DLA Piper recently represented Applied Underwriters, Inc. in a bench trial victory in California state court after Roadrunner Management Services Inc. and Airport Connection Inc. alleged that Applied sold them a fraudulent worker's compensation program.
Before trial, the plaintiffs obtained a ruling that part of the worker's compensation policy was void as illegal because it was not filed with the state regulator. At trial, however, Ventura County Superior Court Judge Henry J. Walsh found that the insured suffered no injury from the fact that the program was not filed, and no fraud took place.
In its ruling in favor of Applied, the court dismissed all of the insured's claims and awarded damages to Applied on its counter-claims. The judge also found that because Roadrunner and Airport Connection elected to challenge part of the insurance program as illegal, they were required to pay more to Applied under the remaining legal part of the program than they would have had to pay had they chosen not to litigate.
DLA Piper's representation of Applied Underwriters is led by partner Shand Stephens (San Francisco). The trial team was led by Anthony Coles (New York) and included partner Amanda Morgan (San Francisco); of counsel Michael Hepworth (New York); and associate Sean Newland (Sacramento).