Rebating suit filed against Hartford Financial Services.

I did my checking and calling and there has in fact been a suit filed in US District Court, Bridgeport, CT requesting class action and seeking redress by plaintiffs alleging a pattern and practice of short changing and rebating. It was filed October 31, 2005 and I'll see if I can get a copy of it or the case number so that I/we can do an analysis.

Counsel for plaintiffs are Attorney David Golub of Silver, Golub & Teitell, Attorney Peter R. Kahana of Berger & Montague in Philadelphia, PA and Attorney Richard B. Risk of The Risk Law Firm in Tulsa, OK.

Well, this should be very interesting, and based on some other calls I've made over the last three weeks, this will not be the last case of it's kind filed and these are not the only attorney's pursuing this. A lot of us for a lot of years have felt the commission sharing/rebating/revenue sharing model was badly flawed, with my plaintiff orientation obviously being more against it then most. However, I've spoken to just as many defense brokers who wanted it ended over the last 5 years as well, but several of the casualty markets clung to it for what I've always felt were marginal income reasons relative to the risk of suits such as this one and Macomber showing up eventually.

 Follow up: 11-13-2005. Case number is either, 305: CV1681 JCH or 305: CV01681 JCH. I had readers send me both numbers.

Comments

[Jack]

While I've heard nothing more on our friends in Hartford, I'm wondering what's up with First Capital or Morgan Chase or whatever they call themselves these days. First, Maguire is pushed out (but oddly left on their board). Then their new CEO sends out the strangest email with odd disclosures. Then Mike Tucker leaves, and today I find out Mike Furney has left. Is this another SBU or ML Bond fund in the making?

[The Settlement Channel]

Jack,

I'm going to be doing an interview with the First Capital people this week which will be available via podcast. I'll be getting into those exact areas to clear up some of the confusion. I had a very good conversation with several of the principals earlier this week and I think they will benefit from clearing the air and dispelling any rumors. Watch for the podcast to go up on Friday of this week.

[John Darer]

Morgan Chase Trust Company did exactly what they were supposed to do in protecting a child's interest with a Settlement Preservation Trust involving one of my clients. The SPT was set up as part of a settlement plan for a neurologically impaired child.The trustees contacted me because they found the mother of the child "padding the bills". They were alert and the problem was solved. I have had good dealings with them as have others.

I don't see how they can be compared with SBU and I'm glad you are doing a podcast Mark. We need the Morgan Chases. They fill a niche that nobody else does and deserve all of our support as an industry

[The Settlement Channel]

John,

I agree totally. I've had nothing but good experiences with them and want to make sure that any rumors are dispelled and give them a chance to discuss the recent changes, plans going forward and other items of interest to planners and attorneys. I'll post the date of the podcast tomorrow.