Executive Life of New York (New York)
Appellate Division Affirms ELNY Plan; Class Action Lawsuit Voluntarily Dismissed
On February 6, 2013, the New York Appellate Division issued its order on the ELNY appeal, affirming the order of liquidation and order approving the Agreement of Restructuring on all counts. The Appellate Division rejected the objecting payees’ contention that they were denied due process, both with respect to notice and the conduct of the hearing. The Appellate Division further found no merit in the objecting payees’ contention that the Supreme Court lacked subject matter jurisdiction to include judicial immunity and preliminary injunctive relief.
In addition, on February 6, 2013, Attorney Edward Stone filed a Notice of Voluntary Dismissal in the class action case filed against the New York Superintendent and others alleging breach of fiduciary duty and omission. The case was filed on November 8, 2012, in a New York federal court on behalf of three ELNY payees. Voluntary dismissal of the class action matter comes on the heels of Judge Galasso’s January 25 civil contempt order fining the plaintiffs’ attorneys for failure to comply with the three previous anti-suit injunctions issued by the Receivership Court. Under the federal rules, the case was withdrawn without prejudice to re-filing the claim in the future.
Task Force Chair – Jack Falkenbach; Staff Contact -