Leading a group of Objectors, Caddell & Chapman opposed final approval of a nationwide class action settlement in a New Mexico case that challenged First Colony’s charging of modal premiums to its life insurance customers. Objectors moved to intervene in the case and objected to the settlement as being neither fair, adequate, nor reasonable. Objectors also requested limited discovery into the settlement negotiations between First Colony and Class Plaintiffs because Class Counsel conducted no formal discovery before entering into the settlement. After the trial court denied Objectors’ opposition to the proposed settlement and request for discovery of the settlement negotiations, it approved the settlement.
The Objectors, again led by Caddell & Chapman, appealed the denial of these requests and the order granting final approval to the New Mexico Court of Appeals. The Court of Appeals reached a decision reversing and remanding the case. The parties subsequently agreed to settle the case and return to the district court for implementation of the settlement. The settlement is currently being implemented.