New York Law Journal Reports on ACLU’s Support of NRA’s Free Speech
The New York Law Journal reported on August 24, 2018 that the American Civil Liberties Union moved to file a brief opposing the state’s motion to dismiss the National Rifle Association’s lawsuit against New York Gov. Andrew Cuomo and the state’s top financial regulator. The firm is representing the NRA in the matter.
“If true, those allegations represent a blatant violation of the First Amendment,” the proposed brief [from the ACLU] said. “Although public officials are free to express their opinions and may condemn viewpoints or groups they view as inimical to public welfare, they cannot abuse their regulatory authority to retaliate against disfavored advocacy organizations and to impose burdens on those organizations’ ability to conduct lawful business.”
The article included comment from firm partner William Brewer.
“The ACLU’s amicus brief is testament to what we have contended all along—Gov. Cuomo and the DFS violated the First Amendment rights of the NRA,” Brewer said. “The ACLU is a leading voice on legal and constitutional issues, and we welcome their advocacy in this important case.”
Judge Grants Motion for Sanctions in High-Profile Life Insurance Case
The United States District Court for the District of Colorado granted a motion for sanctions filed by Brewer, Attorneys & Counselors on behalf of firm client DCD Partners, LLC against Fred Albracht, Chief Actuary for the North America National Reinsurance Company (NANRe), for attempted evasion of a subpoena.
The August 8, 2018 award constitutes the second sanction levied against actors involved in the implementation of a massive and unlawful increase in the rates charged by Transamerica Life Insurance Company on life insurance policies held by DCD – policies which provide thousands of dollars in benefits to a non-profit organization and thousands of disadvantaged families in South Los Angeles every year.
The underlying litigation, styled DCD Partners, LLC v. Transamerica Life Insurance Company, 15-cv3238-CAS-GJS, captured headlines and sparked a national conversation about improper rate hikes when a federal jury agreed with Brewer and found that Transamerica and NANRe “contrived” the rate increase in breach of contract. The jury awarded DCD nearly $6 million in compensation for the breach.
“We hope this decision, and the prior sanction against Transamerica, underscores that insurers cannot continue to take advantage of policyholders and then hide behind the costs of discovery caused by gamesmanship,” says William A. Brewer III, partner at Brewer, Attorneys & Counselors and lead counsel for plaintiffs. “Beyond the impacts to the case in question, we hope these developments help shine a light on rate increases and the impact they have on unsuspecting policyholders.”
Firm’s Case Chronicled in The New York Times
August 9, 2018
The New York Times chronicles one of the firm’s current advocacy campaigns in an article, “The NRA Has Declared War on Andrew Cuomo. He Couldn’t Be Happier,” dated August 9, 2018. The piece explores the firm’s representation of the National Rifle Association (NRA) and a lawsuit by the organization against New York Governor Andrew Cuomo and the New York State Department of Financial Services.
Partner William Brewer is quoted extensively in the article, offering insights into the firm’s position that the State of New York has violated the First Amendment rights of the NRA.
National Review Columnist Endorses Firm’s New York Lawsuit on Behalf of NRA
Columnist David French published a commentary in the National Review, “To Limit the Second Amendment, New York Attacks the First,” dated August 7, 2018, that offers support of a lawsuit filed by the NRA against New York Governor Andrew Cuomo and the New York State Department of Financial Services (DFS). Brewer, Attorneys & Counselors represents the NRA in the matter.
The suit alleges that the state violated the NRA’s First Amendment rights in connection with regulatory guidance issued to financial institutions urging them to not do business with the NRA. French writes that Governor Cuomo has no right to threaten financial institutions that do business with the NRA.
French writes, “State officials have their own free-speech rights, yes, but those free-speech rights do not include the right to use express or implied threats to wield state power against disfavored viewpoints.” In comments directed at Cuomo, he wrote that “the instant that malice translates into state action aimed at speech is the instant the Constitution holds you to account.”
Albany Times Union Columnist Writes About Firm’s Case
Albany Times Union Columnist Chris Churchill wrote a column dated August 6, 2018, titled “Cuomo targets the NRA – and free speech” that refers to a lawsuit brought by the firm on behalf of the National Rifle Association (NRA) against New York Governor Andrew Cuomo and the state Department of Financial Services (DFS) and its Superintendent, Maria T. Vullo. The suit alleges that the state violated the NRA’s First Amendment rights in connection with regulatory guidance issued to financial institutions urging them not to do business with the NRA.
Churchill writes that Cuomo’s attack on the NRA “is more harmful to the First Amendment than the Second” Amendment because Cuomo has “essentially weaponized the state’s regulatory authorities to go after a political organization with which he disagrees.” Churchill also refers to the lawsuit alleging that Cuomo “is using the power of state government to pressure banks and insurance companies to stop doing business with the gun rights group.” Additionally, Churchill quotes directly from the lawsuit’s allegation that Cuomo is running a “blacklisting campaign.” He concludes that, “What Cuomo is doing – using the power of the state to target a political enemy – is tyrannical.”
NYLJ Reports on Firm’s Representation of NRA, Amended Complaint
The New York Law Journal reported on an amended complaint filed by Brewer, Attorneys & Counselors on behalf of the NRA against New York Governor Andrew Cuomo and the New York State Department of Financial Services (DFS). The front-page article, “NRA Claims Economic Hardship Fighting NY Insurance Regs,” dated August 1, 2018, reports that the complaint alleges that without injunctive relief, the NRA could be forced to cut services for its members. Partner William Brewer was quoted as stating that the NRA is “suffering setbacks” due to the state’s actions.
“The amended complaint raises concerns about the material impacts to the NRA as a result of the actions of Governor Cuomo and DFS,” Brewer said. “Our client is suffering setbacks with respect to the availability of insurance and banking services—as a result of a political and discriminatory campaign meant to coerce financial institutions to refrain from doing business with the NRA. The actions of defendants are a blatant attack on the First Amendment rights of our organization.”
The lawsuit was filed in May 2018, after the state advised insurers to cut ties with the NRA. The suit argues that the state violated the NRA’s First Amendment rights in connection with regulatory guidance issued to financial institutions urging them to not do business with the NRA.
Hamra Trust Sues Transamerica, Alleges Improper Universal Life Insurance Premium Increases
Brewer, Attorneys & Counselors, filed a lawsuit on July 19, 2018, against Transamerica Life Insurance Company (“Transamerica”) accusing it of improperly implementing a plan to increase premiums by 168 percent on a multimillion-dollar universal life insurance policy purchased nearly two decades ago. The suit was filed in the United States District Court for the Central District of California on behalf of Michael K. Hamra, trustee of the Sam F. Hamra, Jr. and June S. Hamra Irrevocable Trust (“the Trust”).
The lawsuit involves a “TransSurvivor” policy purchased by the Trust from Transamerica in 1999 on the lives of Sam and June Hamra. The policy includes a death benefit of $5,000,000. Over the years, the Trust paid, and continues to pay, millions of dollars in premiums for the policy. However, in a notice sent by Transamerica to the Trust and all other TransSurvivor policyholders in April 2018, Transamerica announced that it would implement a 39 percent monthly deduction rate (“MDR”) increase on the policy in each of the next three policy anniversary dates – on a compound basis. The increase translates to an extraordinary total increase of 168 percent, plaintiffs allege.
According to the complaint, Transamerica did not offer any contractual justification for the increase. The complaint alleges that Transamerica’s conduct violates the express language of the policy and the implied covenants of good faith and fair dealing, as well as California’s Unfair Competition Law.
“Sadly, Transamerica’s anti-consumer conduct continues unabated,” the complaint states. “Plaintiff’s insureds are now in their eighties and, due to age-related underwriting considerations, life insurance protection from other sources is either unavailable or prohibitively expensive. Therefore, Transamerica’s actions strip Plaintiff of any life insurance protection unless [the Trust] accedes to Transamerica’s improper demands.”
National Review Piece Expresses Support of Firm Lawsuit
A commentary written by R.J. Lehmann published in the National Review on June 4, 2018, titled “New York’s Assault on the NRA Sets a Dangerous Precedent” expresses support for a lawsuit filed by the firm. The firm is representing the National Rifle Association (NRA) in a lawsuit filed against New York Governor Andrew Cuomo and the state Department of Financial Services (DFS) and its Superintendent, Maria T. Vullo.
The suit alleges that the state violated the NRA’s First Amendment rights in connection with regulatory guidance issued to financial institutions urging them to not do business with the NRA. Lehmann writes that the DFS’ “behavior sets a dangerous precedent that should trouble citizens across the political spectrum.”
He adds: “Seeing regulators open this Pandora’s box should be deeply concerning to those on both the right and the left. One easily could imagine similar motivated prosecutions of financial-services firms that do business with Planned Parenthood, tobacco companies, tech firms, the solar industry, or even the political campaigns of rival parties. The precedent set by these blatantly political regulatory actions undermines not only the insurance market, but the rule of law.”