In contrast to CCP, the new partnership was designed to focus on the acquisition and improvement of larger companies valued at $350 million to $1.5 billion. If the Rule 50(a) motion is denied and the case is submitted to a jury, the movant must renew the motion once again in order to preserve the issue for appeal. 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. What happens to my money if the bank closed my account? Shane and J-Ville are on the money here for sure this is a responsibility of the Title Co. from the 2003 deal. [14], In 2015 February, CNO Financial sold its Hyderabad-based India operations to Cognizant.[15][16]. Conseco, Inc. -- Company History SYDNEY (Reuters) - A consortium of private equity firm KKR & Co LP KKR. Cooper Indus., Inc. v. Leatherman Tool Group, Inc., 532 U.S. 424, 435, 121 S. Ct. 1678, 149 L. Ed. Author: Wedgefield, South Carolina. In support of this motion, Conseco identified three former employees that it alleged had misappropriated its trade secrets. In order to avoid this constitutional infirmity, the punitive damages award must be remitted to $7 million, an amount that is sufficiently punitive, but that does not violate notions of fundamental fairness. 1996). At trial, Conseco's evidence established that thousands of Conseco's lead sheets were in North American's possession, that employees worked simultaneously for both companies, that Conseco's loan documents were faxed to senior management at North American, and that employees from several of Conseco's offices had taken Conseco's loan documents to North American.3 Conseco offered expert testimony that approximately five percent of Conseco's lead sheets result in funded loans, each with an average-net profit per loan of $4,000. To its investors' chagrin, however, several of Conseco's past forays into nontraditional investments had not performed as well as its core insurance and financial holdings. Unsubscribe easily. Rapid Growth: Mid-1980s Through the Early 1990s. In fact, it experienced stellar growth during 1992 and 1993. The company's headquarters is located in suburban Indianapolis, Indiana. Conseco is a leading provider of financial security for life, health and retirement needs. at 416-417, 123 S. Ct. 1513 (2003). Furthermore, these customer loan files eventually made their way to his office at North American. The portfolio of mobile-home loans and other consumer finance products will be sold under an agreement with two groups of investors. The district court, however, denied Conseco's remaining request for injunctive relief relating to North American's solicitation of its employees. The instant appeal ensued. Innovative Beginnings in the Late 1970s and Early 1980s, Stephen C. Hilbert founded the company and guided its meteoric rise. See Fed. Conseco, in its "First Amended Complaint," added two additional counts-participation in breach of fiduciary duty, and a separate count for injunctive relief. Here are some things that can have a lien put on them. Sanchez, 37 F.3d at 723. Walsh, 332 F.3d at 1158 (quoting Cruz v. Local Union No. Conseco claimed the acquisition was a perfect fit, as both companies served the same target market, but many industry observers were skeptical, and Conseco's stock took a plunge. In recent years, Conseco has been one of the most successful insurance companies in the United States. Under this standard, the district court will only be reversed when "its ruling is obviously insupportable." The company also made loans of nearly $550 million to its executives and directors. We remand this case to the district court for entry of an amended judgment consistent with this opinion. If you have any questions or clarifications, you can also reach out to Conseco Finance Servicing Corp directly at: The challenge here is that your requests can be ignored, forgotten, or purposely mishandled. Kimzey v. Wal-Mart Stores, Inc., 107 F.3d 568, 576 (8th Cir. Quick and easy. Do you have the closing paperwork (Final HUD-1 settlement statement) from that refinance? What Happens If You Inherit a House With a Lien? The problems started in 1998 when the company bought Greentree Financial, a mobile and manufactured housing lender, in 1998. If you continue to use the site, we will assume that this suits you. Also, in order to be considered a trade secret, the information must be the subject of efforts that are reasonable under the circumstances to maintain its secrecy. The venture failed. However, the district court denied North American's summary judgment motion relating to misappropriation of lead sheets, documents in Conseco's loan files, unfair competition, and tortious interference with business relations. 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. The company's stock had returned an average of 39 percent a year since becoming a public company in 1985. 'You have to ask the question, `Have they found a new way to make white bread? Here are the three easy steps that you need to take: And thats it! Consequently, we agree with the district court that the lead sheets and the information contained in Conseco's customer loan files constitute trade secrets within the meaning of the Missouri Uniform Trade Secrets Act.6. As Conseco headed into 1998, the company had a number of accomplishments under its belt. They also bought life insurance company Colonial Penn later that year, changing their name to Conseco Direct Life. As noted by the district court, North American management knew that employees were working and being paid by both companies at the same time.12 Rather than undertake any investigation, corrective, or disciplinary action, it elected to use the dual employment as a "model" in other offices. On May 11, 2010, the board of directors officially approved changing the holding company's name to CNO Financial Group. All I can say is, I'm buying more.' Furthermore, Conseco takes reasonable steps to ensure the secrecy of these files. Is Conseco still in business? - Short-Fact Well GreenTree Financial went bankrupt and their accounts were taken over by Conseco Financial. Conseco, based in the Indianapolis suburb of Carmel, employs about 10,000 people and listed $52.3 billion in assets and $51.2 billion in debts in its bankruptcy filing. Conseco Finance Servicing Corp., Formerly Known As Green Tree Financial However, because of the significant variance between the large actual damage award and the resulting punitive award, we must consider the nature of North American's conduct and the harm suffered solely by Conseco. The company collapsed under a huge debt load resulting from a rash of acquisitions in the 1990s, including the $6 billion purchase of Green Tree, the nation's largest lender to mobile-home buyers. On appeal, North American argues that the district court erred when it 1) submitted the unfair competition claim to the jury, 2) failed to grant judgment as a matter of law, 3) found that the compensatory award was supported by the evidence, and 4) allowed the punitive damage award to stand. Conseco Inc., a major provider of life and health insurance, agreed to acquire Green Tree Financial Corp., a subprime-market lender best known for financing mobile-home purchases, in a stock. Keep in mind, just because a company services a loan today doesnt mean theyll continue to do so long term. 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. Moreover, despite the company's stock price troubles, total revenues continued to grow; for the nine months ended September 30, 1999, revenues reached $5.92 billion, up from $5.75 billion for the comparable period in 1998. CCP's first acquisition was Great American Reserve Insurance Co. for $135 million. In order to recover damages for unfair competition, Conseco was required to prove 1) the existence of a trade secret, 2) the communication of the trade secret to another, while that former employee was in a position of trust and confidence with Conseco, and 3) the use of the trade secret that damaged Conseco. Share & Print. Although Podner claims he made these copies in order to help a fellow employee make the transition to loan originator, Conseco provided evidence that would allow a reasonable finder of fact to determine that a threat of misappropriation existed with regard to these specific files. Another route you can take is to reach out to the county recorder-clerk's office and ask how they deal with reconveyances for trust deeds from companies that are no longer in business. Copyright 2023 Consumers Unified LLC. There was an article in Business Insider awhile back that had this same topic. CNO Financial Group, Inc. (formerly Conseco, Inc. (from Consolidated National Security Corporation)) is an American financial services holding company based in Carmel, Indiana. Satisfied with its recipe for acquiring and improving insurance companies, Conseco stepped up its acquisition efforts in 1986. Finally, we turn our attention to the punitive damage award and consider the three distinct challenges raised by North American-whether the award was (1) against the weight of the evidence, (2) in violation of due process, and (3) grossly excessive. To complement that holding company's subsidiaries, Security National of Indiana was established to develop and market new life insurance products and services. 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. It moved the balance of the operations from its largest purchase, Bankers National, to its ballooning Carmel headquarters. Merrion Group analyst David Erb said CFN may have bought a lot of Conseco's asset-backed securities, which trade at steep discounts, and may plan a controlled liquidation of the firm once it gets bankruptcy protection. Hilbert's strategy seemed relatively simple to most observers: purchase troubled insurance companies with potential and increase their value by turning them around. James S. Cole of St. Louis appeared on the brief. These documents contained information concerning Conseco's internal operations, including monthly retail point income reports generated by each Conseco office, reports ranking the retail volume by branch, reports of retail loans funded by region, financial summaries of each branch, expense ratio reports, expense analysis reports, expense analysis retail volume variance reports, and reports on credit insurance protection. In April 2014, it was ranked among the 50 most-trusted financial institutions in America by Forbes. If specificity is lacking, judgment as a matter of law may neither be granted by the district court nor upheld on appeal unless such a result is "`required to prevent manifest injustice.'" North American competes for individuals in the same market. Mr. Erb said that the buyers could sell off Conseco Finance's $2.9 billion credit card receivables portfolio and $6 billion . 6 Are there fees for closing a bank account? Bristol also returned a number of documents at his deposition, in accordance with the district court's TRO. State Farm, 538 U.S. at 425, 123 S. Ct. 1513. By Darla Mercado. St. James Press, 2000. Removing a Lien on a Bankrupt Financial Institution. Both motions were denied by the district court, and the case was submitted to the jury on Conseco's claims of unfair competition and tortious interference. It also agreed to commit $5 million in 1993 to Rick Galles Racing, an Indy Car racing team in which Conseco owned a 33 percent share. Federal law allows you to withdraw as much cash as you want from your bank accounts. One of the most important aspects of this world is the emergence of man as a creator. Lincoln also received a merger proposal from Redgate in 1985. Conseco also filed a motion for a temporary restraining order prohibiting certain North American employees from taking, using, or disclosing documents from Conseco's loan files, and to return any information taken from Conseco's files. Conseco renamed Green Tree Conseco Finance Corp. in 1999 and moved toward the next century intent on strengthening operations. However, these were not the "specific grounds" on which North American argued below. Security National Corp. was formed to acquire and manage existing life insurance companies. Another of North American's witnesses, Perry Schatz, testified only five percent of Conseco's leads result in a funded loan. 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. The Supreme Court described the first Gore guidepost-the degree of reprehensibility of the defendant's conduct-as the most important indicium of the reasonableness of a punitive damages award. Conseco Announces Major Restructuring Plan - TheStreet Dec 17 2008. And, interestingly, much of the improper activity occurred after Conseco filed suit, further reflecting the reprehensibility of North American's actions. Conseco acquired the remaining 63 percent interest in American Life in September 1996. Further, we are satisfied with the sufficiency of the evidence supporting the jury's award of punitive damages. Upon emergence from Chapter 11, Conseco will be engaged exclusively in the insurance business, the company says. This instant case involves thousands of customers-located throughout the country-who were identified through a complex computer system. GE Capital was sold for parts in 2013, and your mortgage was probably bought by GM Credit (now Ally Bank) or Wells Fargo. It is important that you conduct whichever is most appropriate for your case to guarantee the best outcome. Indeed, the conduct involved repeated actions in multiple offices.13 North American's actions also involved trickery and deceit, and an utter disregard for Conseco and-even more heinously-the privacy of its customers. It is very important to do your own analysis before making any investment based on your own personal circumstances and consult with your own investment, financial, tax and legal advisers. In 1998 Conseco placed additional effort on building brand awareness. Wendt is throwing ballast overboard as fast as possible. Before MORRIS SHEPPARD ARNOLD, RICHARD S. ARNOLD, and SMITH, Circuit Judges. Importantly, though, Hilbert also searched for insurers that were inefficient and bloated with excess personnel. Questions persisted, and in late 1999 Conseco announced plans to pare debt and slow growth. individuals with low credit scores. However, if the account is opened for some specific purpose and the purpose still exists, banks may in such cases refuse to close the account. Id. Here the damage award is further supported by the remaining tortious interference claim. Quite the contrary, North American encouraged others in its offices to replicate the St. Louis scheme, and designated its St. Louis office as a "model" to expand into other cities. At the end of 2000, Conseco mobile-home loans totaled $26.3 billion, or about 55% of the firm's $46.6 billion in financial receivables, according to its annual report, filed Monday. In the year 2000 his salary increased to $400,000. However, he speculated that as many as ten of these former Conseco customers could have switched their business to North American. But in what amount? Conseco, Inc. | Encyclopedia.com Conseco Sells Former Green Tree Finance Unit For $1 Billion I understand you cannot get a hold of the previous mortgage company, obviously that cannot be done. Earlier, in mid-1985, Lincoln had agreed to be acquired by I.C.H.
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