Cases & Deals

Pregnancy center settles with insurance company over water heater explosion

Clients Womankind Maternal and Prenatal Center

Jones Day successfully concluded representation of a maternal and prenatal center for matters related to a July 2005 incident in which a water heater expansion tank installed above the center's office failed, causing extensive damage. Erin Dickinson had primary responsibility for the case, with oversight from Richard Stuhan. The agency sustained over $40,000 in out-of-pocket damages to its offices and suffered an interruption in providing its services to women and families in need when the tank failed. However, the agency's insurer only indemnified it for a small portion of its loss. In September 2006, we negotiated a favorable settlement with the agency's insurance company, bringing its coverage for the loss to above eighty percent. The insurer also agreed to waive its subrogation rights with regard to any other claims the agency might have from this loss. Brian Tohey, Paula Shakelton, Matthew Silversten, and Jill Spindler worked on this insurance claim.

We then pursued a products liability claim against the manufacturer for the expansion tank. Shortly after submitting our claim, we learned that the manufacturer was entering Chapter 11 bankruptcy. After the manufacturer emerged from bankruptcy, we negotiated a settlement of our claim with the manufacturer for $10,000. This brought the agency's total recovery to slightly more than its out-of-pocket losses.

Womankind v. CNA Litigation

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