Mich. Court’s Ruling: Insurer to Pay Sterling Heights More than $14 Million

December 7, 2007

United States District Court Judge Nancy G. Edmunds of the Eastern District of Michigan in a final judgment ordered United National Insurance Co. to pay the city of Sterling Heights $14,640,632.90 plus taxable costs as damages for United National’s breach of its insurance policy with the city.
When combined with the $18.75 million settlements with two of the
city’s other insurance companies, Sterling Heights will ultimately recover well over $33 million from its insurers for its losses, according to a release by Anderson, Kill &Olick, LLCC, attorney’s for the city of Sterling Heights, Mich.
The insurance dispute arose when the city’s insurance companies
denied claims for the defense and indemnification of a series of
lawsuits brought against the Sterling Heights by Hillside Productions, Inc., the owners/operators of the Freedom Hill Amphitheatre located in Sterling Heights. Hillside’s claims, which included allegations of
> defamation and civil rights violations, were ultimately resolved by a $31 million settlement in March 2004. With the judgment in the city’s favor, the city will have recovered almost all of the $31 million settlement, the vast majority of the legal costs of defending against the Hillside lawsuits, interest, and damages that arose as a consequence of the insurance company’s breach.
United National is expected to appeal the Court’s judgment. A phone message from Insurance Journal to United National was not returned as of this writing.>

Source: Anderson, Kill & Olick, LLC

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