Wing Inflatables has been awarded $19,266,297 in compensation, interest and damages following a dispute with Lloyd’s Syndicates that began in February 2021.
The award follows on from a three-week trial in San Francisco Superior Court, and a jury verdict against Lloyd’s for breach of contract and bad faith in handling an insurance claim by Wing Inflatables.
The case concerned the wrongful handling of a claim made by Wing under a representations and warranties insurance policy that Wing purchased in connection with a 2019 business acquisition.
After the acquisition closed, Wing found errors in the warranted financial statements and made a claim on the insurance policy in May 2020.
Every negative stereotype associated with the insurance industry was on grand display.
Andrew Branagh
Lloyd’s of London has been told to pay $3,094,083 in compensatory damages, pre judgment interest of $1,172,214 and $15,000,000 in punitive damages for the total award of $19,266,297.
Judgment on the jury verdict was entered in August 2024 with Lloyd’s paying the prejudgment interest and compensatory damages part of the judgment but appealing the $15,000,000 punitive damages award.
For its part, the Wing Group appealed a post-trial decision by the San Francisco court denying an award of attorneys’ fees to Wing.
On appeal, Lloyd’s moved to dismiss the Wing Group’s appeal as untimely, but the California Court of Appeal has denied that motion in a decision that has been certified for publication.
Both appeals remain pending.
Business partnership
“We entered into an insurance relationship in good faith with Lloyd’s in 2019, expecting a business partnership that would protect us against unwanted surprises that might arise. Those expectations were never met,” said Andrew Branagh, CEO of the Wing Group.
“Lloyd’s misconduct, obfuscation, bullying, ignoring, belittling, and overall approach toward Wing, when we were in a time of need, is so disappointing and unfortunate.
“Every negative stereotype associated with the insurance industry was on grand display. In our view, this could be a case study in what not to do as an insurance company. I wish that this outcome would serve to change their behavior. Unfortunately, it appears it will not.”
Bad faith conduct
Mark Goodman, Wing’s lead counsel, added: “Unlike many small businesses in its position, Wing had the fortitude to push back on Lloyd’s bad faith tactics and fight hard to obtain the insurance policy benefits to which it was obviously entitled from the outset.
He added: “It is unfortunate that Wing was required to expend so many resources to get what it deserved but we are obviously pleased that the jury saw Lloyd’s conduct for what it was and we look forward to Lloyd’s finally paying what it owes, both by satisfying the jury’s award and reimbursing Wing for the attorneys’ fees that it was forced to incur as a result of Lloyd’s bad faith conduct.”
The Wing Group is based in California. The group and its companies manufacture life jackets, boats, and other safety equipment for both recreational users and US military branches, including the Coast Guard under the brands Wing, Henshaw, Patten, Fabtek and Mustang Survival.
