As published in the April 2005 issue of the M&A newsletter.

SIX MILLION DOLLARS RECOVERED

By Phillip S. Aurbach, Esq.

Phil Aurbach, a shareholder in Marquis & Aurbach, recently won a $6,150,000 victory over Health Plan of Nevada for its breach of contract and bad faith.

On November 10, 2004 the Nevada Supreme Court affirmed a District Judge's Order which approved an Arbitrator's award against Health Plan of Nevada, Inc. (HPN), Nevada 's largest Health Maintenance Organization.

The Arbitrator had found that HPN breached its contract and did not act in good faith when it denied an increase in payments due to Rainbow Medical, LLC. The District Court and the Nevada Supreme Court upheld the Arbitrator's findings.

The Supreme Court ruling came after:

  • 5 years of litigation
  • 25 depositions
  • 22 days of arbitration
  • 5,000 pages of transcripts
  • 24 page arbitration ruling
  • 3 appearances in Nevada District Court
  • 2 appearances in Nevada Supreme Court
 
www.marquisaurbach.com