Aircraft Company / Faulty Work Claims
We advised an aircraft company on insurance issues arising out of claims alleging faulty work in connection with the conversion of passenger airliners to cargo aircraft. The insurer defended under a reservation of rights but filed a declaratory relief action in an attempt to withdraw from its defense obligation. We successfully stayed that action so that our client was defended by the insurer through trial, appeal, retrial, appeal and yet a third trial and, finally, a successful appeal. During that time we resolved the dispute regarding the duty to defend on favorable terms to our client.
Aviation Refinancing Transaction v. Certain Underwriters at Lloyd’s
We litigated one of the first claims presented under a Lloyd’s-issued contingent aircraft hull and liability policy, involving over $18 million in losses arising from aircraft that were converted by a bankrupt airline. After prevailing in a Phase I bench trial and subsequent motion practice, we obtained a substantial recovery in settlement shortly before the Phase II jury trial, which was to include trial of our client’s bad faith claims. Aviation Refinancing Transaction v. Certain Underwriters at Lloyd’s
, S.F. Sup. Ct. Case No. CGC-09-494500.