Pin-Pon Corporation v. Landmark American Insurance Co. , case number 2009 0320 CA 03, consolidated with Pin-Pon Corporation v. Lexington Insurance Co., case number 31 2009 CA 01 2244, May 3, 2012 (Indian River County, FL)
Lexington Insurance Co. and Landmark American Insurance Co., were found by a Florida state jury to be liable to Gloria Estefan’s Pin-Pon Corp. in the amount of $6.7 million for failing to provide coverage for hurricane damage.
The insurers had made some payments, but the jury found that the insurers failed to provide the coverage that they owed for damage to the company’s Vero Beach hotel. Hurricane Frances hit the hotel in August 2004 and Hurricane Jeanne hit again in September 2004, causing extensive damage. The jury found that the insurer’s had failed to pay for building damages, code upgrade damages and costs while the hotel was unable to operate as repairs were being made.
Gloria Estefan’s hotel company had a primary policy with Lexington and an excess policy with Landmark at the time that the Hurricanes hit. Both policies provided coverage for windstorm damage and business interruption coverage. The hotel company provided documentation of its losses but the insurers refused to pay the full amount. The insurers argued that the hotel company was renovating the hotel and much of the repairs and business interruption were due to the renovation and not the storm damage.
The jury found that the insurers were obligated to indemnify the hotel for the costs it incurred in having to restore the hotel before it could be renovated in the first place. Moreover, the jury found that the insurers had to indemnify the hotel for the damages it incurred in bringing the hotel up to code after the damage caused by the Hurricanes.
The hotel reopened in 2008, and the hotel company is going to seek prejudgment interest on the $6.7 million for the time between 2008 and this jury decision.
For a copy of the decision click here
Clay Waterman and Joanna Roberto