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Decisive in the insurer's advantage against recyclers is confirmed



A federal appeals board confirmed the dismissal of an infidelity against an insurer accused of insufficient compensation for a recycling company's business interruption in connection with a fire.

Phoenix C & D Recycling, Inc., which operates a plant in Des Moines, Iowa that recycles construction waste and produces biofuels from wood products, was hit by a fire in July 2017, following Friday's decision by the 8th U.S. Circuit Court. of Appeals in St. Louis i Hallmark Specialty Insurance Co. v. Phoenix C & D Recycling Inc.

Dallas-based Hallmark Specialty insured Phoenix for up to approximately $ 6.5 million in property damage and business disruption. Hallmark paid Phoenix $ 1

24,800 for damaged wiring and equipment, including in July 2018, although Phoenix claimed it should have paid it in October 2017.

In addition, the company demanded $ 200,000 for business interruptions, even though it only paid 28 $ 774.34. , according to the decision.

Hallmark brought an action before the U.S. District Court in Des Moines, seeking a declaratory judgment that it did not violate insurance policy or act in bad faith when it adjusted Phoenix's claims.

The court approved Hallmark's proposal. for a summary judgment, even if it granted Phoenix a request that the insurer was not entitled to the insurer's request for attorney's fees. In the discussion of the disputed payment for business interruption, the decision stated that the insurer's consulting firm stated that the calculation of $ 28,774.34 was preliminary and subject to change upon receipt of additional financial information. that it had provided sufficient information and that, based on the financial information, it was entitled to a larger payment, "the decision said.

" Phoenix did not provide an alternative calculation or explain why Hallmark's calculation was incorrect. Based on these facts, we find that Hallmark had an objectively reasonable basis for denying Phoenix's claim to limit its payment to $ 82,774.34, "it said, confirming the lower court's decision.

Lawyers in the case did not respond to 's request for comment.

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