In a startling twist of events, Connecticut‘s highest court has dealt a decisive blow to Frontier Communications’ appeal of a trial court’s ruling concerning a $21.8 million prejudgment remedy request. The legal battle revolves around former CEO Leonard Tow’s claim regarding company tax payments on life insurance policies, and it has captured the attention of legal enthusiasts.
Frontier Communication Appeal of Trial : Chief Justice’s Terse Denial
The Connecticut Supreme Court made its final ruling public on Monday, concluding the appeal that had kept the legal world on edge. Chief Justice Richard A. Robinson’s refusal to accept Frontier’s application for a certified appeal came as a shock to many. Under Connecticut law, such appeals are typically granted when substantial public interest is at stake. However, in this case, the court ruled that the issue at hand did not meet this criteria.
A Legal Maneuver Unfolds
Frontier had raised a substantial challenge to Tow’s Connecticut-based request to attach $21.8 million in company funds to secure a hypothetical future arbitration win in New York. Tow, who had initiated arbitration against Frontier in New York on June 20, 2023, was seeking to ensure the company continued paying taxes on multi-million dollar life insurance policies.
A Unique Prejudgment Remedy Request
Connecticut’s prejudgment remedies, known as PJRs, are extraordinary attachment requests that require only an assertion that the party is likely to win the case. A hearing follows to determine if probable cause is established, allowing parties to secure assets or funds to guarantee their adversary’s ability to pay a potential judgment.
