Evereth Pitter V. Monarch Alternative Investments

This was a life insurance policy sold in the secondary market by the family to an aggregator. The aggregator then proceeded to sell the policy to Monarch Alternative Investments. Shortly after Monarch’s purchase, the family asserted various claims including fraud and misrepresentation.

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Galactic purchased the $6 million life policy from Monarch (subject to the family’s claims) for $100,000, and after pursuing the litigation aggressively (at the cost of $140,000) for nine months, the court ordered the parties to mediation, and the case was settled for free and clear title to the policy. Galactic subsequently sold the policy for $2.35 million.

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