Manufacturing company wins insurance coverage arbitration over decision to try underlying case to verdict
Clients Manufacturing company
On behalf of its manufacturing company client, Jones Day won an arbitration final award that conclusively rejected an insurance company's argument that the client should not have tried an underlying covered claim to verdict. The client and the insurer had agreed on a potential settlement sum, but the underlying plaintiff never accepted that amount to settle the claim. Consequently, the client tried the underlying case to verdict, resulting in a plaintiff's verdict much larger than anticipated. Following verdict, the insurer claimed that the client should have settled the case for an amount greater than either the client or the insurer previously had determined to be reasonable. The client resolved to try the insurance matter to conclusion, resulting in an arbitration trial and an award holding that the client's decision to try the underlying case to verdict was eminently reasonable under the circumstances.