May 12, 2021

Payne & Fears Hits Another Home Run for Policyholder in Coverage Dispute

Payne & Fears’ insurance team partners Nate Cazier and Jared De Jong continued their winning streak on behalf of Rawlings Sporting Goods Co. in its dispute with Starr Indemnity & Liability Co. regarding coverage for an underlying class action lawsuit.

After months of litigation, culminating in summary judgment in favor of Rawlings, Payne & Fears secured payment for all of Rawlings’ unpaid legal fees and invoices, plus interest, and an agreement by Starr to fully defend and indemnify Rawlings through the resolution of the class action, all without Rawlings releasing any of its rights or claims against Starr. As a result, Rawlings was able to dismiss its coverage action without prejudice and turn its undivided attention to defeating the underlying litigation.

“We’re excited to recover all of the unpaid and future litigation costs, which are well into the seven figures,” Nate Cazier said. “What really makes this special is that we were able to maneuver the case in a way where our client was made whole without sacrificing any of its rights or claims in the process.” 

“This arrangement may not seem extraordinary, but insurers often require policyholders to release all of their claims (past, present, and potential) before they will issue payment,” Jared De Jong said. “This deal gives our client an additional level of comfort knowing that it can immediately resume litigation if Starr starts playing games with its coverage.”

And Payne & Fears is still on deck, ready to go to bat for Rawlings in case it does.