UC regents, Aon Hewitt reach settlement in years-long dispute

Michael Drummond/File

Related Posts

On Sept. 8, the UC Board of Regents concluded its jury trial with Aon Hewitt, which provided management consulting services to the University of California during the development of the UC Student Health Insurance Plan.

The university first filed a lawsuit against the firm Oct. 1, 2013, seeking to reclaim $57 million in deficit within the span of two years, citing “grossly negligent or reckless” consulting services.

Pretrial preparations took place throughout August at the Rene C. Davidson Alameda County Courthouse, and a civil jury trial was underway by Aug. 31.

The court, counsel and jury were all present in open court Sept. 8 when the jury trial officially came to an end, according to the official case record. The Board of Regents informed the court that it had reached an agreement with Aon Hewitt, and a compliance hearing has since been scheduled for Nov. 10.

As part of its agreement with Aon Hewitt, the UC Office of the President declined to comment on the final stages of the trial, but confirmed in an email that a settlement had been reached.

“We’ve reached a settlement with the University of California and we look forward to the opportunity of working with them in the future,” said Aon Hewitt media spokesperson MacKenzie Lucas.

Lucas was unable to elaborate on the specifics of the settlement that was reached. According to a court statement of decision issued Aug. 26, both parties had initially agreed to limit the extent of damages sought in the case. Because the two parties ultimately settled, however, it is unknown whether they adhered to similar terms in their settlement, according to Adam Byer, administrator of planning, research and outreach for the Alameda County Superior Court.

“From a court’s perspective, one party sued another party, but they came to a private understanding, so the court no longer needs to be as involved,” Byer said.

Contact Harini Shymasundar at [email protected] and follow her on Twitter at @hshyamsundar.