Published & Unpublished State & Federal Decisions
Restructuring of Lloyd's of London, Executive Life Insurance Company (ELIC), California Homeowner's Insurance Market, Demutualization of California's Largest Mutual Insurance Company
Restructuring of Lloyd's of London
Mr. Palmer was the attorney responsible for coordinating the litigation and restructuring of Lloyd's of London ($24 billion, approx.) that protected consumers and policyholders in California and the United States. See, for example, Mr. Palmer's appearance in the published decision of Allen v. Lloyd's of London, 94 F.3d 923 (4th Cir. 1996) (Held: The policies of the United States securities laws did not override the parties' choice of forum and law for resolving disputes; thus, the contractual provisions selecting the law of and a forum in the United Kingdom were enforced).
Mr. Palmer was presented with a small commemorative plate in London by Sir David Rowland, the Chairman of Lloyd's, who was later knighted by the Queen of England for his role in strengthening this famous syndicate of English companies. Mr. Palmer was also the lead attorney responsible for negotiating a Memorandum of Understanding between the Department of Corporations and the Department of Insurance in the Governor's Office that allowed each agency to oversee and regulate Lloyd's of London. Based primarily on his work on behalf of California and the United States, Mr. Palmer was presented with the flag flown over the State of Texas by the Insurance Commissioner of Texas, followed by a short meeting with the former Texas Governor George W. Bush.
Executive Life Insurance Company (ELIC)
Mr. Palmer recently testified on behalf of the California Department of Insurance in American Insurance Association v. Garamendi, 539 U.S. 396 (2003) (discussed below), and in Commissioner John Garamendi's case involving the Executive Life Insurance Company (ELIC) and a French investment consortium. The value of the ELIC case is estimated at $1.2 billion, and the Commissioner recovered $900 million.
California Homeowner's Insurance Market
Mr. Palmer worked on the restructuring of the private California Homeowner's Insurance Market and avoided its collapse by assisting (in a minor role) with the creation the California Earthquake Authority (or CEA), a $12 billion dollar, vertical and horizontally risk-layered, government/private sector business entity. Mr. Palmer received an award recognizing his work. Mr. Palmer presented a paper on the subject of the CEA to the Chinese Bank and Insurance Company in Beijing, China.
Demutualization of California's Largest Mutual Insurance Company
Mr. Palmer was responsible for leading California's legal team effort to successfully demutualize and restructure Pacific Mutual Life Insurance Company into Pacific Life Insurance Company. Pacific Life is one of California's largest, most successful, and best run life insurance companies with significant assets, making it one of the largest companies of its kind in the world. Most important, Mr. Palmer worked to create safeguards and to protect the policyholders within a unique "closed block" that preserved their ownership and equity rights in the former mutual company. As a mutual company, the former policyholders were also owners of the company, and these rights could have been lost when the company underwent its restructuring. Ultimately, Pacific Life was the only demutualization that was not challenged and sued in a class action by the trial bar during that period of time; roughly 19 other similar transactions were either sued or halted.