Jury Trial Victory In Rescission/Bad Faith Suit

Posted by on Aug 17, 2016 in news, news_older | 0 comments

Jeffrey Charlston secured a significant victory for firm clients United States Fidelity & Guaranty Company (“USF&G”) and American Specialty Insurance & Risk Services (“American Specialty”) after a month long jury trial in the United States District Court for the Eastern District of California.


In United States Fidelity & Guaranty Company v. Lee Investments, LLC, the firm prosecuted a declaratory relief action for rescission of an insurance policy issued by USF&G to a Fresno water park, and defended bad faith and related claims brought by the entity owning the water park, and its broker, Aon. The jury entered unanimous verdicts in favor of USF&G on all of its affirmative claims, and unanimous verdicts against the water park and Aon on all of their claims against USF&G and American Specialty.


Based on the jury findings, the trial court has ordered restitution in favor of USF&G in excess of $1,000,000. The Judgment was affirmed by the Ninth Circuit Court of Appeals in 2011 and a petition for writ of certiorari was denied by the United States Supreme Court.


United States Fidelity & Guaranty Company v. Lee Investments, LLC, 641 F.3d 1126 ( 9th Cir ), cert. denied, 132 S. Ct. 577 (2011).