With Varnum’s representation, two Varnum clients recently had huge victories completely affirmed by the Sixth Circuit. The victories highlight Varnum’s experienced and well-rounded litigation practice; one was a complete win for a defendant, and the other for a plaintiff.
First, in Bellwether Community Credit Union v. CUSO Development Company LLC, Varnum represented CUSO Development Company, LLC, a company that provides administrative and related services to financial institutions around the country. The Sixth Circuit affirmed CUSO’s outright victory. As a result, the plaintiff, who sought over $655,000.00, received nothing. The case is the first to interpret a particular provision of the Michigan Limited Liability Company Act and will likely have practical implications for innumerable limited liability companies.
Second, in Hi-Lex Controls Inc. v. Blue Cross & Blue Shield of Michigan, Varnum represented Hi-Lex Controls, a manufacturer of auto parts. The Sixth Circuit completely affirmed Hi-Lex’s trial verdict of just over $6 million plus attorney’s fees. The Sixth Circuit agreed with the trial court that Blue Cross & Blue Shield of Michigan engaged in fraud and concealment that violated ERISA when Blue Cross administered self-insured insurance plans.
While the $6,000,000 ranked as one of the top 10 largest verdicts in Michigan last year, the ramifications of the case are much greater; Varnum represents over 35 other companies besides Hi-Lex, each of which appears to have been duped by Blue Cross & Blue Shield of Michigan in the very same way. Perhaps due to this and the fact that Blue Cross is such a well-recognized company, the opinion is expected to garner significant media attention.