Facts

A fire destroyed the Planters Hotel in March 2007. The hotel was under a $3.1 million insurance policy with Chubb Custom Insurance Co. when the fire took place, which was obtained by P. Allen Earley, trustee of the Allen Earley 1998 Family Trust. Earley had obtained the policy through Henry Kuiper, an insurance agent from Smith-Kandal Insurance Agency.

PLAINTIFF'S CONTENTIONS:
Earley alleged breach of contract and bad faith denial of the claim by Chubb. Earley contended that he promptly submitted a claim for the hotel, which was denied by Chubb based on exclusionary policy language termed "protective safeguards." Earley claimed that without coverage under the policy, he was left without any insurance at all for the total loss of the hotel. Earley reached a pre-trial settlement with Chubb and proceeded to trial with Smith-Kandal as the only defendant.

Earley alleged that Smith-Kandal mishandled the insurance coverage, making multiple serious mistakes. Earley further contended that before the fire, a Chubb representative inspected the hotel, submitting its findings and recommendations to Smith-Kandal, but not to Earley. Earley alleged that the notification stated that the hotel was underinsured and included an estimate showing that reconstruction costs would be over $6.2 million, and Chubb offered to increase the policy limits to reflect the true value of the property after this finding.

Earley claimed that Smith-Kandal breached its duties, failing to notify him that the hotel was underinsured or of Chubb's offer. Earley contended that Smith-Kandal actually advised Chubb not to increase the limits, instead agreeing to a change in the policy to provide lesser coverage.

DEFENDANT'S CONTENTIONS:
Smith-Kandal denied the allegations, claiming no wrongdoing. Smith-Kandal contended that Earley received the appropriate coverage and policy given the hotel's specifications. It further alleged that Chubb's decision to deny the claim was outside of its control.

Damages

Earley sought $6.2 million in damages for the amount he could have obtained under the most beneficial insurance policy offered to him by Chubb. He also sought attorney fees and costs, as well as past and future pain and suffering damages for emotional distress.

Result

The jury found Smith-Kandal liable, awarding Earley $7,553,559 in damages.

Deliberation

one week

Length

seven weeks