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Complex Coverage Cases

On the high end of the spectrum, the firm manages large claims involving coverage issues and losses and class actions through the use of a team approach. The largest exposure to a firm client in a coverage related matter involved alleged coverage for intentional misappropriation regarding the licensing of patented cancer drugs and the failure to pay royalties in excess of $240 million. Other examples of complex coverage analysis and litigation performed by the practice group include:

  • fire explosion at waste reclamation plant resulting in $12 million property loss and catastrophic multi-million dollar bodily injury claims;
  • international product liability claims arising from chemical induced delamination of computer circuit boards resulting from Taiwanese manufacturing operation;
  • listeria infestation of national meat processing facility resulting in disputed total coverage claim alleged in excess of $30 million and ensuing bad faith litigation;
  • first and third-party coverage claims arising from major warehouse fire to FDA certified pharmaceutical warehouse involving toxic chemicals resulting in a toxic tort class action litigation and property loss claims with a disputed value ranging between $60 million to $100 million dollars;
  • a claim brought by a major national airline for business interruption coverage resulting from an electrical data glitch causing an electrical shut-out of the airline's ability to perform reservations for flights for seven days resulting in a business interruption claim in the $10-$15 million range;
  • coverage litigation where the underlying claims involved one of the nation's largest international hotel chains and claims asserted in four class action lawsuits, each seeking in excess of $100 million alleging that the hotel chain systematically designated and charged its patrons fees improperly designated as taxes;
  • coverage claim in excess of $7 million and alleged bad faith as part of $32 million overall loss asserted by international mining company under an environmental impairment liability policy regarding a catastrophic tailings impoundment failure and resulting environmental damage;
  • $240 million intellectual property/drug licensing coverage claims and alleged bad faith brought by major medical research and drug companies;
  • Arizona counsel for priest/clergy malpractice coverage regarding claims of sexual abuse perpetrated by Roman Catholic priests.
  • potential coverage claim alleging damages in excess of $30 million arising from manuscripted environmental remediation policy for reclamation project being remediated under the Brownfield's Revitalization Act.
  • coverage dispute arising from class action litigation brought under the Telephone Consumer Protection Act where a $40+ million judgment was entered against the policyholder.
  • coverage litigation arising from sale of tainted/infected meat products which resulted in a $9 million judgment against the wholesaler/distributor policyholder.
  • provided coverage advice and defended a major disability income provider where it was alleged that the insurance company engaged in a pattern and practice of targeting of insureds who appeared on a company "hit list." The client suffered several verdicts nationally with one verdict reaching $57 million. Following these verdicts, the insurance company sought advice from Kunz, Plitt, Hyland & Demlong because of the large potential risk associated with the emerging claims.
  • potential 30,000 member class action for performing unconstitutional policy of performing strip searches in New Mexico with potential excess coverage exposure in excess of $50 million.
  • class action construction defect litigation involving 2700 high-end residential homes and large excess coverage for a major soils subcontractor. Potential coverage exposure in excess of $40 million.
  • construction defect coverage litigation and bad faith claim defense in action brought by developer to recapture remediation on 70 homes alleged to have been damaged by faulty workmanship.