Huge Award for Wrongfully Denied Coverage

A former Arizona public official was being sued in federal court on claims arising out of his official duties. After a devastating jury verdict was rendered against the public official, the insurance company that should have been paying the judgment and providing him with representation on appeal denied coverage, leaving the public official to pay out of his own pocket the costs of the appeal and paying off the judgment. The trial team at Gammage & Burnham, led by Rick Mahrle, filed suit against the insurance company. Following a trial, the jury found that the insurer wrongfully denied coverage. The damages and attorneys’ fees awarded exceeded $4.5 million. The insurer appealed to both the Arizona Court of Appeals and the Supreme Court, which upheld the jury’s award. With accrued interest, the public official’s judgment against the insurance company was more than $5.59 million.