The Lanier Law Firm Wins $1.45 Million Insurance Verdict for Waco Policyholder
WACO, Texas, Nov. 22, 2011 /PRNewswire/ — Attorneys from The Lanier Law Firm helped an industrial manufacturer win a $1.45 million verdict against Waco, Texas-based Bailey Insurance & Risk Management after jurors found that the insurance broker violated the Texas Deceptive Trade Practices Act and Texas Insurance Code by misrepresenting the validity of an insurance policy.
Jurors in Judge Gary Coley’s 74th District Court in McClennan County issued the verdict on Nov. 14, 2011, following five days of trial. The award in favor of Waco-based Hobbs Bonded Fibers could exceed $1.6 million based on the addition of prejudgment interest and court costs.
Hobbs manufactures a variety of specialty nonwoven products used in a variety of industries. Hobbs purchased an insurance policy brokered by Bailey Insurance in August 2008 to protect a number of its properties, including warehouses in Mexia, Texas. The Mexia property was burglarized in November 2008, with thieves stealing copper electrical components worth more than $850,000.
Hobbs filed a policy claim that was denied after the company’s insurer argued that the warehouse was not covered because it was unoccupied at the time of the theft. To support its argument, the insurer produced a policy application prepared by Bailey Insurance that contained numerous mistakes and misrepresentations, which caused the policy to be invalid.
Attorneys from The Lanier Law Firm presented trial evidence that the policy application was never approved by Hobbs, and instead was signed by officials from Bailey Insurance without Hobbs’ knowledge.
Based on the evidence, the jury found that Bailey Insurance knowingly violated the Deceptive Trade Practices Act and the Texas Insurance Code, ordering the company to pay Hobbs more than $888,000 in actual damages, $250,000 in statutory damages, and more than $300,000 in attorneys’ fees.
With offices in Houston, Los Angeles, New York, and Palo Alto, The Lanier Law Firm is committed to addressing client concerns with effective and innovative solutions in courtrooms across the country. The firm is composed of outstanding trial attorneys with decades of experience handling cases involving pharmaceutical liability, asbestos exposure, intellectual property, business litigation, product liability, toxic exposure and maritime law.
For more information please contact J.D. Cargill at 713-659-5200.
SOURCE The Lanier Law Firm