Swinehart Won Victory Against Misrepresented Insurance Risk
November 12, 2007
On October 26, 2007, Jim Swinehart received a verdict in a jury trial that took place in Madison, Indiana. Mr. Swinehart represented an insurance company that sued an insurance agent for misrepresenting the nature of a risk to be insured. The insurer had agreed to insure senior citizen apartments. The agent represented to the insurer that the building, a former school, had been renovated as apartments. On the basis of that representation, coverage was bound; however, the renovations were not done (or even begun). A fire occurred at the building, which was still a vacant school. The insurer paid the insured and then sued the insurance agent for the misrepresentation. In May 2004, a jury found in favor of the insurer. The insurance agent appealed. The Indiana Court of Appeals affirmed on liability as to the misrepresentation but reversed on damages.
The case, thus, was a re-trial on damages, and a central issue was the actual cash value of the school building at the time of loss. The jury was presented with evidence as to why the insurer paid the loss and why it paid the amount it did. Expert testimony was presented on the actual cash value of the school. The insurance agency maintained the actual cash value was substantially lower than what the insurer paid. The jury’s verdict was in favor of the insurer in the full amount paid.
Mr. Swinehart was assisted at the trial by Mary Collins.
