Plaintiff v. Insurance Companies
Sedgwick knocked off more than $21 million from a punitive damages award for an insurance company client. The plaintiffs/insureds were large developers who converted apartments into condominiums. When the condo purchasers sued the insureds, they tendered to their liability insurer, our client, who delayed providing a defense, seeking to investigate misrepresentations on the application for insurance. The jury awarded $2.8 million in compensatory damages and $25 million in punitive damages to the insured developers. At this point, Sedgwick was called in to represent the insurance carrier, and in post-trial motions was able to persuade the court to decrease the punitive damages award by more than $21 million, to $4.75 million. This paved the way for an extremely favorable settlement, obviating the need for an appeal.