Professional Negligence Law Reporter

Budget Inns of Pensacola was covered by a Lloyd’s of London all-risk insurance policy with limits of $4.6 million for structural damage and $400,000 for personal property. When the Pensacola, Fla., area experienced record rainfall in April 2014, the hotel sustained water damage to its roof and its interior. The hotel filed a property damage claim with Lloyd’s, which denied the claim.

Budget Inns sued Lloyd’s of London, alleging insurance bad faith and breach of contract. The plaintiff’s expert asserted that the hotel damage resulted from water infiltration through the roof’s seams, not wear and tear, and that some of the hotel rooms were completely destroyed by water damage. 

The jury awarded more than $880,900.

Citation: Budget Inns of Pensacola, Inc. v. Certain Underwriters at Lloyd’s, London, No. 2015 CA 000571 (Fla. Cir. Ct. Escambia Cnty. July 11, 2018).

Plaintiff counsel: Keith W. Weidner and J. Phillip Warren, both of Pensacola, Fla.

Plaintiff experts: Todd Alford, general contracting, and Allen Strum, meteorology, both of Pensacola; and Robert Hinojosa, engineering, Miramar Beach, Fla.

Defense experts: Randy Ison, general contracting, Alpharetta, Ga.; and Thomas Mont Alto, architecture, Richfield, Ohio.