Gridiron Mgmt. Group v. Travelers Indemnity Co.
286 Neb. 901
| Neb. | 2013Background
- Gridiron Management Group, LLC formed to purchase Omaha Beef assets and operate the football team in 2007.
- Purchase included franchising rights, goodwill, trade name, assets, and operating elements; Gridiron assumed limited liabilities.
- Gridiron sought Nebraska NWCP workers’ compensation insurance; premium calculated using NCCI XMod system.
- NCCI classified Gridiron as combinable with Omaha Beef, LLC, transferring Omaha Beef’s XMods to Gridiron.
- Department of Insurance affirmed the NCCI decision; district court affirmed; Gridiron appealed.
- Key issue: whether a change in ownership under NCCI Rule 3-C-1(a) authorized transferring the XMod from Omaha Beef to Gridiron.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Change in ownership under Rule 3-C-1(a)(4) | Gridiron argues no corporate successor; no change under 3-C-1(a)(4). | Travelers contends Gridiron is a successor in fact; change in ownership applies. | Change in ownership under 3-C-1(a)(4) exists. |
| Change in ownership under Rule 3-C-1(a)(2) | No change in ownership since Gridiron did not take over operations. | There was a change in ownership due to asset sale and Gridiron assuming Omaha Beef’s operations. | Change in ownership under 3-C-1(a)(2) established; XMod transfer supported. |
Key Cases Cited
- Farmland Foods v. State, 273 Neb. 262 (Neb. 2007) (agency grounds may be affirmed on correct facts not explicitly connected to the agency reason)
- Securities Comm’n v. Chenery Corp., 318 U.S. 80 (Sup. Ct. 1943) (cardinal principle of administrative law; grounds must be those used by the agency)
- Pavers, Inc. v. Board of Regents, 276 Neb. 559 (Neb. 2008) (administrative review context cited regarding error correction)
- Hearst-Argyle Prop. v. Entrex Comm. Servs., 279 Neb. 468 (Neb. 2010) (administrative law principles and standard of review)
- Travelers Indemnity Co. v. International Nutrition, 273 Neb. 943 (Neb. 2007) (illustrates interpretation of insurance rating and entity status)
- In re Application of United Tel. Co., 230 Neb. 747 (Neb. 1988) (evidence-based review of administrative agency decisions)