A federal appeals court on Monday upheld a lower court ruling in coverage litigation filed by a church that led to a $400,000 judgment against the insurance company.
Church of the Open Door of Waco sued Merrill, Wis.-based Church Mutual Insurance Co. in US District Court in Waco, Texas, in a dispute over coverage for a 2018 wind/rain/hail incident that damaged its roof, according to court papers in Church of the Open Door of Waco v. Church Mutual Insurance Co .
After a trial in 2021, a Waco jury ruled that Church Mutual did not honor its agreement to pay for all damages and awarded the church $285,000 for breach of policy and $115,000 in tort, for a total of $400,000. The district court judge entered the final judgment of $400,000.
The insurer appealed, arguing that the amount awarded by the jury was too high; the award should not have included any award for non-contractual damages; and the costs assessed against the insurer are not compensable by law.
It did not challenge the jury̵
7;s finding that it breached its contract and is liable to the church.The lower court was affirmed in a two-page ruling by a three-judge panel of the 5th US Circuit Court of Appeals in New Orleans. “We conclude that the district court thoroughly considered Church Mutual’s motions and committed no reversible error,” it said.
Attorneys in the case did not respond to requests for comment.
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