Appeals court upholds $8 million verdict against insurer

Appeals court upholds $8 million verdict against insurer | Insurance Business

Appeals court upholds $8 million verdict against insurer

A federal appeals court has upheld an $8 million jury verdict against an insurance company for allegedly breaching its contract with two mayors’ organizations.

In 2012, Great-West Life & Annuity Insurance Company contracted with the United States Conference of Mayors (USCM) and United States Mayor Enterprises (USME) to administer a national program that offered a retirement plan to municipal employees. In 2016, USCM sued Great-West for breach of contract and breach of the implied covenant of good faith and fair dealing.

USCM said that Great-West “grossly overstated” fee growth projections, didn’t pay fees and failed to provide dedicated staff for the program, according to a Pensions & Investments report. In January of 2018, following a two-week jury trial, the court found in favor of USCM and USME on all counts and awarded the organizations $8 million. Great-West appealed.

Last week, however, the US Court of Appeals for the DC Circuit upheld the jury’s verdict in full.

“We are extremely gratified by this decision and the affirmation by the jury and the courts of the merits of the mayors’ position throughout these proceedings,” said Tom Cochran, CEO and executive director of USCM. “…The court’s decision strengthens our commitment to the health and financial wellbeing of municipal employees nationwide as we continue to fight for cities, their residents and their workers.”