CCI has handled thousands of cases of every type and size. This page features
case studies taken from actual cases in our files. Names will always be redacted
or fictitious in order to protect the confidentiality of the parties. A party's
real name is only used if we have requested and received permission to do so in
writing. Following is a sample of non-physical injury cases we have handled:
Equal Employment Opportunity Commission v. Utility Company
The Equal Employment Opportunity Commission (EEOC) brought this employment discrimination
case against a utility company. The EEOC represented 136 Charging Parties (plaintiffs)
alleging discrimination in the terms and conditions of employment. The utility
company had offered a multi-million dollar sum in settlement, which was rejected
by the EEOC as insufficient. With the utility company not wanting to spend more
in settlement, the case was heading to trial when CCI was called in. Splitting
the sum that the company offered, we proposed that half of it be provided in
up-front cash. A formula based on age, salary and years to retirement, was devised
for the balance of the money and offered along with enhanced retirement benefits
to the plaintiffs. A settlement was achieved to the satisfaction of all parties:
With some of the cash up-front and secured payments over time, our format was
acceptable to the EEOC and their clients. The utility company was satisfied
that they did not go beyond their original offer.
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Home Owner v. Bank
CCI has handled a number of "wrongful foreclosure" cases on behalf
of a large bank, which has issued hundreds of thousands of loans and holds the
mortgages on residential property. Unfortunately, a number of mortgages have
been wrongfully foreclosed over the years resulting in lawsuits by the former
homeowners. CCI has successfully structured several of these cases. One technique
is to match the structured benefits to the monthly mortgage payment on a replacement
home. In egregious cases, "extra" benefits have been provided via
a structured settlement to help settle the case.
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Single Age Discrimination Plaintiff v. Corporation
CCI has been instrumental in many ADEA (Age Discrimination in Employment Act)
cases over the years. These have been accomplished with and without assignments.
The older cases, pre-1990, were done with an allocation between taxable and
tax-free payments (they're all taxable now) with the tax-free payments being
assigned. On current cases we now have the Allstate/NABCO assignment available.
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Other Employment Cases
This wrongful discharge case was a six-figure employment matter against the
same bank client mentioned in Home Owner v. Bank above. In this fully taxable
situation, the sum originally offered ($700,000 net of fees and expenses) would
have resulted in a $350,000 tax hit. Understandably, the plaintiff rejected
the offer. CCI worked out an acceptable structure using Allstate's new non-qualified
assignment. The bank agreed to future periodic payments, NABCO took the assignment,
and an Allstate annuity was purchased. With this new structured settlement product,
the case settled for the same dollar amount originally offered in cash. Both
parties benefited: The defendant was able to take a full tax deduction for the
cost of settlement in the year of settlement, and the plaintiff was able to
receive settlement payments over time, remaining under the threshold of the
Alternative Minimum Tax (AMT) rules.
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Law Firm Break-up
A law firm, in the process of dissolving, was involved in a dispute with several
partners. Long term disability and life policies, purchased through Life Company
"A", needed to be paid on an on-going basis. The firm, however, continued
its dissolution. The litigation sought a stay and damages, and was settled as
follows: The firm agreed to pay the annual premium (to Life Company "A")
for each partner into the future (certain and life payments). The firm assigned
its future payment obligation to NABCO. The Settlement Agreement and Release
allowed the firm to accomplish a novation and receive a complete release from
the periodic payment obligation assigned. The firm was able to dissolve and
the former partners' insurance is continuing indefinitely. Allstate is guaranteeing
the future payment obligation of NABCO.
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Property Damage Case
Two of our clients, a railroad and a London-based marine insurer, were involved
in a situation where a barge broke loose from the tugboat that was pulling it
and struck a railroad bridge. The railroad made a claim for property damages
against the barge operator. The solution was found in a structured settlement
through the use of a reinsurance agreement.
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M. K. Basha - $10,000,000 Lottery Winner
This case involved a citizen and resident of India who played an Internet lottery
game and won $10 million payable over 30 years. The lottery (gaming) insurer
was a domestic U.S.-based Property and Casualty insurance company ("P&C
Company"). This case was structured via Allstate's Periodic Payment Agreement
(PPA), which is a direct obligation of Allstate without the use of an assignment.
Neither "P&C Company", nor the Internet company, have an on-going
payment obligation. The cost was approximately $3.6 million.
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Physician v. Life Company and U.S. Government
In this case, a life company refused to pay medical payments to a plan doctor
for alleged fraud. The federal government learned of allegations and suspended
Medicare payments to the physician. The local press published the accusations.
Later it was discovered that a clerical error on the part of the life company
caused the entire problem - no fraud had taken place. By the time the situation
was cleared up, the physician's practice was ruined. He went out of business
and sued. An eight-figure cash settlement was offered and rejected because of
AMT rules under which the physician would not get a deduction for attorneys'
fees (one-third) and expenses. Because the physician would have to pay taxes
on the full sum (not the net after fees and expenses), he would net, after tax,
less than $500,000. Since he had been out of practice nearly ten years and would
net so little, he could not accept the cash settlement. Taking interest in the
case, a local congressman proposed a private bill to make this settlement tax
free, but it did not pass. CCI worked out and proposed a structure that would
pay the physician over a number of years and put him below the AMT threshold
each year. In this way he is able to accept the settlement and net millions
of dollars after taxes without any additional cost to the defendants.
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Former General Counsel v. Fortune 500 Company
This case involved a dispute between management and General Counsel. CCI mediated
the dispute and worked out a structured settlement in the form of deferred compensation
using Allstate's PPA. We also did several similar cases for other executives.
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Sports and Entertainment Agent Dispute with Fortune 100 Company
A sports and entertainment agent claimed breach of contract on the part of the
company with which he placed entertainers for endorsements. A pre-suit settlement
via structured settlement was negotiated by CCI.
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