The United States Court of Appeals for the Fourth Circuit has upheld a jury verdict and reinstated contract damages awarded by the jury after a three-week trial in July 2021.
Two years ago, Bailey & Glasser, LLP, on behalf of Ramaco Resources, Inc., won $7.6 million in contract damages in a lawsuit against insurance companies indirectly owned by Chubb INA Holdings, Inc. The lawsuit stemmed from Chubb’s denial of insurance coverage after the collapse of a coal storage silo, which occurred at Ramaco’s Elk Creek coal complex in West Virginia on November 5, 2018.
The case was litigated in the United States District Court for the Southern District of West Virginia. The verdict included $7.6 million in compensatory damages and an additional $25 million for aggravation and inconvenience. After the jury trial was concluded, however, the district court reduced the contract damages and award of prejudgment interest believing the evidence could not support a conclusion that the critical “Period of Restoration” – during which Ramaco’s expenses and lost income were covered – could extend beyond November 30, 2018. Indeed, the district court reduced the verdict to $1.8 million in contract damages and further held that, because of the reduction, Ramaco had not “substantially prevailed” on its insurance lawsuit. As a result, the district court held that Ramaco was not entitled to any damages for aggravation and inconvenience. T
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