The National Prearranged Services civil trial is scheduled to begin this week, and trial briefs have been filed with the Court. The briefs outline the arguments that each party plans to prove during the course of the trial. It is our understanding that the Special Deputy Receiver has settled with all defendant trustees except Allegiant
national prearranged services
Questions for the Jury: the mirror trust account
By Bill Stalter on
A recent order issued by the Federal Court trying the NPS civil suit referenced a mirror trust employed by the defendant bank (12-31-14 Order – Comerica MSJ ). To facilitate the trading of investment securities, a brokerage account is established with a firm that can administer the transactions more efficiently than the fiduciary institution. …
Question for The Jury: Exculpatory Clauses and Preneed Investment Supervision
By Bill Stalter on
It is common for master preneed trusts to have investments directed by an independent fund manager. The pooling of smaller trusts allows funeral directors to achieve the critical mass needed to engage professional asset management. When investment functions are delegated, the trustee typically wants to be relieved of the supervision and liabilities that accompany those…
Getting Personal: liability and the preneed trust officer
By Bill Stalter on
Earlier this week, the Federal Court that is to try the NPS civil lawsuit next month issued an order (Order denying Morisse JOP Mtn) that will raise red flags for the banks that serve as preneed trustees. In denying the motion of an officer of Allegiant Bank, Judge Richard Webber held that the…
Exploiting the Gaps In Chapter 436: NPS’ take on a preneed law
By Bill Stalter on
Posted in NPS/Lincoln, Uncategorized
Over a three day span beginning December 17th, a Federal court in St. Louis will hear legal arguments from the NPS special deputy receiver and from banks that served as NPS trustees at some point during the past 30 some years. Initial legal briefs have been filed, and response briefs will be filed. …
Investment Advisors: How Independent?
By Bill Stalter on
In a motion for rulings of law, the NPS Special Deputy Receiver seeks a judicial determination of two legal issues that could impact preneed trustees subject to the jurisdiction of the Eighth Circuit of Federal Court of Appeals: the beneficiary status of preneed purchasers (and funeral homes) and the required independence of investment advisors. These…
An immaterial witness: Doug Cassity
By Bill Stalter on
Posted in NPS/Lincoln, Uncategorized
Doug doesn’t have much faith in the legion of attorneys retained by the country’s largest banks. Mr. Cassity has filed a writ of habeas corpus ad testificandum that argues only he can effectively cross examine witnesses to NPS’ compliance with the 1994 consent judgment. Mr. Cassity argues that NPS could legally withdraw from trust all…
The NPS Civil Trial: our first glimpse of the legal arguments
By Bill Stalter on
Posted in Uncategorized
In anticipation of a February trial date, a group from the fiduciary bank defendants has filed a motion for summary judgment in the Federal court that will try the NPS civil lawsuit. The intent of the summary judgment request is to narrow the scope of claims made by the Special Deputy Receiver. The pleadings filed…
Plaintiff’s Star Witness: Doug Cassity
By Bill Stalter on
The NPS civil trial is scheduled for trial in February 2015, and the SDR’s strategy took a twist when her litigation team filed a motion to dismiss Doug Cassity as a defendant in the lawsuit. The dismissal probably signals the SDR’s intent to use Mr. Cassity’s testimony. Now convinced that Mr. Cassity does not have…
A Recovery Plan for NPS Victims: A Prison Reality Show
By Bill Stalter on
Posted in NPS/Lincoln, Preneed
Now that Doug and the gang have been processed into the Federal prison system, the Special Deputy Receiver should consider negotiating a deal with the National Geographic Channel about dedicating a season of Lockdown to the NPS preneed gang. Instead of that boring medical facility in Louisville, Doug and Brent have been assigned to two…