Kane Russell Coleman Logan Successfully Defends Insurance Broker in Fraud Claim Arising from $70 Million Life Insurance Policy

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Larry Bowman and Don Waltz, attorneys in the Dallas office of Kane Russell Coleman Logan PC, successfully defended an insurance broker in a complex case involving allegations of fraud and breach of fiduciary duty. The trial court granted a Defense Motion for Summary Judgement, which was upheld on appeal.

The court understood our client’s role in this; there was no fraud, and certainly no liability for the insured’s losses.

Larry Bowman and Don Waltz, attorneys in the Dallas office of Kane Russell Coleman Logan PC, successfully defended John P. Duvall, an insurance broker in a complex case involving allegations of fraud and breach of fiduciary duty. The trial court granted their Motion for Summary Judgement, which was later upheld on appeal.

The plaintiff in the case, Jon Jessen, purchased $70,000,000 worth of life insurance policies between May and September of 2008 from Duvall. Jessen was advised by his long-time tax attorney and financial advisor, Joseph Bond, that this would provide tax benefits and estate planning protections in the event of Jessen’s premature death. Jessen maintains that Bond told him the investments were a safe place to deposit substantial sums for a few years and that the policies could be sold for a profit on a secondary or “viatical” market.

The financial markets collapsed in September 2008, and Jessen lost more than $3,200,000 by the time the last policy was sold in late 2011. Jessen filed suit on September 30, 2013, against Bond and his law firm, every insurance company that sold the policies, as well as insurance agent Duvall, claiming a conspiracy was involved.

“The plaintiff took a calculated risk buying $70 million in life insurance as an investment,” said Larry Bowman, a director in the Dallas office of Kane Russell Coleman Logan. “When the risk didn’t pay off, he sued everyone in sight to try and recoup his losses, but that’s just not how it works. The court understood our client’s role in this; there was no fraud, and certainly no liability for the insured’s losses.”

Kane Russell Coleman Logan is a full-service law firm with offices in Dallas and Houston. Formed in 1992 with five lawyers, today KRCL employs more than 80 attorneys. The Firm provides professional services for clients ranging from Fortune 500 companies to medium-sized public and private companies to entrepreneurs. KRCL handles transactional, litigation and bankruptcy matters in Texas and throughout the country.

SOURCE: Kane Russell Coleman Logan PC
TRIAL COURT: 61st District Court, Harris County, TX
CAUSE NO. 2013-58328
APPELLATE COURT: Fourteenth Court of Appeals
CAUSE NO: 14-16-00869-Cv

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Jennifer Bergman

Sheila Sheley
Kane Russell Coleman Logan PC

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