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B ,W,,z Case 2:04—cv—00347—FJIVI Document 131-4 Filed 12/22/2005 Page1 013 1· V 4

Northland Insurance, Co. vs. Deposition of Melvin Mahoney
w Correctional Medical Services, Inc., et al. »11/9/2005
~ Page I Page 3
111 Northland Insurance Co., a Minnesota Corporation 111 APPEARANCES OF COUNSEL:
E 121 · 121
‘ 121 1s1 FOR THE PLAINTIFF:
1* 141 PLAINTIFF 141 Mr. Karl M. Tilleman A
Q 1s1 rn Steptoe & Johnson LLP .
» 161 4 1s1 201 East Washington Street, Suite 1600
111 VS. 111 Phoenix, AZ 85004
W 1111 1s1 (602) 257-5244
111 Correctional Medical Services, Inc., et al., _ 191
V 1101 {I0] FOR THE DEFENDANTS:
E 1111 1111 Mr. Dermis E. O'Connell '
. 1121 DEFENDANTS 11111 Bryan Cave LLP
11:1 * 11:11 One Metropolitan Square, Suite 3600
Q 1141 DEPOSITION OF- 1141 St. Louis, MO 63101
. {I5] ` ' 1151 (314) 259—20()0
11111 Melvin Mahoney 116]
Q 1111 November 9, 2005 11-11
[18] [ISI 5 ni
1191 4· 1 191 I
l 12111 {201 I
1211 1211
_ tm 1221 1
1221 1231 `
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1251 I?-51
! Page 2 Page 4
111 IN THE UNITED STATES DISTRICT COURT 111 INDEX
121 DISTRICT OF ARIZONA 121 PAGE
{ ,,,_ 111 1x1 Examination by Mr. Tilleman 5
141 Northland Insurance Co., a Minnesota Corporation, 141
1s1 ISI RECORD MADE BY MR. TILLEMAN
U 1¤1 Plaintiff, 1s1 ‘
Wl 1v1 EXHIBITS
1111 vs. No. CV04·347-PHX-FIM 1111 (Exhibit I0 confidential document)
! 191 191
11111 Correctional Medical Services, Inc., etal., 11111 Deposition Exhibit 10 5
“ 1111 1111 Deposition Exhibit 11 5.
1121 I Defendants. 1121 V .
I ll3l 1121
1141 Deposition of MELVIN MAHONEY, taken on behalf of [I4] '
1151 the Plaintiff, at the offices of Bryan Cave LLP, One |151
[16] Metropolitan Square, Suite 3600, in the City of St. 1161
1111 Louis, State of Missouri, on the 9th day of November, — 11-11 1
D 1111 2005, before Elizabeth Goodwin Sousa, RPR, CCR MO #831, 11111
1 11¤1 CSR IL #084-004310, and Notary Public. 1191
” 1201 1201 ,
U 1211 · 1211
1221 1221
i A `*’‘· 1231 1121 ` n
I Wl I 12**1
1251 125] .
5 ,,,,,,,,,, Case 2 :04-cv—O§§’Z£f-FP2§7l'?" %eE@’efi7;g·3Ii‘¥gt SF’@_%6"g?;2g"¥@O5 Page 3 of Gi ·
1 1 ) 2 -67 ·4 21 -25 ~ age - Page 4
1

Deposition of Melvin Mahoney Northland Insurance, Co. vs.
I 11/9/2005 . Correctional Medica] Services, Inc., et al.
Page 5 Page 7
in Melvin Mahoney, (1; A: I have been the vice president and treasurer
I l2l of lawful age, having been first duly sworn to 12] the entire period.
H testify the truth, the whole truth, and in Q: Can you explain for me, please, the duties that
., nothing but the truth in the case aforesaid, 14; you have as vice president and treasurer?
I {5; deposes and says in reply to oral in A: My duties include finance and banking, cash
in interrogatories, propounded as follows, to-wit: rn management, retirement fund investment and since August
m (Deposition Exhibit Number l0, 11 m of 1999 I have been responsible for the placement of
I in marked for identification.) ls; insurance.
. pq EXAMINATION in Q: Can you explain No. 4 for me, the placement of
my QUESTIONS BY MR. TILLEMAN: not insurance, what your duties are specifically there?
on Q: Mr. Mahoney, before we proceed, I'd like to 1111 A: My duties are to try to negotiate the best
I uz; just confirm what your counsel has given me today. my policies and pricing for our insurance renewals,
ns; MR. 'I`ILLEMANr Dennis, the document that you un approximately 10 to 12 policies.
nt; provided was a combined financial statement for CMS, my Q: In terms of the best policies, what do you look
! ns; years ending September 30, 2001 `zmd 2000, that's in nn at when you try to find the best policies?
ns; response to the discovery? nt; A: We look at quality of the insurers involved.
im MR. O'CONNELL: That's the document responsive my The breadth of coverage and the pricing.
{ ns; to your document request for the financial statement nn Q: Very good. There's a few exhibits we've got
(19} preceding the - or for the fiscal year preceding not here, Mr. Mahoney, I'd like you to take a look at p
not liquidation. my Exhibit 11, for a moment.
I nn MR. TILLEMAN: Okay. Thank you very much. nu MR. TILLEMAN: Dennis, I apologize, that was
my Then we'll review this a little bit further. The other nz; faxed to me. I don't have another copy. When you’re
{ my thing that I thought, Dennis, made sense is in tems of my done, I'm going to have to ask for it back. Happy to
! nt; discovery we've sent out, we've sent out quite a bit in on share as we go through the questions.
. Aran this case, there's been some overlapping discovery in ns; Q: (By Mr. Tilleman) It‘s an article about one of
li » » Page 6 Page 8
nj the CMS/NAS case. What I'd like to do is just to 11; the insurers for CMS, the PHICO Insurance Company.
L in stipulate to you that the documents that we've received 11; MR. O'CONNELL: Apparently, this is a
_ in zmd have been produced in the NAS case are applicable nj 2005 publication.
r 141 to this case as well. If we have our associates get 141 MR. TILLEMAN: I believe so. No, I think it
' 151 together, we should get an index of everything, if that isi was printed 2005.
l 16; makes sense. rs; Q: (By Mr. Tilleman) Okay. Thank you. Do you
m MR. O'CONNELL: I have no problem with that for in mind ifi —- if you have any questions, we'll just have
“ in purposes of discovery. ni to share that.
l in MR. TILLEMAN: I think we've pretty much done in A: Okay.
not that. Okay. Thank you very much. not Q: Being the individual at CMS responsible for
L nn Q: (By Mr. Tilleman) Mr. Mahoney, what's your full nn insurance, did any ofthe issues about which this
U nn name for the record? 1121 particular article concerning PHICO, did they come to
ns; A: Melvin Merrill Mahoney. my your attention in the years 2000, 2001?
· 1141 Q: How old are you, sir? 1141 A: In 2000 I was aware that PHICO, I believe, in
I ns; A: I'm 57. ns; May was downgraded by AM Best from A—minus to
na Q: Have you ever been deposed before? 116; B—plus-plus.
rm A: No, I have not. [171 Q: What reasons do you recall having been given
I us] . Q: Have you ever testified in any court-related ns; from AM Best to downgrade them?
usa proceeding like as in a trial or anything else? ns; A: I don't recall.
1201 A: No, I have not. not MR. O'CONNELL: Object to the form of the
l nn Q: How long have you been with Correctional my question. It assumes facts that there’s no foundation
Medical Services? 1221 for, subject to that you can answer. p
* -....» A: Approximately nine years. 12:1 MR. TILLEMAN: I'm sorry, you said assumes
I my Q: What position or positions have you held at my facts that they were downgraded?
_ 1251 CMS? l 12:1 MR. O'CONNELL: Assumes that that's what they
I case 2:04-ev-@zr&7Pa1w G1at€1gi*¤r1e$¤1L1ia4-4 Swlletwitz/2@Q005 Page s or s .
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Case 2:04-cv-00347-FJM

Document 131-4

Filed 12/22/2005

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Case 2:04-cv-00347-FJM

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Case 2:04-cv-00347-FJM

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