Professional Negligence Law Reporter

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Breach of contract

September/October 2023

Southern Management Services, Inc., a woodchip shipper, held a commercial inland marine insurance policy with Wesco Insurance Co. When its woodchipper, which was worth $1.2 million, was destroyed in a fire, Southern Management submitted a claim to the insurer. The insurer denied the claim.

Southern Management sued Wesco Insurance Co., alleging breach of contract. The defense argued that the plaintiff had failed to cooperate with its investigation and had been untruthful.

The jury awarded approximately $1.7 million, including prejudgment interest.

Citation: Southern Mgmt. Servs., Inc. v. Wesco Ins. Co., No. CV-2017-000153 (Ala. Cir. Ct. Jefferson Cnty. Dec. 19, 2022).

Plaintiff counsel: Michael D. Petway, Birmingham, Ala.; and Charles E. Robinson and W. Cone Owen Jr., both of Ashville, Ala.