Complete defense verdict in federal court following a 5-day jury trial on a $2.4M negligent procurement claim.
After a five-day trial in federal court, WWHGD secured a unanimous jury verdict confirming that insurance coverage existed under a professional liability policy. This outcome successfully ended a multi-million-dollar claim of negligent policy procurement against the firm’s insurance agency client.
The case stemmed from a pesticide overspray incident involving a professional agricultural pest control advisor. When the advisor’s insurance company denied coverage and filed a lawsuit to confirm no coverage applied, the advisor responded with a counterclaim and also brought a claim against the agency that sold the policy. The advisor argued that if no coverage was found, the agency had been negligent in obtaining the right policy.
WWHGD stepped in to build a defense based on Arizona’s “reasonable expectations” doctrine, which protects insureds who reasonably believe they have coverage if the policy language is unclear, or if clear language in the policy excludes coverage but is unusual and defeats the dominant purpose for issuance of the policy. With the advisor having limited resources to defend itself, and limited cooperation from its counsel early in the case, WWHGD conducted its own in-depth analysis and gathered key evidence to support both the advisor’s and the agency’s positions.
Although the court initially ruled that the policy language excluded coverage, it allowed the question of reasonable expectations and ultimate coverage under the policy to go to the jury. At trial, WWHGD presented testimony from the agency client and an expert witness to show that a reasonable person in the advisor’s position would have expected coverage, and that the exclusionary language defeated the dominant purpose of the policy.
The jury deliberated for about 90 minutes and returned a unanimous 8–0 verdict finding that coverage did exist. As a result, the insurance agency was removed from the case.
This result showcases WWHGD’s ability to navigate complex insurance coverage and professional liability disputes, even in high-stakes, high-exposure litigation.