{"id":117,"date":"2013-04-01T18:42:22","date_gmt":"2013-04-01T18:42:22","guid":{"rendered":"http:\/\/www.joneslemongraham.com\/blog\/?p=117"},"modified":"2021-12-21T20:05:59","modified_gmt":"2021-12-21T20:05:59","slug":"class-action-anti-trust-damages-not-considered-disgorgement-damages","status":"publish","type":"post","link":"https:\/\/www.joneslemongraham.com\/blog\/class-action-anti-trust-damages-not-considered-disgorgement-damages\/","title":{"rendered":"Class action anti-trust damages not considered disgorgement damages"},"content":{"rendered":"<p>by <a href=\"http:\/\/www.joneslemongraham.com\/attorneys.html?Attorney=Graham\">Chris Graham<\/a> and <a href=\"http:\/\/www.joneslemongraham.com\/attorneys.html?Attorney=Kelly\">Joseph Kelly<\/a><\/p>\n<p><a href=\"http:\/\/scholar.google.com\/scholar&#95;case?case=14766693647987845485&amp;hl=en&amp;lr=lang&#95;en&amp;as&#95;sdt=2,14&amp;as&#95;vis=1&amp;oi=scholaralrt\">William Beaumont Hospital v. Federal Ins. Co.,  Case No. 11-15528 (E.D. MI March 13, 2013)<\/a><\/p>\n<p>Hospital obtained declaration that D&amp;O insurer is obligated to defend and indemnify hospital in class action Sherman Act anti-trust suit filed by nurses.  The primary issue was whether the damages sought were \u201cLoss\u201d under the policy.  The policy\u2019s definition of \u201cLoss\u201d via endorsement provided coverage for \u201cClaims for Antitrust Activities\u201d; the definition of \u201cAntitrust Activities\u201d specifically included actual or alleged violations of the Sherman Act; and for claims \u201cbased upon, arising from or in consequence of profit, remuneration or advantage to which an Insured was not legally entitled, the term \u2018loss\u2019\u2026 shall not include disgorgement by any Insured or any amount reimbursed by any Insured Person.\u201d  D&amp;O insurer argued plaintiff nurses sought disgorgement so there was no \u201cLoss.\u201d  But the court found plaintiff nurses\u2019 Sherman Act claims weren\u2019t \u201cbased upon, arising from or in consequence of profit, remuneration or advantage to which an Insured was not legally entitled.\u201d  Rather the claims were based on an alleged conspiracy by various hospitals to hold down nurses wages in violation of the Sherman Act.  Hospital cited <em>Level 3 Communications v. Fed. Ins. Co.<\/em>, 272 F. 3d 908 (7<sup>th<\/sup> Cir. 2001) for the proposition that &#8220;coverage for restitution or disgorgement is uninsurable as a matter of public policy.&#8221; The court rejected this argument in three ways \u2013 namely, (1) there\u2019s no need to identify a public policy basis to exclude disgorgement from \u201cLoss\u201d when the policy here already incorporates that principle; (2) <em>Level 3<\/em> didn\u2019t cite to Michigan caselaw; and (3) the damages sought weren\u2019t really restitution or disgorgement when the nurses were seeking ordinary compensatory damages under the Sherman Act.<br \/>\n_vis=1&amp;oi=scholaralrt<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>by Chris Graham and Joseph Kelly William Beaumont Hospital v. Federal Ins. Co., Case No. 11-15528 (E.D. MI March 13, 2013) Hospital obtained declaration that D&amp;O insurer is obligated to defend and indemnify hospital in class action Sherman Act anti-trust suit filed by nurses. The primary issue was whether the damages sought were \u201cLoss\u201d under [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/posts\/117"}],"collection":[{"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/comments?post=117"}],"version-history":[{"count":4,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/posts\/117\/revisions"}],"predecessor-version":[{"id":3230,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/posts\/117\/revisions\/3230"}],"wp:attachment":[{"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/media?parent=117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/categories?post=117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.joneslemongraham.com\/blog\/wp-json\/wp\/v2\/tags?post=117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}