Massachusetts Partners Obtain Defense Verdict in Disputed Fire Coverage Trial

Boston-area Partners Nora Adukonis and Gayatri Deodhar recently prevailed in the Barnstable Superior Court following a three-week trial on behalf of our insurance carrier client in a first-party insurance coverage and bad faith case arising from a commercial building fire.

Plaintiffs were the owners of a leather goods store housed in a single-story, ranch-style building along a busy commercial thoroughfare in Yarmouth, Massachusetts. The building was damaged by a fire that began in the middle of the business day in the store’s unfinished, walk-up attic. Despite investigation by the state police, the cause of the fire remained “undetermined.”

Plaintiffs claimed that substantial amounts of cash, irreplaceable artwork, and many other significant items, including all documentation concerning the authenticity, ownership and value of the damaged items were stored in the attic at the time of the fire, and as a result, were burnt to ash.

After our insurance carrier client paid policy limits on the business personal property, and while the building claim was pending, Plaintiffs submitted claims for money and securities, “fine arts” and many other items, all at policy limits. When they weren’t paid what they demanded, Plaintiffs filed suit against several defendants, including our insurance carrier client, claiming that our client improperly delayed payment and failed to respond to claims communications, and sought recovery for breach of contract, bad faith/violation of G.L. c. 93A, negligence and negligent infliction of emotional distress, among several other claims.

On behalf of our client, our defense attorneys Nora Adukonis and Gayatri Deodhar brought counterclaims seeking a declaration that the policy was void due to “fraud and false swearing,” including material omissions and misstatements concerning the existence of security interests in the property. Nora Adukonis and Gayatri Deodhar also argued that Plaintiffs failed to satisfy the condition precedent to suit.

Following a three-week trial, the jury was out for less than three hours before returning a defense verdict as to each of Plaintiffs’ claims, as well as a finding for our client on each count of the counterclaims.

Nora R. Adukonis primarily practices in the areas of premises, products, construction and employment liability. She defends clients in actions alleging property damage or injuries from fires, floods, defective products or chemical exposure.

Gayatri R. Deodhar advises clients in civil litigation matters including premises liability, construction, personal injury and products liability cases, and against employment and professional liability claims.