WSHB is proud to announce a significant triumph secured by New York Partners John Cofresi and Richard Sprock in a recent insurance coverage arbitration. The majority of the arbitration panel, composed of highly experienced arbitrators, delivered a defense verdict, denying the claimant's $15 million claim for business interruption and extra expense stemming from the suspension of manufacturing at one of its manufacturing facilities. The claimant also sought consequential damages for breach of the implied covenant of good-faith and fair dealing so as to expose our client to the considerable attorney's fees accrued by claimant's law firm.

"This win is a testament to our team's dedication and legal acumen as well as the trust our clients place in us," stated New York Co-Managing Partner, James Tyrie. "Navigating high-stakes arbitration requires a deep understanding of the law and a strategic approach, and we are thrilled to have achieved a favorable outcome for the client."

WSHB's client, a surplus lines insurer, underwrote a business interruption and extra expense policy with a unique coverage trigger for all scheduled manufacturing facilities, which included numerous facilities across the globe. The heart of the dispute concerned whether the insured-claimant had failed to disclose material information relating to one of its facilities as required under the policy's conditions concerning notice and whether it materially misrepresented or omitted facts during renewal underwriting. Although the insured-claimant attempted to bring itself within a number of safe-harbor carve outs in the policy for inadvertent misrepresentations and asserted that it did not believe a short-term suspension required notice when it did not foresee its self-insured retention being breached, the panel's majority ruled in favor of our client after a merits hearing. In doing so, the panel determined that whatever subjective belief that the insured-claimant's executive leadership held was not supported by the contemporaneous objective documentary evidence which acknowledged the severity of the situation.

The arbitration process involved highly specialized experts in the relevant manufacturing processes, extensive document productions, witness depositions across the country and in Europe, and a week and a half merits hearing, demonstrating WSHB's commitment to thorough preparation and advocacy. In the end, the arbitration award was rendered in favor of our client. The Panel also dismissed all of the claimant's requests for sanctions and fees related to discovery disputes as well as flatly rejecting their bad faith claims and consequential damages.

"This hard-fought victory exemplifies WSHB's unwavering commitment to legal excellence in the pursuit of protecting our client's interests, " said Cofresi. "It underscores our dedication to navigating intricate legal landscapes and securing favorable outcomes for our clients."

Wood Smith Henning & Berman: Your Trusted Partner

Experience the power of a proven industry leader in the law. WSHB is renowned globally for our exceptional trial results and expertise in handling complex litigation. With our nationwide network of nearly 500 lawyers across 41 office locations, we are dedicated to providing comprehensive litigation and counsel to both public and private companies. From start-ups to Fortune 100 corporations, we deliver unrivaled legal representation that consistently achieves favorable outcomes for our clients.

At WSHB, our strength lies in our diverse and accomplished team of attorneys. We boast thought leaders and defense specialists in over 40 fields of practice, covering an extensive range of specialties. Founded in 1997, we are proud to be among the top ten law firms in the nation for diversity, female partners, female lawyers, and Hispanic lawyers. This rich tapestry of diversity forms the foundation of our success when presenting cases to juries of our peers, ensuring we understand the unique nuances underlying each claim.

Our expansive geographic footprint allows us to provide effective and efficient representation to clients nationwide, regardless of their location, background, or legal expertise. By prioritizing strategic and cost-effective approaches to litigation, our dedicated attorneys work tirelessly to protect the interests of our clients. We have a track record of success, securing numerous victories such as summary judgments and defense verdicts on behalf of our clients. As a trial firm, we have taken over 2,000 cases to verdict, making us well-equipped to handle even the most complex and high-stakes litigation matters across the country.

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