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Subcontractor has priority in cases against the Allied World Assurance Unit



A federal appeals board has refused to order a new trial in a case in which a jury ruled an Allied World Assurance Co. unit and its main contractor policyholders.

Subcontractor A.T.O. Golden Construction Corp. filed contract lawsuits against Harvey, Louisiana-based Pete Vicari General Contractor LLC and its guarantor, Allied World Insurance Co., in connection with the construction of two residential towers in Miami, following Wednesday's decision by the 11th U.S. Circuit Court of Appeals in Atlanta ATO Golden Construction Corp., v. Allied World Insurance Co., Pete Vicari General Contractor, LLC.

Following a trial in the U.S. District Court in Miami, the jury returned a $ 75,000 verdict in favor of the ATO for one tower and $ 50,000 for the other. Following the verdict and the trial, the district court filed a final verdict of $ 1

25,000 plus $ 9,729 in interest in favor of the ATO and against Vicari and the Allies, according to the decision.

A unanimous three-judge appellate court upheld the verdict. and denied the proposal for a new trial, rejecting the appellants' primary claim that the ATO "did not provide any competent or legally sufficient evidence" of damages to support the jury's judgment .

"This evidence included, for example, certain amendments to orders and testimonies that adequately establish the reasonable value of the work, materials and services provided by the ATO for each tower," the decision states. in the light that is most favorable to the ATO, the unpaid amounts for change orders – without including the overheads and the profits in them – exceed the jury's judgment on each tower. ”

Attorneys in the case did not respond to a request for comment

Earlier this week, a federal appeals court upheld a lower court ruling that an Allied World Assurance Co. unit was not liable to compensate a Minnesota tile dealer during its

decision. directors and officer surplus liability for claims arising from the policyholder's alleged failure to report related party transactions.


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