New York Law Journal Reports on Firm’s Advocacy for NRA
The New York Law Journal reports that the NRA submitted a new filing in federal court in New York on August 24, 2018, urging a federal judge to reject a motion by the state of New York to reject the organization’s lawsuit. The NRA 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.
The article quoted Partner William Brewer, lead attorney for the NRA in the matter. Brewer said of the state’s motion to dismiss that, “They created a narrative that they want to respond to with little or no resemblance to the complaint we actually brought that they seek to dismiss.”
“The NRA is not complaining about the fact that defendants seek to regulate insurance generally, or inquire about Carry Guard specifically,” Brewer added. “What the NRA is complaining about is that defendants are attempting to coerce insurance companies and banks to blacklist the NRA—to extinguish what are concededly lawful business relationships. And, at least in some instances, we already know they’ve been successful.”
Brewer also emphasized that, “Government officials have First Amendment rights too.” He added, “But when government officials use their position to coerce private actors, not persuade them, to adopt a particular point of view, that conduct is subject to strict scrutiny.”
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.”
Dallas Morning News Watchdog Columnist Applauds Brewer Storefront TOMA Action
Dallas Morning News Watchdog Columnist Dave Lieber wrote a column, “Here’s How a Trustee Says School Boards Violate Texas Open Meetings Law,” dated August 3, 2018, that explores a newly filed Brewer Storefront Texas Open Meetings Act (TOMA) lawsuit. The column focuses on a lawsuit filed by Brewer Storefront, the firm’s community service legal affiliate, against Richardson Independent School District (RISD) and the RISD Board of Trustees.
In part, Lieber writes that the “12-page lawsuit is the most detailed explanation The Watchdog has seen for how a public government board can ignore the open meetings law.” He writes that the Brewer Storefront plaintiff is “showing leadership here by standing up to a widespread secretive culture that enables public officials to keep private what's supposed to be public.”
Lieber is a veteran Dallas/Fort Worth investigative journalist whose focuses on “exposing bad practices in business and government.”
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.”
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.”
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.”