Facts

NKD Diversified Enterprises Inc. sued AMCO Insurance Co. involving an insurance dispute.

PLAINTIFF'S CONTENTIONS:
Plaintiff owned a building in Tuolumne County that housed a restaurant. The property was damaged following large snowstorms in 2011. The roof caved in causing major structural damage. Defendant allegedly underestimated the repair costs, causing delayed repairs and consequential damages in the form of lost rent. As such, plaintiff sued defendant for breach and bad faith.

DEFENDANT'S CONTENTIONS:
Defendant claimed its estimates were adequate. Defendant also accused plaintiff of filing a claim for money that had already been paid by another insurer and for committing fraud.

Settlement Discussions

NKD demanded $3.49 million in settlement.

Damages

NKD sought damages for benefits of repair, loss of rents, and attorney fees.

Result

The jury rendered a verdict in favor of NKD and against AMCO. It awarded NKD $10.5 million in total damages, which included $988,814 for repair costs (policy benefit), $78,000 in lost rent (policy benefit), $317,200 in lost rents, $688,809, and $8.5 million in punitive damages.

Other Information

According to defense, post-trial motions for JNOV and New Trial were filed. Thereafter, the parties entered into a confidential mediation and the case settled on a confidential basis, and the post-trial motions have been withdrawn. The parties have filed a Notice of Settlement with the court and will be submitting a stipulation to vacate the judgment. FILING DATE: Nov. 2, 2012.

Length

six weeks