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Special Investigator Appointed to Evaluate Policyholder Claims Against Insurer


The Douglas County District Court appointed a former district judge from Lincoln to conduct a statutory investigation of Medico Insurance Company. The appointment came after David Domina’s cross examination of the proposed investigator in open court, and with the consent of his client who initiated a shareholder derivative action against the insurer. The shareholder suit claims certain Medico Insurance Company’s operating officers, and its board, engaged in self-interested transactions, and neglected their duties, by expenditures of company funds, and failure to pursue remedies for a serious pricing mistake. The complaint also challenges the price paid for a portion of the company’s assets in a recent transaction.

“We support the appointment of Judge Samuel Van Pelt as investigator,” Domina told the Douglas County District Court. Domina’s examination of the investigator developed information about the legal tools that should be conferred upon the investigator, and special instructions from the District Court, to make the investigation as meaningful as possible.

Domina’s clients “want the company investigated. We made a derivative demand on the company as required by law hoping an investigation would be triggered. None came. Now the court has ordered that one occur. We are gratified.” Domina said, “The appointment will assure an investigation by a capable lawyer and former judge who has been responsible for many special investigations, and has serious skill. We want to get to the bottom of this company’s operations to understand how it works, and who benefits.” Domina’s client, a New York lawyer whose mother is insured and in long term elderly care, has “real concerns about management, and the strengthened service of the board of directors. We hope our concerns will be dispelled. If they are not, we will do all we can to have them remedied,” Domina concluded.

Domina Law Group pc llo is a firm of trial lawyers. We specialize in complex litigation on a national basis. Our lawyers are ethical, aggressive, and committed to providing spirit and vitality to the judicial system and our client’s legal rights.

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