Apartment Complex Recovers Against Insurer for Tornado Damage

Case Caption:  Affordable Homes of Midtown Atlanta v. RSUI Indemnity Co., Civil Action File No. 2009CV175903
Court:  Fulton County Superior Court
Judge:  Kimberly M. Esmond Adams
Plaintiff’s Attorneys: Peter Coffman, Stacey Carroll and Kathryn S. McConnell, Dow Lohnes
Defendant’s Attorneys: Paul W. Burke and Chad E. Jacobs, Drew, Eckl & Farnham
Alleged Damages: $525,000 in physical damages; $384,000 in lost rent
Verdict: $766,190.00
Date of Verdict:  April 22, 2011

A 60-unit apartment complex sustained severe damage from the tornado that came through Atlanta in the spring of 2008.  The owner of the complex, Plaintiff Affordable Homes, claimed that the storms caused extensive damage to the roofs as well as to interior drywall, flooring and cabinetry in multiple units.

Affordable Homes sued the complex’s insurer, RSUI Indemnity Co. for breach of contract and the bad faith denial of coverage, arguing in part that the RSUI adjuster never even inspected the roofs for damage.  

The Court granted Defendant’s Motion for Directed Verdict on Plaintiff’s bad faith claim.  The jury awarded Plaintiff $1,095,000.  However, since their verdict included $330,000 in attorneys’ fees for bad faith, it was reduced to $766,190.00.
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