Church Wins Storm Damage Case Against Insurer
A three-judge panel of the 11th U.S. Circuit Court of Appeals has upheld a $1.75 million jury verdict in favor of Central Baptist Church of Albany, Georgia. The church sued Church Mutual Insurance Company after a 2014 storm caused significant roof damage. The insurer initially paid only about $1,300, deeming the damage minor. Later assessments revealed that repairs would cost more than $1.3 million.
Court Rejects Claims of Double Recovery
The appellate panel rejected Church Mutual’s argument that the church received a “double recovery.” U.S. District Judge Federico A. Moreno, sitting by designation, authored the opinion. He stated that inflation-adjusted damages were appropriate and did not constitute a second payment for the same damage. “The jury compensated the church for the diminished purchasing power due to inflation,” Moreno wrote.
Disputed Claims and Legal Challenges
The church filed a lawsuit in December 2016, accusing Church Mutual of breach of contract. During litigation, Hurricane Michael caused additional damage in 2018. Central Baptist filed a separate claim with AmTrust North America but failed to inform Church Mutual. The insurer accused the church of misrepresentation. However, the trial court found no legal basis for that claim and the issue was dropped during trial.
Jury Sides With Church After Roof Dispute
In March 2020, a jury awarded the church $1.75 million, including prejudgment interest of roughly 7%. The jury sided with the church’s evidence showing extensive roof damage and rising construction costs. The appellate court confirmed the verdict, stating the award reflected actual losses and inflation, not an improper windfall.
Supporters and Detractors React
Supporters of the church view the decision as a victory for policyholders facing insurance denials. They argue it reinforces accountability among insurers. Critics, however, warn the ruling could lead to increased premiums, arguing the judgment opens the door for inflated claims without full transparency.
Source:
Court Confirms Insurance Firm to Pay $1.75M to the Church for Storm Damage
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