They demonstrate what should be obvious: Single-digit multipliers are more likely to comport with due process, while still achieving the State's goals of deterrence and retribution, than awards with ratios of 500 to 1 [as in Gore], or in this case, of 145 to 1." It determined that Conseco's lead sheets and documents in its loan files are trade secrets, but also determined that Conseco's customer lists and certain financial information are not trade secrets. Conseco withdrew from the deal after deciding that the asking price would cause too much accumulation of debt. 2 Who bought out Conseco Finance Servicing Corp? Removing a Lien on a Bankrupt Financial Institution. How to reverse Diabetes Belly fat: The removal of Diabetes Michigan AG sues Bay Co. contractor who allegedly drained wetland, Mancino's GM accused of embezzling over $100,000, Larkin Township greenhouse to reopen as Rooted by Keits on Friday, Thousands gather for 37th Freeland Walleye Festival despite rain, clouds, MHS alum Krawczak 'oozing confidence' for T'wolves, Loons win 5 of 6 at Fort Wayne behind dominant pitching. No doubt the language of State Farm, in which the Supreme Court suggests that "four times the amount of compensatory damages might be close to the line of constitutional impropriety," is the foundation for North American's allegation of constitutional error. Similarly, an investment in a restaurant chain that featured buckets of spaghetti fizzled. Ann. The court rejected this argument noting that this was a geographic area where everyone knows everyone else, "and you simply need to `see and ask'" to identify customers. Homeowners who faithfully pay the mortgage every month have every right to expect the mortgage company to agree to release the lien on the property once the debt is paid. It moved the balance of the operations from its largest purchase, Bankers National, to its ballooning Carmel headquarters. In 1992, just ten years after starting his business, Hilbert was one of the highest paid executives in the United States. By his own admission, Keeler's increased compensation was due in part to his work in the company's subprime market expansion. Rapid City, South Dakota. And, one of North American's senior managers, Carrie Hiatt, knowingly authorized Rick Lasek to work in North American's Des Moines office while Lasek was still employed by Conseco, There was evidence of wrongdoing in several North American locations including: St. Louis, Missouri; Collinsville, Illinois; Springfield, Illinois; Wichita, Kansas; Davenport, Iowa; Colorado Springs, Colorado; and Overland Park, Kansas, North American's senior manager in charge of the company's expansion into the subprime market, Ken Keeler, received compensation based on loan production. We will not set aside the jury verdict unless there is a complete absence of probative facts to support the verdict. The bank should mail you a check for the remaining balance in your account. Despite a few unwise choices, Conseco was recognized for its highly conservative approach to investing. Your situation isn't that uncommon, mortgage companies go out of business all the time and title companies are used to dealing with issues like these. Removing a state tax lien from public record, What Is a Lien Release on a Car and What to Expect, How to Secure a Lien Release in Illinois Instantly, How to Secure a Vehicle Lien Release Immediately, How to Get a Capital One Lien Release Hassle-Free, 3 Easy Steps to Filing a Release of Lien Form In New Mexico, State Tax Lien Statute of Limitations In California Explained. The company's net income increased 46 percent in 1992 to $170 million, and 75 percent in 1993 to $297 million. Sanchez, 37 F.3d at 723. Before MORRIS SHEPPARD ARNOLD, RICHARD S. ARNOLD, and SMITH, Circuit Judges. In 1982, Hilbert acquired his first life insurance company, Executive Income Life Insurance Co., for $1.3 million. Its goals for 1994 included increasing its assets under management by 30 percent. He slashed the aggregate workforce of the five companies he had purchased between 1985 and 1989, for example, from 850 to 450 by 1993. Shortly after the Green Tree deal, the company recruited General Electric wizard Gary C. Wendt as CEO, awarding him one of the lushest contracts in history, worth at least $75 million and gauranteeing him a retirement annuity of $1.5 million yearly. Hilbert drifted into the insurance business in the 1970s. Podner said he copied the files in order to aid an employee who wished to make the transition to loan originator. The company said Friday it would halt interest payments on about half of its $2.6 billion in bonds for at least the next 30 days. The district court, however, denied Conseco's remaining request for injunctive relief relating to North American's solicitation of its employees. However, a corporate defendant is required to pay punitive damages so long as the employees were acting within the scope of their employment. Conseco Finance became insolvent after it failed to make a $4.7 million payment that was due Dec. 4. Conseco Finance Corp. accepted a bid to sell its $23 billion mobile home loan portfolio to a New York investment partnership and another piece of its business to General Electric's consumer lending unit, said Mary Beth Schwartz, a spokeswoman for Conseco Finance, based in St. Paul, Minn. They might not be able to make things happen for you, but could give you some insight on how the county handles these matters. Hilbert, now with a few successful acquisitions under his belt, took Conseco public in 1985 in an effort to boost its investment capital. On appeal, North American questions not whether Conseco proved sufficient connection of its damages to North American's alleged wrongful conduct but whether Conseco proved it had incurred damages at all. There are several ways to get a Release of Lien if you originally financed your home with Conseco. I did not know it had a lien until i tried to register at the DMV the lien is with Greentree financial,which was bought out by consco/conseco financial which went bankrupt in 2002. If you still seem to be getting nowhere though, perhaps a call to your local state's Attorney General might help unless you have a lawyer on retainer that could help. And, consistent with Rule 50, North American restated-in similar but not precise language-its previously articulated proximate cause damage theory, " [Conseco] failed to prove a causal connection between any conduct properly actionable and any loss to [Conseco]." By the end of 1987, Conseco's assets had grown to a whopping $3.4 billion, and its workforce had grown almost twenty-fold since 1984, to nearly 500. You're all set! It further found that Conseco was likely to succeed on its claims of misappropriation of trade secrets against North American relating to the actions of Podner and Kattleman, but not Bristol. It then entered an injunction against North American, Podner, and Kattleman from soliciting customers who had documents taken from their loan files. In 1998, Conseco purchased the former Greentree Financial, one of the largest financiers of mobile homes, in an attempt to diversify into consumer financial services. When Conseco went hunting for acquisition candidates, it looked for organizations with sound asset portfolios. CCP's first acquisition was Great American Reserve Insurance Co. for $135 million. Punitive damages are also subject to limitations imposed by due process. Rapid Growth: Mid-1980s Through the Early 1990s. What is BenefitNOW account? Indeed, through possession of these loan files, Conseco is in a unique position of being able to analyze its customers' specific financial needs and identify those current customers who may need additional Conseco financial services. However, the rules are such that "`technical precision is not necessary in stating grounds for the motion so long as the trial court is aware of the movant's position.'" Lincoln also received a merger proposal from Redgate in 1985. The venture failed. A review of the record leaves us with no doubt that the jury had sufficient evidence before it (albeit conflicting evidence) to conclude that North American had engaged in unfair competition and caused damage to Conseco. Zachar, 363 F.3d at 72 (quoting Correa v. Hosp. If colloquy between counsel and the trial court fleshes out the motion, it may provide the opposing party with the requisite notice. The company also made loans of nearly $550 million to its executives and directors. State Farm Mut. But if the lender of record has ceased to exist, it falls to the current holder of the mortgage to release the lien. Quick and easy. Co. v. Haslip, 499 U.S. 1, 23-24, 111 S. Ct. 1032, 113 L. Ed. Here are the three easy steps that you need to take: And thats it! The lead sheets are a product of a specialized-and apparently quite effective-computer program that was uniquely Conseco's. Although the two companies merged to form one holding company late in 1983, internal operations still reflected Hilbert's original concept. One of the most important aspects of this world is the emergence of man as a creator. For the foregoing reasons, we affirm the opinion of the district court in part and reverse in part. Having concluded that these lead sheets and loan files constitute trade secrets, we must next consider whether Conseco produced evidence of actual or threatened misappropriation of these trade secrets. Upon arriving at North American, Bristol gave these names and numbers to loan originators as leads, who contacted these former Conseco customers. The companies were Consolidated Marketing Group, Inter-State Service, Inc., and TLC National Marketing Company, which sold products door-to-door. The court also defined "readily ascertainable" to mean that the plaintiff did not spend a great deal of time or effort compiling that information. We do, however, make this procedural observation-North American failed to raise the issue of submissibility of the tortious interference claim in its directed verdict motion either at the close of Conseco's case or at the close of all evidence. COPYRIGHT MATERIAL OMITTED COPYRIGHT MATERIAL OMITTED Counsel who presented argument on behalf of the appellant was Thomas C. Walsh of St. Louis, MO. Podner did not specify the exact number of loan applications copied. Who started Conseco insurance? Although Conseco's rise was impressive, rampant acquisition and expansion had a downside for the holding company. Targeting 'middle America,' or U.S. households with annual incomes between $25,000 and $75,000, Conseco's insurance products range from medical to life. It quickly moved Lincoln's headquarters from Memphis to Conseco's burgeoning offices in Carmel, Indiana. We will leave the question of whether tortious interference remains an independent claim to another court and another day. It's hard to . The following year Conseco increased its share to 90 percent. In May 1994, CCP II made the first in a series of expected acquisitions when it agreed to purchase Statesman Group, Inc. for $350 million. If so, it should list the title company who handled it and you can reach out to them. Is there a fee for closing a Chase bank account? The problems started in 1998 when the company bought Greentree Financial, a mobile and manufactured housing lender, in 1998. That statute authorizes a fine of $5,000. Hilbert's company acquired Consolidated National Life Insurance Co. in August 1983. James S. Cole of St. Louis appeared on the brief. In September the company entered into a $344 million partnership with American Life Holdings, Inc., which included subsidiaries American Life and Casualty and Vulcan Life. The Title Company involved (god I hope there is one involved) will pull their old deal file and figure out what went wrong. R. Civ. Shearson Lehman Brothers advised Lincoln Income Life Insurance. As such, the district court abuses its discretion in permitting a punitive damage award to stand when the award is so disproportionate to the factors relevant to the size of the award that it reveals "improper motives or a clear absence of the honest exercise of judgment." A creditor may file a lien against you for any goods or services you contracted to purchase but failed to actually pay for. Some of these former employees also expressed concern about Conseco's overall future financial performance. 7, Report #162736. Once a lead sheet is received in a branch office, the office manager then forwards it to a loan originator, who calls these potential customers to offer Conseco's financial services. We use cookies. The partnership, CFN Investments, and GE Consumer Finance emerged as winning bidders in a 21-hour auction that ended about 5 a.m. CST Wednesday at the Chicago offices of Conseco's bankruptcy lawyers. The Green Tree acquisition stirred up numerous questions, including whether Conseco had too much debt and whether Green Tree, which had a past of dubious accounting practices, was growing too rapidly--25 to 30 percent a year--and providing loans to high-risk borrowers. Cir. Conseco counters that while some of the information within these lead sheets can be harvested from these two sources, its proprietary computer program provides a unique depth of information that cannot be obtained from alternative sources and its loan files contain confidential customer information. Private Foundations VS Donor-Advised Funds, Valuation, Fundamentals, Momentum: The Case for Mid-Cap Value Stocks. However, a post-trial motion for judgment "`may not advance additional grounds that were not raised in the pre-verdict motion.'" Rockport Pharm., Inc. v. Digital Simplistics, Inc., 53 F.3d 195, 197-98 (8th Cir. Copyright in this article as an independent work may be held by the author. KKR, Varde and Deutsche buy GE Capital consumer finance arm for $6.3 billion. Emmenegger v. Bull Moose Tube Co., 324 F.3d 616, 619 (8th Cir. GE Consumer Finance, a unit of General Electric Co., will buy the assets of Mill Creek Bank, a wholly owned subsidiary of Conseco Finance, for $310 million. Copyright 2003 by The National Underwriter Company in the serial publication. Conseco, Inc. provides insurance, investment, and lending services to more than 12 million customers. By entering your email, you agree to sign up for consumer news, tips and giveaways from ConsumerAffairs. All rights reserved. North American argues that the award is based solely on its net worth and is so excessive that it violates due process. St. James Press, 2000. Conseco is the nation's 26th-largest life insurance company. The auction also drew bids and counter-bids from a partnership of Warren Buffett's Berkshire Hathaway Inc. and a consortium that included the Wall Street investment firm Bear Stearns. HOwever, DiTech said that they only acquired ACTIVE accoutns from Conseco and since it was closed prior to DiTech acquiring them, that they can't do anything about it. This instant case involves thousands of customers-located throughout the country-who were identified through a complex computer system.
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