Adjusters Must Pay Nationwide $16 Million

By Daniel Hays

NU Online News Service, March 1, 4:27 p.m.EST?An Ohio jury's $16 million award in a suit brought byNationwide Mutual Insurance Company against a Chicago adjustingfirm cannot be appealed, one of the attorneys on the case saidtoday.

But the jury's decision on Feb. 21 in Columbus, Ohio's U.S.District Court is not one that set in any new legal precedents,according to defense attorney Rick E. Marsh, with Lane Alton Horstin Columbus.

The case against adjuster Larry Wood and the firm of McLarensToplis of North America was prompted by claims brought by sixVirginia Beach hotels for damages resulting from Hurricane Bonniein 1998.

Nationwide charged that the adjusters improperly committed themto pay $21.5 million to repair 577 damaged rooms. TheColumbus-based insurer said its policy limits with hotel ownerProfessional Hospitality covered just $5.3 million.

The jury decided in favor of Nationwide on three claims,awarding $16.2 million.

Mr. Marsh said that prior to the verdict, the parties had anon-appealable "high/low" agreement in place, meaning that hisclients could not be liable for an award amount above or below acertain limit.

He noted that Judge Algenon Marbley had refused a mistrial whenthe original defense attorney, Rick Wurth, became ill and he wasforced to defend the suit with only one day's preparation.

According to Mr. Marsh, another defendant in the case--NationalCatastrophe Adjusters, which had a personnel swapping agreementwith McLarens Toplis--settled before trial.

Mr. Woods, the adjuster, was found by the jury to have verballycommitted to the cost of repairs as well as signing a documentlisting various items involved in the hotels' repair.

Mr. Woods testified that he had discussed the items and thehotel owner misunderstood, thinking he could authorize payment.