Subrogation Unit's Success... : Confidential Seven Figure Settlement
April 24, 2011
Due to a confidentiality agreement, not much can be disclosed. A fire occurred at the Insured’s Premises and the sprinkler system did not extinguish the fire. Arguably, the Insured’s conduct significantly contributed to the sprinkler system not extinguishing the fire. Further, arguably, the Insured’s additional conduct contributed to the spread of the fire. Also, arguably, some other conduct of the Insured resulted in a large portion of the damages. Additionally, during the adjustment stage (prior to our retention), evidence was spoliated.
CM partner Robert A. Stern (New York/New Jersey) and CM associate Virginia M. Markovich (New York), investigated the case, handled discovery and motion practice, and mediated the case. The mediation failed; the adversary would not offer seven figures only nuisance value. The adversary asked the Appellate Court to stay the trial, pending determination of the adversary’s appeal on certain evidentiary and discovery issues. Mr. Stern opposed the stay, and the Appellate Court agreed with us. Mr. Stern and CM associate Matthew J. Vinciguerra prepared the case for trial. Mr. Stern along with Mr. Vinciguerra’s assistance started the trial. The Judge settled the case for the dollar amount that was at the top of the mediator’s recommended range.
An important learning point, just because an insured arguably significantly contributed to the cause of a loss, the spread of a fire and a large portion of the damages, and evidence was arguably spoliated, does not necessarily mean that a file should be automatically closed. A seven figure recovery is possible ?in certain circumstances, with proper preparation and a clear signal to the adversary that the case will be tried!
