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.”
Lawsuit Claims Richardson ISD Trustees Violated Texas Open Meetings Act (TOMA)
Brewer Storefront filed a lawsuit on July 6, 2018, in Texas state court on behalf of plaintiff David Tyson, Jr. against the Richardson Independent School District (RISD) and the seven members of the RISD Board of Trustees, alleging that they have continuously and systematically violated the Texas Open Meetings Act (TOMA). The fundamental tenet of TOMA is that, except for certain narrowly construed exceptions, all meetings of a governmental body must be open to the public. However, the complaint states that, instead of conducting all meetings in public, the Board members are “coordinating a backroom consensus” outside the view of the public.
The lawsuit states that, over the last seven years alone, the Board has voted unanimously on the overwhelming majority of more than 500 votes, and alleges that the votes were not preceded by any meaningful discussions or deliberations at the meetings at which the votes occurred. According to the complaint, plaintiff requests that all actions taken in violation of TOMA be declared void.
“Our client believes that Richardson ISD trustees are not being fully transparent about the operations of the school district,” says William A. Brewer III, partner at Brewer Storefront and lead counsel for plaintiff David Tyson. “Through its alleged violations of the Texas Open Meetings Act, the Board has deprived the citizens of Richardson of the right to know how the Board reaches its decisions – and denied them their lawful right to participate in the democratic process.”
An article in The Dallas Morning News, dated July 10, 2018, reports on the lawsuit and its significance to the local community. The Lake Highlands Advocate also reported on the filing.
Partner William Brewer Writes on Associate Compensation Practices in Law360
Partner William Brewer recently wrote an op-ed about legal industry compensation practices published by Law360. Titled “BigLaw’s Associate Salary Model is a Relic of a Bygone Era,” the commentary states that the traditional model of increasing associate salaries uniformly fails star associates, the firms they work for and, ultimately, the clients they serve.
“The BigLaw formula is broken – a relic of the out-of-touch apprenticeship model of a bygone era,” writes Brewer. “The reality is there should be a direct correlation between base compensation earned and the value an attorney provides to a firm and its clients.”
The article provides insights into the meritocracy system adopted by Brewer, Attorneys & Counselors – a model that rewards employees based on the value of their contributions. The article also discusses the firm’s multi-disciplinary practice, which employs professionals with backgrounds in business, investigations, computer science, and public relations.
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.”
UNHCR Recognizes Brewer Foundation IPPF Competition and Student Semifinalists
The UNHCR (The UN Refugee Agency) reported on a donation the agency received from the 2016-17 semifinalists of the Brewer Foundation / New York University (NYU) International Public Policy Forum (IPPF). After debating the topic of refugee resettlement, the students from duPont Manual High School in Louisville, Kentucky, donated their $1,500 in IPPF winnings to assist refugees.
The article, “With Heads and Hearts, Five Kentucky Teens Rally for Refugees,” discusses the students’ involvement in the competition and their backgrounds as first-generation Americans “with deep personal connections to global migration, refugee issues and generous communities that warmly welcome strangers.”
In a letter to the teens, UN High Commissioner for Refugees Filippo Grandi praised their “spirit and goodwill." He also commended NYU and the Brewer Foundation for “fostering such a timely debate” and allowing students to “explore the refugee issue and other important topics with rigor and reflection.”
Significant Mobile Gaming Lawsuit Brought by App Developer Color Switch Proceeds
In an important development for Color Switch LLC and Color Switch Productions, Inc. (“Color Switch”), a federal judge in California granted a motion to allow Color Switch to serve a lawsuit against Fortafy Games DMCC (“Fortafy”) via email.
Color Switch attorneys Brewer, Attorneys & Counselors (“Brewer”) attempted multiple times to serve the lawsuit on Dubai-based Fortafy, but found the Fortafy company was not present at its listed address in the United Arab Emirates. Plaintiffs sought permission to serve Fortafy by alternative means, and U.S. Magistrate Judge Jennifer L. Thurston with the United States District Court for the Eastern District of California, granted the motion on May 21, deciding that service via email is “appropriate in this action.”
The lawsuit was filed on March 26, 2018. In granting the motion, the judge noted that, “…Fortafy has clearly indicated its preference to only communicate through email, and the co-founders of Fortafy have recently been in contact with Plaintiffs through several email addresses.” The judge added, “Thus, service at the addresses identified by Plaintiffs satisfies the due process requirement for the service method to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections.”
Color Switch seeks a declaration that it is the rightful owner of the game it developed, and seeks damages for the infringement of its copyright and theft of its property rights from Fortafy.. Fortafy published the Color Switch game app but refused to return the game and related property when the parties’ agreement ended in December 2017, essentially holding the game “hostage” and preventing millions of users from accessing it. The Color Switch game was created by famed developer David Reichelt. The gaming app has been downloaded more than 200 million times.
Bill Brewer praised the court’s decision. “We appreciate the court’s interest in this issue, and look forward to pursuing this matter further,” Brewer said. “We believe this case underscores the rights and responsibilities of parties involved in the development, design and marketing of gaming applications.”
Wall Street Journal Opinion Piece Focuses on Lawsuit Filed by the Firm
The Wall Street Journal published an opinion piece on May 15 by James Freeman, assistant editor of the WSJ editorial page, in support of a lawsuit filed by the firm. The piece, “The NRA vs. Authoritarianism,” explores an alleged effort by New York Governor Andrew Cuomo and the New York State Department of Financial Services (DFS) to attack the First Amendment rights of the National Rifle Association (NRA) through “guidance” (to not do business with the NRA) provided to businesses that are regulated by DFS.
Mr. Freeman writes, “Read the lawsuit filed on Friday by the National Rifle Association against New York Gov. Andrew Cuomo, his Department of Financial Services, and its Superintendent Maria Vullo. Also check out the governor’s April 19 press release on the topic. Then imagine that the target of Mr. Cuomo’s recent assault on political speech is anyone other than the gun-rights group.”
The Freeman opinion piece continues, “…it’s wrong to use powers intended to ensure the health of financial institutions to silence those with whom the governor disagrees on public policy. The main “reputational risk” here for financial companies is that they will serve clients who are unpopular in the governor’s office. If Mr. Cuomo can then freeze the otherwise law-abiding clients out of the financial system, he can put them out of business. That’s tyranny, and if the Cuomo precedent stands against the NRA, count on it being used against other controversial speakers in the future.”