Verdicts & Settlements

11/05/2013; SDNY: G investors Holding, LLC v. Lincoln Life Company, Inc. – Jury Verdict- $29,819,182.46

In 1999, Sam Gindi bought a life policy from Lincoln Benefit Life Company. Under this policy, it was undisputed that Gindi’s annual premium was fixed during the first ten years. The parties also agreed that the premiums rose sharply after those ten years. The dispute arose regarding conversion privileges that Gindi believed was assured throughout the first ten years of his twenty-year life insurance policy. The conversion privilege would allow Gindi to convert his current policy into whole or universal life insurance policy, which had a comparatively lower annual premium. About one year into the policy, Gindi, justifiably, asked for clarification regarding the convertibility provision. He was assured that the provision was available throughout the entirety of the policy. In 2003, about three years later, and four years into the twenty-year policy, Gindi received a letter from Lincoln which reiterated his convertibility provision but required Gindi to affirmatively exercise his conversion right within 30 days. Gindi did not accept these stringent conditions but carried on under the assumption that convertibility was promised throughout the first ten years of the policy. Four years later, with two years still remaining on the policy, Gindi formally requested to convert the policy on or before the expiration of the ten-year policy. Lincoln refused, citing the fact that Gindi did not exercise the provision during the 30 day period in 2003. Weg and Myers’ Dennis D’Antonio, in the U.S. Southern District Court of New York, adamantly advocated that Lincoln breached their contract with his client, Gindi. Sadly, Gindi passed away on May 20, 2012, and his claim was subsequently left in a Trust with Lollytogs, Inc. In front of a jury trial, Dennis D’Antonio obtained a resounding victory for his client. They found that Lincoln Insurance had breached their contract with Gindi and owed him the full $20,000,000.00 from the twenty-year life insurance policy, as well as $7,309,370 in premiums for the life insurance coverage Lincoln provided from the commencement of this action until the death of Gindi. This amount coincided with the premium cost under the conversion provision. The verdict totaled $29,819,182.46, which was awarded to Gindi’s trust, Lollytogs. In addition, Lincoln’s Motion to Amend the Judgement was denied by the court.

10/01/2014; SDNY: Cammeby’s Management Company, LLC v. Alliant Insurance Services, Inc. – Jury Verdict $23,205,479.45 –Reaffirmed 6/17/2016

Cammeby’s Management Company suffered more than $30 million in losses as a result of Superstorm Sandy. Cammeby’s, under the impression that their $30 million flood insurance policy covered a majority of the damage, was distraught when they were told that were being paid only $10 million. Cammeby’s was informed that its insurance broker, Alliant Services, had agreed to reduce the policy from $10 million to $30 million. With the stakes this high, Cammeby’s looked to Weg and Myers for legal representation. As it became clearer that the policy was indeed reduced, Weg and Myers mounted a strong attack claiming that Alliant Services negligently reduced their client’s flood insurance policy. During a trial in August of 2014, a jury in the U.S. District Court in the Southern District of New York agreed with Dennis D’Antonio’s argument that Alliant acted negligently when it reduced the policy. Therefore, Alliant was liable to pay out the difference created by the negligent act. After including pre-judgment interest, the award for damages totaled $23,205,479.45.

In January of 2016, Alliant Services was granted a new trial on the defense that Cammeby ratified the $20 million reduction to its insurance coverage. On June 17, 2016, once again, the jury found in favor of Cammeby. A jury found that Alliant had failed to prove Cammeby ratified the negligent reduction of the policy. In addition, Alliant failed to show that pre-judgment interest should have stopped accruing after the first trial. In this instance, because Alliant got a new trial, pre-trial judgment interest, which is larger than post-trial judgment interest, continued until of the second trial.

03/13/2008; SDNY – Federal insurance Company v. PGG Realty, LLC.- Counterclaim Verdict for $7,223,000.00—Reaffirmed- 07/09/2009; 2^nd Circuit- Federal insurance Company v. PGG Realty, LLC-

PGG Realty, LLC’s sole shareholder, Ben Ashkenzy, signed a contract with Federal Insurance Company to insure his new purchase: a mega-yacht he named “Princess Gigi.” The policy, effective December 13, 2015, insured the hull of Princess Gigi on an all-risks basis for $7.023 million. Additionally, the policy included coverage of up to $200,000 for personal property on board the yacht. On February 4, 2006, Princess Gigi set sail from Fort Lauderdale en-route to St. Martin, under the guidance of experienced captain, Charles Papa. The next night, the port side generator shut down, the starboard generator failed, and both engines died. With no power and water accumulating throughout the yacht, Princess Gigi was abandoned. Nobody was harmed, but Princess Gig was beyond salvageable. The court found that both bad weather and the loss of power led to Princess Gigi’s demise. During a bench trial before the U.S. District Court in the Southern District of New York, Dennis D’Antonio defended his client against a barrage of claims. D’Antonio successfully argued that his client adequately informed his insurer about the condition of the boat, and the boat was seaworthy at the time it was insured and when it set sail. The Court denied Federal Insurance’s motion for a Declaratory Judgment in their favor and, instead, granted PGG realty’s counter-claim for damages totally $7,223,000, under the all-risk insurance policy. On July 9 ^th, 2009, this ruling was upheld upon appeal to the United States Court of Appeals for the Second Circuit.