Indeed, through possession of these loan files, Conseco is in a unique position of being able to analyze its customers' specific financial needs and identify those current customers who may need additional Conseco financial services. It began insurance operations in 1982 and became a public company in 1985. Terrence J. O'Toole of St. Louis appeared on the brief. Sit back and relax while we do the work. In order to recover damages for unfair competition, Conseco was required to prove 1) the existence of a trade secret, 2) the communication of the trade secret to another, while that former employee was in a position of trust and confidence with Conseco, and 3) the use of the trade secret that damaged Conseco. During this experience he conceived the idea for a new kind of enterprise--a life insurance company that would combine the flexibility and innovation of a small firm with the marketing savvy, financial strength, and computer systems of a big financial institution. Our content is intended to be used for general information purposes only. Bristol also stated that he encouraged three of the loan originators working under him at Conseco to resign and come to work with him at North American. North American competes for individuals in the same market. She sought to be compensated for her alleged role in Wendt's success at GE Capital. After all, a $100 investment in Conseco in 1988 would have returned $2,062 in 1993. The business has over $3.4 billion of statutory reserves. Unsubscribe easily. Shearson Lehman Brothers advised Lincoln Income Life Insurance. Bristol testified that he believed between one to six of these leads resulted in new business for North American. 417.453(4) (1995). When you register for our products and services, we also collect certain personal information from you for identification purposes, such as your name, address, email address, telephone number, social security number, IP address, and date of birth. You need to work with the other parties that were involved in that transaction (the title company & US Bank), take initiative and reach out ot them. Finally, Scott Bristol, a former area manager at Conseco's St. Charles, Missouri, office, testified that although he did not have personal knowledge that any loan originators working under him in St. Charles made copies of customer loan applications, it was possible that such copying did occur. North American argued in its Rule 50(a) motion (styled "Motion for Directed Verdict") that Conseco "failed to offer sufficient proof that it sustained damages that were proximately caused by [North American's] use or misappropriation of trade secret documents." The auction also drew bids and counter-bids from a partnership of Warren Buffett's Berkshire Hathaway Inc. and a consortium that included the Wall Street investment firm Bear Stearns. By Darla Mercado. Two of the loan originators that Lasek recruited to leave Conseco with him eventually returned to work at Conseco-after a change of heart-and testified about Lasek's actions. Therefore, Conseco established a proper misappropriation claim with regards to these fourteen loan files. Get a Conseco Finance Servicing Corp Lien Release Instantly. Similarly, an investment in a restaurant chain that featured buckets of spaghetti fizzled. The winning bid is subject to Judge Carol A. Doyle's approval at a Friday hearing in Chicago. A potential obstacle to approval emerged this week when the Securities and Exchange Commission filed an objection to Conseco's disclosure statement and reorganization plan. It collected $5.6 billion in premiums last year and has 5.7 million policyholders. The Green Tree acquisition stirred up numerous questions, including whether Conseco had too much debt and whether Green Tree, which had a past of dubious accounting practices, was growing too rapidly--25 to 30 percent a year--and providing loans to high-risk borrowers. And in 2001 North American paid Keeler a salary of $2,500,000. Now, you think another third party would be a title company? In addition to its insurance and financial management divisions, which accounted for more than 85 percent of Conseco's operations in 1993, the company was broadening its scope to include some nontraditional ventures. Also, in order to be considered a trade secret, the information must be the subject of efforts that are reasonable under the circumstances to maintain its secrecy. The company then purchased Lincoln American Life Insurance Co. early in 1985 for $25 million. Does Financial Buyer Mean Breakup of Conseco Finance? If you've paid off your original Conseco mortgage and don't have a copy of the Conseco Finance Servicing Corp lien release, DoNotPay can help you get that critical paperwork. A study of the top U.S. insurers in 1991 showed that only 48 percent of their investments were fixed maturities, whereas over 50 percent were tied up in real estate and other less dependable assets. 3 of the Int'l Bhd. at 619, and we will not judge the credibility of the witnesses or weigh the evidence. For example, PNC charges a $25 fee if you close an account within 180 days of opening. Id. North American responds that the Conseco employees engaged in these acts because of Conseco's financial woes, and that they were simply concerned about their livelihood. In fact, it experienced stellar growth during 1992 and 1993. To complement that holding company's subsidiaries, Security National of Indiana was established to develop and market new life insurance products and services. Conseco acquired the remaining 63 percent interest in American Life in September 1996. Punitive damages are also subject to limitations imposed by due process. It turned out to be a bad deal for Conseco, and they were forced to sell to GE Capital in 2003. Questions persisted, and in late 1999 Conseco announced plans to pare debt and slow growth. What Happens If You Inherit a House With a Lien? Entering 1992, the company was valued at over $800 million. As such, the district court abuses its discretion in permitting a punitive damage award to stand when the award is so disproportionate to the factors relevant to the size of the award that it reveals "improper motives or a clear absence of the honest exercise of judgment." Listen to free podcasts to get the info you need to solve business challenges! However, a corporate defendant is required to pay punitive damages so long as the employees were acting within the scope of their employment. Get matched with an Auto Warranty partner. In contrast, more than 80 percent of Conseco's portfolio comprised fixed maturities, and only two percent consisted of real estate holdings. ", Conseco organizes these lead sheets according to color-the most promising are colored red, leads that are considered good are colored white, and merely decent leads are colored blue. Also, North American's senior manager, Wade Hershel, received faxes containing Conseco loan documents originating from Conseco's St. Louis branch office from loan originators with this clandestine dual-employment status. Conseco is a Delaware financial services company with its principal place of business in Minnesota. Co. of N. 2003). When Dwight Eisenhower gave the Atoms for Peace speech what constructive use of nuclear energy was he introducing? A review of the record leaves us with no doubt that the jury had sufficient evidence before it (albeit conflicting evidence) to conclude that North American had engaged in unfair competition and caused damage to Conseco. Unsubscribe easily. 1995) (quoting Cortez v. Life Ins. Specifically, North American argues that its conduct was not outrageous and did not justify the award, that there was no corporate wrongdoing by North American, and that the punitive damages were an improper remedy for its discovery abuses.10. I bought a 1995 boat trailer. North American next argues that, even if the loan files and lead sheets are considered trade secrets, Conseco still "did not make a submissible case of either the fact of damages or the amount of damages." Address: 11825 North Pennsylvania Street Carmel, Indiana 46032 U.S.A. Telephone: (317) 817-6100 Fax: (317) 817-2847 http://www.conseco.com Statistics: Public Company Incorporated: 1979 as Security National of Indiana Corp. Employees: 17,187 Total Assets: $98.4 billion (1999) Stock Exchanges: New York Ticker Symbol: CNC Sys. Indeed, as the insurance industry weathered record insolvencies, Conseco expanded its headquarters and opened an entirely new hub, the Conseco Annuity Center, in Dallas. Who started Conseco insurance? Pony Comp., Inc. v. Equus Comp. PITCHERS ARE RED HOT: The Great Lakes Loons gave up just 15 runs while taking five out of six Mid-Michigan police officer accused of defrauding Meijer of $10K, Crime log: Harassment complaints made by township residents. You can reach us on phone number (480) 361-0034, fax number or email address . R. Civ. Id. Jamie Walters, CAIA on Twitter: "In 1998, Conseco purchased the former Conseco is a Delaware financial services company with its principal place of business in Minnesota. Over the next two years Conseco continued to gobble up insurance companies--it acquired eight in 1996 and 1997. 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