The firm served as lead counsel on behalf of Strategic Outsourcing Inc. (“SOI”) in litigation alleging breach of a contract to provide three years of “guaranteed cost” workers compensation insurance coverage to our client, a large professional employer organization. At the end of the second year of the program, the insurance carrier invoked the growth of our client’s payroll and alleged increased exposure to loss as a basis to “re-rate” the program by doubling the premium cost. When our client refused to pay the increased premium, the carrier canceled coverage; and our client sued for breach of the three year contract. The jury’s award of more than $9,000,000 tied for the second largest verdict in a single plaintiff case tried during 2006 in North Carolina, according to North Carolina Lawyers Weekly, "Large Verdicts & Settlements" (January 29, 2007). On appeal, the fourth circuit ruled that the damages should be limited by the 90 days “at will” cancellation provisions of the underlying policy, but otherwise affirmed the jury’s verdict and the trial court’s rulings in favor of our client.
Strategic Outsourcing, Inc. v. Continental Cas. Co., 414 F. Supp. 2d 545 (W.D.N.C. 2007), aff’d in part, 274 Fed. Appx. 228 (4th Cir. 2008).
