurance agencies sold a bogus excess liability policy for a large sum to BTT, a trucking company. After one of its trucks was involved in a wreck that horribly injured a child, BTT discovered that its excess liability insurance carrier did not exist and that the policy provided no coverage for its truck driver. BTT brought suit and was prepared to prove that the insurance agencies were negligent in their investigation of the shell corporation offering the policy, and negligent in offering to BTT the essentially non-existent insurance policy.

Chamber of Commerce Litigation: Steven Self, etc. v. United International Insurance Company, et al.

Settlement of $4,020,000 (Jefferson and St. Clair Counties, 2005) on behalf of nine Alabama families who purchased health insurance policies through the Birmingham, Pell City, and Childersburg Chambers of Commerce as part of a plan known as the CCAA Plan. This plan failed quickly and was determined to have been issued under the name of the United International Insurance Company, which was not ever licensed to do business in Alabama and was nothing more than a dormant insurance charter supposedly headquartered in the Caribbean island of St. Kitts. The plaintiff families purchased the CCAA coverage only to learn that their coverage was worthless. Unfortunately, some families had serious health claims and were either unable to get medical treatment out of their pockets. One individual had brain surgery due to a malignant tumor for which his family was responsible and had to delay follow-up treatment. Several others had surgery for a variety of health problems.

There are numerous defendants in the litigation ranging from a Birmingham Insurance agency which promoted the CCAA plan to other individuals or companies who developed it. One defendant was a vice president of Hilb, Rogal and Hamilton of Atlanta, Inc. who promoted the plan and received a portion of the premiums but did not conduct any evaluation of whether the plan was financially viable, issued by reputable companies, or even legal. These companies and individuals were sued for their negligence. The Alabama Department of Insurance recognized problems with the CCAA Plan within 90 days of its start date but lacked the resources to assist the families in getting their claims paid or any other compensation.

A judgment of $8,500,000 for fraud was obtained against other defendants who did not participate in the settlement but who actively orchestrated the fraudulent CCAA Plan.

Plaintiffs v. Anonymous Insurance Company

Settlement of $378,954 (Circuit Court of Calhoun County, 2004). A plaintiff and his wife had automobile insurance with their insurance company. The plaintiffs automobile was struck from behind by a person insured by GEICO. The plaintiff suffered a severe back injury, which required surgery. GEICO agreed to pay their policy limits of $30,000. Plaintiffs then filed a claim for his under-insured motorist coverage for herself, but a spouse cannot waive this specific coverage for the other spouse. The husband had never waived his coverage and, according to statute, was entitled to collect.

Shortly after the lawsuit was filed, the insurance company paid the remainder of the medical pay benefits and tendered $80,000 plus interest of under insured motorist benefits owed under the automobile policy. The insurance company later agreed to settle the remaining fraud and bad faith portion of the lawsuit of $265,000.

Southern Energy Homes v. JRH Risk Services, Inc., Group Resources, Inc., and ULICO Casualty Co.

Settlement of $475,000 (Circuit County of Winston County, 2003). JRH, which later became GRI, acting as third-party administrator, and ULICO, as provider of excess loss coverage, contracted to administer the plaintiff’s self-insured employee benefit plan. Plaintiff claimed that JRH/GRI mishandled health claims for a number of the plaintiff’s employees and that ULICO refused to pay employee health claims as was its duty as excess loss coverage provider..

Southern Energy Homes v. HPS Paradigm, Inc. and American National Life Insurance Co. of Texas.

Settlement of $300,000 (U.S. District Court for the Middle District of Alabama, 2003). Plaintiff established an employee health benefit plan by contracting with Paradigm to act as third-party administrator and American National to provide excess loss coverage for the plan. Plaintiff discovered after completion of the policy period that American National had neglected to pay claims which would have been covered by the excess loss coverage. Thus, the plaintiff claimed breach of contract against both defendants and bad faith against American National.

Betty Wright v. Anonymous Insurance Company

Settlement of $700,000 (Circuit Court of Lawrence County, 2002) Plaintiff purchased health insurance and developed breast cancer two years later. The insurance company more than doubled her premiums after learning of her condition. Suit was filed for breach of contract and fraud.

Skilstaf v American Medical Security, Inc.

Verdict of $6,902,576 (Jury verdict in U.S. District Court for the Middle District of Alabama, 2001). Verdict awarded at the end of a week-long trial against an insurance third party administrator which had mishandled health claims for a number of plaintiff's employees. The jury awarded $1,902,576 in compensatory damages and $5,000,000 in punitive damages. This case was featured in the National Law Journal. Defendant appealed to the Eleventh Circuit, which held oral argument before affirming the verdict. Defendant then filed an appeal to the United States Supreme Court, which denied certiorari. With interest, Defendant was compelled to pay $7,665.876.

Mesastaff v. Anonymous Third-Party Administrator

$300,000 (Mobile County, 2001). Mesastaff was a start-up employee leasing company located in Mobile. The company placed its health insurance for its client companies with a third-party administrator whose job was to adjudicate health claims. Without the knowledge of Mesastaff, the third-party administrator placed other insureds on the Mesastaff health plan, resulting in financial losses to the plan.

Yvonne Crispin v. Confidential Insurance Company

Settlement of $325,000 (Circuit Court of Tallapoosa County, 2001). Plaintiff was the widow of a physician who had purchased a life insurance policy years prior to his death through Mutual Assurance Company. Mutual Assurance changed life insurance companies shortly before Dr. Crispin’s death, and the new insurer refused to honor the claim.

Skilstaf v. Adminitron and Lamar Life

Settlement of $1,440,000 (U.S. District Court for the Middle District of Alabama, 2000). Settlement was reached on behalf of an employee leasing company with two defendant insurance companies. One defendant was a third-party administrator who failed to obtain sufficient re-insurance. The other defendant was a re-insurer who refused to pay excess group health benefits pursuant to an insurance policy. The trial judge's ruling against the third-party administrator is a reported decision.

McNatt, et al. v. Franklin Life Insurance Co.

Nationwide class action settlement in the estimated range of $60 million (U.S. District Court for the Northern District of Alabama, 1999). The allegations involved vanishing premium fraud, where the defendants and their agents misled policyholders about the years they would have to pay premiums on their life insurance policies. The firm represented one of the named class representatives along with several other firms.

Mason v. State Farm

Settlement of $315,000. (Etowah County Circuit Court, 1999). Harold Mason alleged State Farm misled him when he purchased a life insurance policy. He was told he would only have to pay premiums for nine years on his new life insurance policy, when in fact Mr. Mason would have owed premiums until he reached the age of ninety-five.

Confidential Settlement

Settlement of $600,000. Vanishing premium settlement against a large insurer.

Sandra and Robert Compton v. State Farm

Verdict of $570,000 (Jefferson County Circuit Court, Bessemer Division, 1998). Verdict against State Farm for bad faith and breach of contract. The plaintiffs’ home burned, and State Farm denied the homeowners’ coverage.

Confidential Settlement

Settlement of $560,000 in three vanishing premium life insurance cases.

Morgan v. Confidential Defendant

Settlement of $400,000 (Tallapoosa County, 1998). Vanishing premium life insurance fraud case where Mr. Morgan was misled at the time the policy was sold to him about the number of years he would have to pay premiums.

Confidential Settlement - 1997

Settlement of $1,050,000. This was a confidential lump sum settlement of a number of cases against a large insurance company; most of the cases were brought under a vanishing premium type theory.

Confidential Settlement - 1997

Settlement of $765,000 by a confidential defendant for vanishing premiums fraud in the selling of life insurance.

Key v. Prudential

Verdict of $25,000,000 (Marshall County Circuit Court, 1996). This was the first vanishing premium against Prudential to reach trial. John Key bought a Prudential policy based on the vanishing premium concept, then became uninsurable. After he became uninsurable because of his health, he found out that his premiums would not be paid off in the requisite amount of time. At trial, the jury found in favor of Mr. Key. In early 1996, the case was settled for a confidential amount.

Settlement of $4,500,000 - 1996

This was a confidential lump sum settlement of several cases brought against an insurer - based upon vanishing premium policies that had reached the “vanishing point”, but for which premiums were still being charged.

Vicki Torsch v. St. Paul Insurance

Settlement of $2,800,000 (U.S. District Court for the Middle District of Alabama, 1996). Bad faith insurance case based on the failure of St. Paul Insurance to properly defend Dr. Torsch in three medical malpractice cases. Dr. Torsch was deceased at the time of the settlement, so his interests were represented by his wife, Vicki. This case was settled during trial.

Settlement of $2,000,000 - 1996

This was a confidential lump sum settlement of several cases brought against an insurer-based upon vanishing premium policies that had reached the “vanishing point”, but for which premiums were still being charged.

Talmadge Meadows v. Confidential Defendant

Settlement of $1,500,000 (Morgan County, 1996). This was a fraud case against a large insurer, and involved the actions of an agent hired by the confidential defendant - who had a previous record of defrauding clients under another insurance company.

Scottie Ballard v. Lloyd's of London

Settlement of $620,000 (Marion County, 1996). Insurance fraud regarding the amount to reimburse Mr. Ballard under his policy of insurance for his business when it was destroyed by fire. This case was settled after a successful appeal to the Supreme Court.

Rawlinson v. Allstate

Verdict of $1,000,000 (St. Clair County, 1995). Rawlinson had a houseboat insured for $24,000. The boat sank and Allstate offered only $4,000, claiming that was the actual cash value of the boat.

Janice Scott v. Cincinnati Insurance Co.

Settlement of $800,000 (Dallas County, 1995). Fraud in the sale of an insurance policy.

Barbara Owens v. Confidential Defendant

Settlement of $700,000 (Etowah County, 1995). Fraud case in the sale of credit life insurance at the time the plaintiff purchased a car from a dealership. This case was settled during the trial.

Sarah Adams v. Universal Life Insurance Company

Settlement of $575.000 (Jefferson County, 1995). Insurance fraud case.

Evelyn Crocker v. Union Security and First Alabama Bank

Jury verdict of $5,000,000 (Choctaw County, 1994). Evelyn Crocker and her husband were misled at the point of sale in the purchase of credit life insurance while taking out a loan. Mrs. Crocker applied for death benefits after her husband died and those benefits were denied. One of the issues was post-claims underwriting, under the insurance company's practice of evaluating an insured's eligibility after a claim was filed.

Gary Hopper v. Confidential Defendant

Settlement of $750,000 (Etowah County, 1994). Insurance company did not do a proper background check and hired an agent that had committed fraud at a previous insurance company. The agent defrauded Mr. Hopper in the sale of automobile insurance.

Dewberry v. New York Life

Settlement of $650,000 (Macon County, 1994). Fraud case in the sale of a life insurance policy. Agent took money from the insured but failed to send it to the insurance company.

Janet Roger v. Confidential Defendant

Settlement of $450,000 (Marshall County, 1994). Fraud against bank, loan officer and insurance company, for fraud in the sale of credit life and disability insurance at the time plaintiff took out a loan.

Hilley v. Allstate

Verdict of $2,000,000 affirmed (Etowah County, 1992). The Hilley's house burned down. Allstate refused to pay under their homeowner's policy because the Hilleys did not rebuild their house. The Hilleys could not rebuild their house due to the failure of Allstate to pay on the insurance policy. (Reported case).

Curtis Parks & Rosa Parks v. Cincinnati Insurance

Settlement of $889,000 (Jefferson County, 1992). Insurance fraud from stacking of uninsured motorist policies.

Woodard v. Monarch Life Insurance Co.

Settlement of $550,000 (Calhoun County, 1992). Fraud case involving a disability policy. This case was settled during trial.

Beverly and LeBrun Hawse

Settlement of $400,000 (Tallapoosa County, 1992). Fraud in the sale of an insurance policy.

Gloria Pritchard v. Golden Rule Insurance

Verdict of $1,000,000 (Tallapoosa County-Dadeville, 1991). Insurance fraud against an individual health insurer who approved a surgical procedure but later refused to pay the benefits.

Starnes v. Accelerated Life

Verdict of $1,000,000 (Tallapoosa County, 1991). Fraud in the sale of an insurance policy.

Daniel Williams v. Confidential Defendant

Settlement of $940,000 (Chambers County, 1991). Settlement regarding fraud in the selling of an insurance policy.

Areas of Practice