Other Complex Litigation & Commercial Disputes

Selected Case Experience

Executive Life Insurance Company

Complex Business Litigation

CFP’s Dr. Fenn testified on behalf of Credit Lyonnais and the French government in an extraordinarily complex $6 billion lawsuit brought by the losing bidders for U.S. life insurance company Executive Life, which had failed under the weight of its junk bond holdings. Dr. Fenn’s testimony, which drew on his experience as the life insurance industry expert at the Federal Reserve Board, went to the issue of loss causation: Specifically, whether any of the losing bids satisfied then-California Insurance Commissioner John Garamendi’s requirements for protecting policyholders against further losses. On the eve of trial, the parties settled for approximately $600 million.

ICC Dispute

Damages Related to Capital Structure

In an arbitrated dispute before the International Chamber of Commerce, Claimants alleged that an undisclosed tax liability in connection with an acquisition adversely affected their ablity to issue debt, and sought damages related to the use of a “sub-optimal” capital structure.  Working on behalf of the Respondents, and for the law firm of White and Case, CFP’s Dr. Fenn  analyzed the acquired firm’s debt capacity and the value of issuing additional debt.  Dr. Fenn concluded that damages were, at most, equal to 10% the level claimed by Claimant’s expert.  Following the submission of several rounds of expert reports, Claimants withdrew their expert.

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