Represented ABT Building Products Corp. and ABTco Inc., one of the largest manufacturers of building materials in North America, and working with another firm obtained a jury verdict of more than $18 million in the United States District Court for the Western District of North Carolina (Statesville Division). ABT sought coverage under a three-year umbrella policy issued by National Union with respect to numerous class actions and individual lawsuits alleging defects in hardboard siding manufactured by ABT. The jury awarded our clients $2.5 million for breach of contract, $3.9 million for unfair and deceptive trade practices, $3.9 million for bad faith and $7.5 million in punitive damages for the carrier’s bad faith denial of coverage, misrepresentation of policy terms and failure to effectuate a prompt and fair settlement of the underlying lawsuit. The trial judge trebled the unfair and deceptive portion of the award and granted our clients’ motion for nearly $2 million in attorney fees. The Fourth Circuit upheld.
ABT Building Products Corp. v. National Union Fire Ins. Co. of Pittsburgh, Inc., 472 F.3d 99 (4th Cir. 2006).
