An insurer is not obliged to pay a $ 5 million verdict arising from a fight in which a man was seriously injured because the bar owner did not comply with his policy rules, a federal appeal court said in a confirmation of a lower court
I September 2012, a bar patron set Emmanuel Kehagias at Ruth's Bar and Grill in Mount Pleasant, South Carolina, leaving Kehagias in a permanent, quasi-vegetative state, according to Thursday's 4th American Court of Appeal's appeal in Richmond, Virginia, in Founders Insurance Co. v. Richard Ruths Bar & Grill LLC.
Herr. Ruth and his wife had purchased commercial general and liquor liability policies from Des Plaines-Illinois based founders. The founder does not sell insurance directly and uses a wholesaler and insurance agent, through which the couple received the coverage under judgment.
The policy required Ruths to notify the Founders "as soon as possible of any event that could lead to a claim against the insured." Kehagias, they forwarded a message of representation card that they received from their lawyer to their agent, but the founders were not notified.
In February 201
In April 2014, the court issued a court order against the bar and the couple individually for $ 5 million. Ruthsna then assigned his rights to the case to Mr. Kehagias.
Founders accused the US District Court of Charlotte, South Carolina, of the coverage issue, and Kehagias countered the insurer. The district court decided on the founders of the founders, who were maintained by a unanimous third-panel.
Founders "did not receive notice of the trial or copies of the legal documents until Ruths was in default in the underlying action" The post comments were not able to properly investigate the case, to bring defense to the trial or to negotiate a solution without disability by the standard position. This, in turn, led to the introduction of a $ 5 million sentenced sentence against Ruths, the court said.
"On the basis of these facts, we find that there is no real matter of material fact if the Foundation's rights were substantially prejudiced by Ruth's failure to notify the trial and copies of the legal documents," the court said in confirmation of the court's decision.
Founders lawyer Russell F. Conn, a partner of Conn Kavanaugh Rosenthal Peisch & Ford LLP in Boston, said in a statement that he was satisfied by the court.
He said the court and fourth circuit decision "fully agree to control the Supreme Court of South Carolina, and actually prejudice nationwide, that an insured who fails in time to forward diet paper to his insurer, resulting as it did here in one $ 5 million judgment, significantly complicating the insurer's rights and void coverage.
"It was important here, despite the prejudices, that the Founders entered and defended during a full reservation and did everything possible to remove the standard, including even appeal, while the plaintiff's lawyer constantly refused to agree to the standard's removal. "
Mr. Kehagia's lawyer could not immediately be reached for comment.