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Insurance
Breach of Contract
Negligent Misrepresentation

Metawave v. St. Paul Fire & Marine Insurance Co., Woodruff Sawyer & Co.

Published: Jul. 16, 2005 | Result Date: Apr. 29, 2005 | Filing Date: Jan. 1, 1900 |

Case number: 415560 Verdict –  $0

Judge

Paul H. Alvarado

Court

San Francisco Superior


Attorneys

Plaintiff

Philip L. Pillsbury Jr.
(Pillsbury & Coleman LLP)

Vedica S. Puri


Defendant

Linda E. Klamm

Lawrence M. Cirelli
(Hanson Bridgett LLP)

Kevin Christensen

Lorianne G. Conklin

Ronald J. Clark


Experts

Plaintiff

Eric Sullivan
(technical)

John Dempsey
(technical)

Defendant

Mark R. Newton
(technical)

Donald Conway
(technical)

Andrew Dymond
(technical)

Facts

The subject suit related to the plaintiff company's destruction by fire of its Taiwan manufacturing facility in May 2001. The plaintiff, a telecommunications company was in bankruptcy. The plaintiff sued its insurer, St. Paul Fire Insurance Company and its broker, Woodruff-Sawyer & Co. and at trial sought $18 million in policy benefits, prejudgment interest and as to St. Paul, it sought damages for its bad faith conduct in refusing to pay the claim. The trial was phased. It began on Nov. 8, 2004 and concluded on April 29, 2005. Initially, the plaintiff tried the policy interpretation issue as to applicability of the domestic policy and its limits to the Taiwan loss. The court ruled in favor of St. Paul. Next, the plaintiff tried its reformation claim and the court once again ruled in favor of St. Paul.

Settlement Discussions

St. Paul Fire Insurance made a C.C.P. Section 998 offer of $3.1 million. Woodruff Sawyer made a C.C.P. Section 998 offer of $50,000.

Result

The jury found in favor of both defendants. The jury found that while St. Paul did not pay full benefits due under the policy that the plaintiff had breached the policy's cooperation clause and was therefore not entitled to further payment. The jury also found that Woodruff-Sawyer was not professionally negligent in failing to obtain a global policy with global interruption limits because it had never agreed to obtain such coverage and that it did not misrepresent that the domestic policy's limits would apply to a foreign loss.

Other Information

The plaintiff's claim for punitive damages was stricken prior to trial due to lack of evidence upon a motion for summary adjudication by St. Paul.

Deliberation

eight hours

Length

70 hours


#93597

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