Doug is a member of the Financial Services industry team and the leader of the firm's insurance sector. For more than 20 years, he has handled cases involving almost every aspect of litigation for insurance companies and the professionals who serve them. He has also prosecuted and defended a number of cases relating to insurance coverage and bad faith issues and often consults with clients with regard to their insurance coverage issues.
A certified insurance receiver, Doug has broad experience as general and special counsel to the receiver of insolvent insurance companies and other financially troubled companies. He has handled all aspects of receivership, including initial appointment of the receiver, claims resolution, reinsurance collection, transfers of blocks of business and marshalling and distribution of assets. Doug has also investigated numerous claims and coverage disputes involving insurers, reinsurers, accountants, lawyers, actuaries and claimants. He has resolved outstanding issues through litigation to final adjudication or negotiated settlement, commutation or recapture agreements.
Doug has prosecuted and defended claims involving failed transactions, breach of contract and breaches of duty by directors and officers, reinsurers, brokers, accountants, lawyers and other professionals. Clients often call upon him during a crisis to help prevent disastrous economic consequences. Doug has prosecuted federal income tax refund claims for insolvent life insurance companies in federal district courts and circuit courts of appeal.
Select highlights of his experience include:
•Recovering in excess of $250 million on behalf of insolvent insurance companies from reinsurers, lawyers, accountants, directors and officers, other professionals and financial institutions.
•Freezing more than $40 million in foreign accounts and repatriating these funds back to the United States on behalf of insolvent insurance companies.
•Prosecuting numerous phase-three tax refund claims against the Internal Revenue Service (IRS) on behalf of receivers of insolvent insurance companies.
Doug is a member of the Executive and Partner Boards.
Awards and Recognitions
•Benchmark Litigation, Local Litigation Star, 2010
•Martindale-Hubbell AV Preeminent
•Missouri & Kansas Super Lawyers, Business Litigation, 2012-2014
•Prosecuted numerous phase-three tax refund claims against the IRS on behalf of receivers of insolvent insurance companies.
•Recovered in excess of $250 million on behalf of insolvent insurance companies from reinsurers, lawyers, accountants, directors and officers, other professionals and financial institutions that caused damage to the companies.
•Froze in excess of $40 million in foreign accounts and repatriated these funds back to the United States on behalf of insolvent insurance companies.
•Served as counsel to the rehabilitator of a mutual company that was saved from liquidation by a unique arrangement in which the guarantee association agreed to indemnify a party that contributed $17 million in capital to the company via a surplus note. After the rehabilitation plan was approved, agents sought an injunction against the company that would have derailed the rehabilitation and put the company into liquidation. All issues resolved, and the company came out of rehabilitation.
•Served as counsel to the supervisor with regard to the sale of a large life and annuity company that was financially troubled. Negotiated the sale of the company by persuading the guarantee association to put up funds sufficient to create an auction for the company. With the possibility of competitive bidders, the purchaser agreed to acquire the company without a guarantee or indemnity agreement from the guarantee association.
•Obtained a professional malpractice policy limits settlement against an accounting firm for its malpractice with regard to its audit of a publicly traded insurance franchisor and affiliated companies - without filing a lawsuit.
•Obtained settlement from directors and officers of insurance carriers and from directors and officers of an insurance franchisor in excess of the carriers' policy limits. Also reached an agreement with the directors and officers to prosecute claims against the broker for a gap in coverage.
•Developed and completed a unique closing process for the estate of an insolvent insurance company in which the company had been in liquidation for 10 years but could not close because of potential IRS and federal government claims. Closed the estate and paid all policyholders and the guarantee association in full. Also paid $20 million to unsecured creditors while retaining a reserve for potential IRS and federal government claims.
In The News
10.24.14 Missouri & Kansas Super Lawyers and Rising Stars 2014 Names 83 Husch Blackwell Attorneys; Six Receive Top Honors
4.11.14 Kansas City Business Journal: Husch Blackwell Partner Doug Schmidt Shares His War Story on Fraud, Greed and the Vatican
Financial Services News Coverage
10.16.13 In Missouri, 76 Husch Blackwell Attorneys Named 2013 Super Lawyers & Rising Stars
10.15.12 A Combined 84 Husch Blackwell Attorneys are Named 2012 Super Lawyers and Rising Stars in Missouri and Nebraska
4.02.12 Husch Blackwell Completes Leadership Transition
8.12.11 Husch Blackwell Announces Firm Leadership Transition
10.01.09 Benchmark Litigation Recognizes Husch Blackwell Sanders as a Highly Recommended Firm