Settlement Breach Suit Over $50M Aflac Demand Can Proceed
By Emma Cueto
A Georgia federal court has decided to allow a suit alleging that a woman breached a 25-year-old settlement agreement by sharing details about her original claims with an attorney handling a different suit against Aflac Inc., who then threatened further legal action against the insurance company unless it paid $50 million.
The court found Tuesday that W1l1iam Amos, who was a party to the original settlement, could continue with his claims against Leigh Ann Youngblood-West, alleging that she breached the confidentiality clauses of two settlement agreements by sharing information about the original case with Dimitry Joffe, who then sought a new settlement for Youngblood-West in exchange for not filing another suit. Youngblood-West has claimed she signed the agreements under duress.
Joffe is currently handling a dispute against Aflac and several of its executives, including the sons of Aflac's co-founder Paul Amos, Daniel Amos and Paul Amos II, but which does not include either William Amos or Youngblood-West.
"Based on the allegations in plaintiff's complaint, the settlement agreements are valid contracts, and they contain enforceable confidentiality provisions," U.S. District Judge Clay D. Land said in allowing the suit to move forward. "Accordingly, plaintiff's complaint states a plausible claim for breach of contract under Georgia law."
According to the decision Youngblood-West reached two settlements involving Amos, one in 1992 and the other in 1993, which both included money payments to Youngblood-West and confidentiality requirements. At the request of Amos, the complaint in the instant suit is under seal, and details about the 1990s dispute were not available Wednesday.
In March, Youngblood-West, dissatisfied with the settlement deals, contacted Joffe through her attorneys, according to the decision.
Joffe is currently representing investors in a suit against Aflac in Georgia federal court that accuses the company of manipulating its growth-related metrics to mislead shareholders, among other alleged misdeeds.
After learning of Youngblood-West's allegations, Joffe threatened to file a suit on her behalf unless Aflac agreed to pay $50 million according to the decision. Joffe continued to threaten suit even after Aflac shared copies of the settlement agreements, including the confidentiality requirements, the decision said.
Just before Joffe's deadline for filing, Amos filed the instant suit under seal and requested that any suit filed by Youngblood-West against Amos also be filed under seal, according to the decision. The court agreed and Youngblood-West's suit, which was filed in May, is also sealed.
Judge Land said in Wednesday's decision that he plans to ask the parties to justify keeping the suit under seal, but ruled that the suit should be allowed to continue. Despite Youngblood-West's claims that the confidentiality requirements violated Georgia law, public policy and the First Amendment, Judge Land ruled that it was well established that all three allowed the requirements laid out in Youngblood-West's agreement.
The judge also determined that it was too early to consider Youngblood-West's claim that the agreements were the result of fraud and duress.
Counsel for Youngblood-West declined to comment. Counsel for Amos did not respond Wednesday to a request for comment.
Amos is represented by James F. Bogan and C. Allen Garrett.
Youngblood-West is represented by Dimitry Joffe.
The case is William L. Amos v. Leigh Ann Youngblood-West, case number 4:18-cv-00068, in the U.S. District Court for the Middle District of Georgia.
--Editing by Katherine Rautenberg.