On July 26, 2018, Advance Trust & Life Escrow Services (Advance Trust) filed a cost-of-insurance class action lawsuit against Security Life of Denver Insurance Company (Security Life), a subsidiary of Voya Financial, Inc. (Voya). The complaint contains a single count of breach of contract. The complaint is in the complimentary package offered at the end of this post. On August 28, 2018, Security Life answered the complaint. (See Advance Trust v. Security Life, U.S. District Court, District of Colorado, Case No. 1-18-cv-1897.)
The case is in the hands of U.S. District Court Judge Daniel D. Domenico. President Trump nominated him in January 2019. The Senate confirmed him in April 2019 by a vote of 55-42 along party lines.
Advance Trust's Motion to Certify a Class
On August 23, 2019, Advance Trust filed a motion to certify a class. On April 13, 2020, after extensive briefing, the judge denied without prejudice Advance Trust's motion to certify a class.
Security Life's Motion for Summary Judgment
On July 22, 2020, Security Life filed a motion for summary judgment. Interestingly, Security Life said in its motion that Advance Trust is a securities intermediary for Life Partners Position Holders Trust (Trust), which owns five universal life insurance policies originally issued by Security Life, and that the Trust is a successor owner, through bankruptcy, of a company that purchased the policies from the original policyholders in the secondary market. Brian Pardo's Life Partners Holdings, Inc. filed for bankruptcy protection on January 20, 2015. See, for example, No. 81 (January 22, 2015). Security Life's motion for summary judgment is in the complimentary package offered at the end of this post.
The Judge's Order
On January 6, 2021, after extensive briefing, the judge granted Security Life's motion for summary judgment in part, denied the motion in part, and preliminarily certified a class of policyholders. The judge's order, which prompted me to prepare this post, is in the complimentary package offered at the end of this post.
Despite the fact that this case is in its 18th month, it still has a long way to go. Fairly soon we should learn what the members of the class will be told when they are notified of the existence of the lawsuit. Farther down the road, we will probably learn what type of settlement may be reached. I plan to follow developments in the case.
I am offering a complimentary 71-page PDF consisting of the July 2018 complaint (26 pages), Security Life's motion for summary judgment (21 pages), and the judge's January 2021 order (24 pages). Email firstname.lastname@example.org and ask for the January 2021 package relating to the case of Advance Trust v. Security Life.