Press Release
Press Release
12.08.15
NEW YORK—Pillsbury has achieved a significant result – an appraisal award of more than $39 million – for client Metropolitan Development Group in an ongoing insurance dispute with National Surety Services Corporation (a subsidiary of Fireman’s Insurance Fund).
The overarching case centers on a claim by Metropolitan after defective construction at a 400-unit apartment complex in Camp Springs, Md., resulted in significant water damage and more than $39 million in losses. Metropolitan’s insurer, National Surety, paid approximately $23 million of the claim but refused to pay the full amount on the grounds that the exterior damage was the result of defective construction and not ensuing water damage. Metropolitan filed suit in early 2013 for breach of contract and bad faith.
To avoid a highly factual and potentially confusing jury trial, the Pillsbury Insurance Recovery team demanded an appraisal of the loss, in accordance with the terms of the policy. When National Surety refused to submit the matter to appraisal, Pillsbury filed a motion with the Court seeking an order to compel, which was granted after briefing and oral argument.
Following a one-year appraisal process, the appraisal panel awarded Metropolitan $27,633,900 for building damage and more than $11,500,000 for business interruption losses. The total is $15,973,339 more than National Surety had paid Metropolitan thus far and reflects nearly 100 percent of Metropolitan’s outstanding claim against National Surety. This result significantly improves the client’s position in the related breach of contract and bad faith trial, which should commence in late 2016.
The Pillsbury team representing Metropolitan is led by New York partner Joseph Jean and includes Washington, DC counsel David Beck and New York senior associate Matthew Stockwell.
About Pillsbury Winthrop Shaw Pittman LLP
Pillsbury is an international law firm that prosecutes and defends significant cases for top-tier clients, including their litigation as insurance policyholders. Pillsbury’s Insurance Recovery & Advisory practice was one of the first insurance policyholder practices in the United States—dating back to the Great San Francisco Earthquake and Fire of 1906, when the firm helped business owners recover from their insurers to rebuild the city. We have recovered nearly $15 billion of insurance proceeds—including more than $1 billion in each of 2013 and 2014 alone—for our policyholder clients. We regularly help them obtain broad insurance coverage to address the risks inherent in business today. Pillsbury’s leading policyholder practice has been lauded by Chambers USA, Legal 500 and Best Lawyers in America. For more information visit, www.pillsburylaw.com.