According to court documents filed Monday, about 90% of a $185 million legal fee that Quinn Emanuel Urquhart & Sullivan is still fighting over with some of its clients is insured. The firm’s insurance policy covers nearly $167 million of the fee, which was awarded in lawsuits by major health insurers against the U.S. government following a nearly $4 billion win for the health insurers. Some of the companies have appealed the fee.
The firm’s insurance policies shed more light on the stakes in the intense fight over the fee and quantify potential losses for a relatively young judgment preservation insurance market. Experts have warned that big, early losses on these policies could lead to increased prices.
The existence of Quinn’s insurance policy became public during the fee fight, with some clients arguing that the firm should return a significant portion of the money to the companies. Quinn Emanuel has been pursuing the legal fee since 2020, after the Supreme Court ruled that the federal government owed health insurers roughly $12 billion under the ACA’s “risk corridor” provisions.
The Monday court filing revealed that the primary and excess policies amount to $166.85 million in total. Details such as the cost of the policy or the insurer remain confidential.
Despite the insurance policy, Quinn Emanuel is seeking the full $185 million fee, which represents 5% of the total damages its clients received. The case is Health Republic Insurance Co. v. The United States, Ct. Cl., 16 259, 3/18/24.