California-based Wing Group (which manufactures life jackets, boats, and other safety equipment) says it has secured what it’s deeming a landmark win in an insurance bad faith lawsuit against Lloyd’s of London Syndicates.
“Lloyd’s misconduct, obfuscation, bullying, ignoring, belittling, and overall approach toward Wing, when we were in a time of need, is so disappointing and unfortunate,” says Andrew Branagh, CEO of the Wing Group. “Every negative stereotype associated with the insurance industry was on grand display. In our view, this could be a case study in what not to do as an insurance company. I wish that this outcome would serve to change their behaviour. Unfortunately, it appears it will not.”
The case concerns the handling of a claim made by Wing under a representations and warranties insurance policy. Wing purchased that in connection with a business acquisition made in 2019. After the acquisition closed, Wing found errors in the financial statements and made a claim on the insurance policy in May 2020. Which was denied.
“Unlike many small businesses in its position, Wing had the fortitude to push back on Lloyd’s bad faith tactics and fight hard to obtain the insurance policy benefits to which it was obviously entitled from the outset,” says Mark Goodman, Wing’s lead counsel.
“It is unfortunate that Wing was required to expend so many resources to get what it deserved but we are obviously pleased that the jury saw Lloyd’s conduct for what it was and we look forward to Lloyd’s finally paying what it owes, both by satisfying the jury’s award and reimbursing Wing for the attorneys’ fees that it was forced to incur as a result of Lloyd’s bad faith conduct.”
Wing Group describes itself as a leader in inflatable boats, life rafts, flotation, dry suits, and other tactical and survival solutions via its companies Wing Inflatables, Henshaw Inflatables, Patten Company, FabTek Industries, and Mustang Survival. It recently appointed Patrick Blake as chief operating officer (COO) to oversee operational strategy across the group’s portfolio of brands.
The three-week trial in San Francisco Superior Court, saw a jury reaching a verdict in favour of Wing on all of its claims, awarding compensatory damages and separately awarding $15,000,000 in punitive damages. The court subsequently entered judgment against the Lloyd’s syndicates in the amount of $19,266,297, including pre-judgment interest. Wing then filed a motion to recover its attorneys’ fees and costs incurred in the litigation as a result of having to sue the Lloyd’s syndicates to recover the amounts due under the insurance policy.
“We entered into an insurance relationship in good faith with Lloyd’s in 2019, expecting a business partnership that would protect us against unwanted surprises that might arise. Those expectations were never met,” continues Branagh.
Lloyd’s subsequently paid the pre-judgment interest and compensatory damages. It appealed the $15,000,000 punitive damages award.
For its part, the Wing Group appealed a post-trial decision by the San Francisco court denying an award of attorneys’ fees to Wing. On appeal, Lloyd’s moved to dismiss the Wing Group’s appeal as untimely, but the California Court of Appeal denied that motion in a decision that has been certified for publication to provide guidance to other litigants in California with respect to when the time to file an appeal begins to run. Accordingly, both appeals remain pending.
The post Marine group wins against Lloyd’s of London Syndicate appeared first on Marine Industry News.
Leave a Reply