Colonial Life and Accident Insurance Company v. Stentorians-L.A. County Black Fire Fighters et al

Filing 48

ORDER GRANTING PLAINTIFF COLONIAL LIFE AND ACCIDENT INSURANCE COMPANY'S APPLICATION FOR PRELIMINARY INJUNCTION by Judge Christina A. Snyder: Upon Plaintiff's Application 3 , Defendants STENTORIANS - L.A. COUNTY BLACK FIREFIGHTERS ("ST ENTORIANS"), SWETT & CRAWFORD ("SWETT"), ANDHUMANA, INC. ("HUMANA") are hereby ordered and enjoined as follows: Stentorians is enjoined from using the following information regarding individual Policyholders of Colonial Life that Stentorians received through its contractual relationship with Colonial Life: billing control numbers ("BCNs"), Social Security numbers, employee numbers, names (including employees, spouses and dependents), Colonial Life policy number s and types of Colonial Life coverage, premium amounts, effective dates of premiums and coverage, and application signature date (collectively referred to herein as the "Proprietary Information"), and the payroll deduction cards, for any pu rpose other than the performance of the contract between Colonial Life and Stentorians. Stentorians, Swett, and Humana are enjoined from using the dates of birth and addresses of Colonial Life individual Policyholders derived and/or generated from th e Proprietary Information for any purpose other than the performance of the contract between Colonial Life and Stentorians. Stentorians, Swett, and Humana are enjoined from using the Proprietary Information, as well as the dates of birth and addresse s generated therefrom, to solicit Colonial Life individual Policyholders to select insurance with companies other than Colonial Life. Stentorians is ordered to advise Los Angeles County no later than 1/16/2014, that Stentorians is no longer providing a payroll deduction slot for the deduction of policy premiums on behalf of Colonial Life. In light of the speculative nature of any damages resulting from this Injunction, the Court finds that a nominal bond in the amount of $10,000 is appropriate. This Injunction shall be effective immediately. Colonial Life shall have 14 days from the effective date of this Injunction to post the bond set forth herein. See document for further details. (gk)

O

1
2
3
4
5
6
7
8

UNITED STATES DISTRICT COURT

9

CENTRAL DISTRICT OF CALIFORNIA

10
11 COLONIAL LIFE & ACCIDENT
INSURANCE COMPANY, a South
12 Carolina Corporation,
13
14
15
16
17
18
19
20

)
)
)
)
Plaintiff,
)
)
vs.
)
)
STENTORIANS - L.A. COUNTY
)
BLACK FIRE FIGHTERS, a California )
Corporation; HUMANA, INC., a
)
Delaware Corporation; SWETT &
)
CRAWFORD, a California Corporation; )
TRANSAMERICA LIFE INSURANCE )
COMPANY, an Iowa Corporation; and
)
DOES 1-10, inclusive,
)
)
Defendants.
)
)

2:13-cv-9235-CAS(FFMx)
ORDER GRANTING PLAINTIFF
COLONIAL LIFE AND
ACCIDENT INSURANCE
COMPANY’S APPLICATION FOR
PRELIMINARY INJUNCTION

21
22
23

Order and Preliminary Injunction:
In accordance with the Court’s Findings of Fact and Conclusions of Law dated

24 January 10, 2014, Defendants STENTORIANS - L.A. COUNTY BLACK
25 FIREFIGHTERS (“STENTORIANS”), SWETT & CRAWFORD (“SWETT”),
26 ANDHUMANA, INC. (“HUMANA”) are hereby ordered and enjoined as follows:
27
28
1

2:13-cv-9235-CAS(FFMx)
ORDER GRANTING COLONIAL LIFE’S APPLICATION
FOR PRELIMINARY INJUNCTION

1

1.

Stentorians is enjoined from using the following information regarding

2 individual Policyholders of Colonial Life that Stentorians received through its
3 contractual relationship with Colonial Life: billing control numbers (“BCNs”), Social
4 Security numbers, employee numbers, names (including employees, spouses and
5 dependents), Colonial Life policy numbers and types of Colonial Life coverage,
6 premium amounts, effective dates of premiums and coverage, and application
7 signature date (collectively referred to herein as the “Proprietary Information”), and
8 the payroll deduction cards, for any purpose other than the performance of the
9 contract between Colonial Life and Stentorians;
10

2.

To effectuate the provision contained in Item 1 above, the parties are

11 ordered to do the following:
(a)

12

Stentorians is ordered to provide all completed Payroll Deduction

13

Cards, and all copies thereof, pertaining to Colonial Life individual

14

Policyholders to Colonial Life’s counsel no later than January 20, 2014;
(b)

15

Stentorians, Swett, and Humana are ordered to deliver documents,

16

whether maintained in paper form or electronically stored, that contain the

17

Proprietary Information, and all copies thereof that pertain to Colonial Life’s

18

individual Policyholders to Colonial Life’s counsel no later than January 20,

19

2014; and

20

(c)

Stentorians, Swett, and Humana are ordered to deliver the dates

21

of birth and addresses of Colonial Life individual Policyholders used and/or

22

generated as part of Stentorians’ contractual relationship with Colonial Life, to

23

Colonial Life’s counsel no later than January 20, 2014.

24

3.

Stentorians, Swett, and Humana are enjoined from using the dates of

25 birth and addresses of Colonial Life individual Policyholders derived and/or
26 generated from the Proprietary Information for any purpose other than the
27 performance of the contract between Colonial Life and Stentorians;
28
2

2:13-cv-9235-CAS(FFMx)
ORDER GRANTING COLONIAL LIFE’S APPLICATION
FOR PRELIMINARY INJUNCTION

1

4.

Stentorians, Swett, and Humana are enjoined from using the Proprietary

2 Information, as well as the dates of birth and addresses generated therefrom, to solicit
3 Colonial Life individual Policyholders to select insurance with companies other than
4 Colonial Life;
5

5.

Stentorians is ordered to advise Los Angeles County no later than

6 January 16, 2014, that Stentorians is no longer providing a payroll deduction slot for
7 the deduction of policy premiums on behalf of Colonial Life;
8

6.

To the extent that Stentorians is in possession of any Colonial Life

9 policy premiums from the December 31, 2013 and January 15, 2014 payroll
10 deductions, Stentorians is ordered to remit such premiums to Colonial Life on or by
11 February 10, 2014;
12

7.

To the extent that any of the Proprietary Information or dates of birth

13 and addresses of Colonial Life Policyholders is stored in electronic format, such
14 information shall be delivered to Colonial Life in electronic format and thereafter not
15 used for any purpose by Stentorians, Swett, or Humana; and
16

8.

In light of the speculative nature of any damages resulting from this

17 Injunction, the Court finds that a nominal bond in the amount of $10,000 is
18 appropriate. This Injunction shall be effective immediately. Colonial Life shall have
19 fourteen (14) days from the effective date of this Injunction to post the bond set forth
20 herein.
21

Nothing contained in this Order and Injunction is intended to prevent

22 Stentorians (1) from entering into agreements with other insurers regarding the use of
23 Stentorians’ payroll deduction slot for the benefit of such insurers, (2) from
24 performing any vendor agreements, and (3) from marketing to, offering, selling and
25 servicing insurance to (i) all L.A. County employees; (ii) the actual 400 members of
26 the Stentorians - L.A. County Black Firefighters Association; and (iii) other bona
27 fide recognized County employee associations or organizations, so long as the
28
3

2:13-cv-9235-CAS(FFMx)
ORDER GRANTING COLONIAL LIFE’S APPLICATION
FOR PRELIMINARY INJUNCTION

1
2
3
4

solicitation does not utilize or is not otherwise based on the Proprietary Information
that is the subject of this Injunction.

IT IS SO ORDERED

5
6 Dated: January 15, 2014

By:
The Honorable Christina A. Snyder
United States District Judge

7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
4

2:13-cv-9235-CAS(FFMx)
ORDER GRANTING COLONIAL LIFE’S APPLICATION
FOR PRELIMINARY INJUNCTION