Facts

Dr. Narinder Grewal, Pritpal Grewal and Narinder S. Grewal, M.D., a medical corporation, sued Nova Benefit Plans LLC, Nova Sickness, Accident and Disability Indemnity Plan and Trust; National Western Life Insurance Co., Columbus Life Insurance Co., Fidelity Guaranty and Life Insurance Co., Edwards, Wildman & Palmer LLP formerly known as Edwards & Angell LLP, William Howard, Howard & Associates LLC, TFS Advisors Inc., Jason Willet, and Donald Trudeau, in connection with the Nova Sadi Plan.

PLAINTIFFS' CONTENTIONS:
Plaintiffs contended that defendants Willett and Howard were licensed insurance agents for National Western and that Willett, TFS, Howard and Howard & Associates acted as agents of National Western, Columbus, and Fidelity.

Plaintiffs alleged that Howard and Willetts contacted them in late 2004, offering estate and financial planning services. Defendants then convinced plaintiffs to invest $5.8 million in the Nova Sadi Plan, which plaintiffs contended was just a scheme, under the guise of an employer welfare benefit plan, to sell insurance and generate profits for the insurance companies and large commissions for the individual defendants who acted in cahoots with the insurers.

Plaintiffs sued defendants after discovering that they could not access their investments and poor performance, contrary to defendants' representations. Additionally, the IRS assessed back taxes on plaintiffs due to defendants' noncompliance, affirmative misrepresentations and omissions.

Plaintiffs asserted claims for fraud, negligent misrepresentation, professional negligence, and breach of fiduciary duty.

DEFENDANTS' CONTENTIONS:
National Western issued a general denial to plaintiffs' claims, asserted various affirmative defenses, and moved for summary judgment.

Result

Plaintiffs reached a settlement with Columbus, Howard, TFS, and Howard & Associates. Then, the court granted National Western's motion for summary judgment.

Other Information

FILING DATE: Nov. 16, 2012.