When Lake Texoma Highport asked its insurance broker to obtain coverage for its buildings and property, it had no idea of the troubles that lay ahead. It was not until a devastating flood in 2007 that damaged a majority of the marina that Highport learned that they did not have blanket coverage. When Highport filed a claim with Lloyd’s, it learned that the $15 million policy had sublimits and coinsurance penalties.
The end result was that most of the property damage caused by the flood was not covered under the policy.
Highport turned to Shields Legal Group for help. Suit was filed against Insurance Alliance (the original broker), Bowood (an intermediary broker) and Lloyd’s of London (the insurance carrier). Lloyd’s settled for $6.7M and Highport proceeded to trial against Insurance Alliance and Bowood. The case was tried for 3 weeks in front of a Grayson County jury, who awarded a total of $8.7M in damages. An appeal was filed by Insurance Alliance, who argued that Highport failed to present sufficient evidence to support the jury’s award. .
On November 19, 2014, the Court of Appeals for the Fifth District of Dallas issued its opinion, upholding the entire amount of the verdict. The panel found that Highport presented sufficient evidence to support the jury’s award of $8.3M in property damages and $438,598 in business interruption damages.
“Highport Marina is pleased that, after 7 years it is finally approaching the point where its flood damages will be fully paid,” noted James D. Shields. “We believed all along that the jury reached a just and legal result and are gratified that the Court of appeals agrees with us.”
The case was tried by Mr. Shields and Bart Higgins of Shields Legal Group. Michael Jung of Strasburger & Price represented Highport on appeal.
Side Note: The articles series by Bart Higgins called: Lesson Learned from Insurance Broker Litigation was based on the information, research and lessons from the Highport case. The series was published in May and June of 2014 and contains valuable information and practical tips to avoid the Highport situation for your business.
Please note: This article is for general information purposes only and should not be considered legal advice. You should not act on any information contained in this article without first seeking advice from your legal counsel.
When litigation impacts your company or business, contact Shields Legal Group to learn more about how we may help you navigate those waters. Please visit ShieldsLegalGroup for more information.