A Case to Keep Your Eye On – $29,000,000 Chapter 75 Judgment
By There is a case making its way through Onslow County Superior Court that you may want to keep an eye on. In Ortez and the Estate of Estes v. Penn National Security Insurance Company (Penn National) a trial court recently awarded judgment against Penn National for treble damages of $28,949,424.80, for breach of its duty to defend and breach of its duty to settle a claim against its insured driver. A Rule 59 motion for reconsideration is pending. This case could generate caselaw on several important coverage issues.
Penn National insured Kitchen and Lighting Designs Inc. under a commercial auto policy, with liability and UM/UIM limits of $1,000,000. Kitchen and Lighting’s employee (Ortez) was driving an Isuzu box truck that was a covered auto and was involved in a two-vehicle accident in which Ortez’ passenger/co-employee (Estes) was fatally injured. The Estes Estate sued Ortez, Fissaha (the driver of the other vehicle) and Passport (Fissaha’s employer) in Craven County (The Underlying Action). Fissaha and Passport settled the claims against them for $863,000. Relying on exclusions for injury to an employee of the insured or to a co-employee of the insured, Penn National denied coverage and refused to provide a defense to Ortez. In response to the coverage denial, the Estes Estate asserted an uninsured motorist claim under the Penn National policy.
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Constangy, Brooks, Smith and Prophete has added a new office in Raleigh to complement North Carolina offices in Asheville and Winston-Salem. In tandem with its opening, the Raleigh office has welcomed its first partner, Justin Coffey, who worked previously for Ogletree Deakins. Coffey has more than 14 years of experience in immigration law, including serving as Chair of the Board of Directors of the International and Immigration Law Section of the Atlanta Bar Association.
Zachary Underwood has been promoted to Litigation Partner at the Raleigh office of Cordell & Cordell. He holds a bachelor’s degree from the University of Illinois at Springfield and a Juris Doctorate from Wake Forest University.
Jeffrey Tyburski and his staff have joined the Raleigh office of Geosyntec Consultants after previously working for McAdams. “This was an amicable decision between McAdams and Geosyntec,” Tyburski wrote, “recognizing that McAdams Civil Engineering/Land Development environmental needs are better served from a separate closely aligned partner. This will create a win-win situation for both companies.”
Steven Bader has joined the Raleigh office of Cranfill Sumner & Hartzog as an Of Counsel attorney. Bader’s practice focuses on appellate law, and his experience includes arguing cases before the Minnesota Supreme Court and the Minnesota Court of Appeals. He holds a bachelor’s degree, magna cum laude, from Saint Cloud State University, and a Juris Doctorate from Gonzaga University.
Grace Kays has joined the Wilmington office of Cranfill Sumner & Hartzog as an associate attorney, focusing her practice on medical malpractice defense. She holds a bachelor’s degree from the University of North Carolina at Charlotte, cum laude, with a major in criminal justice and a minor in political science, and a Juris Doctorate from Elon University.
Lori Fuller has joined the Technology practice at Smith Anderson in Raleigh. She brings with her a wealth of experience from previous positions, including serving as General Counsel for the North Carolina Department of Information Technology and as the first and leading advisor from the Attorney General’s Office for the State Information Processing Services and Information Technology Services.
Colin J. Tarrant has joined Block, Crouch, Keeter, Behm & Sayed in Wilmington after working previously for Smith Moore Leatherwood and Fox Rothschild. Tarrant’s practice focuses on business and commercial litigation, real estate development, land use, and zoning. He holds a Bachelor of Arts from North Carolina State University and a Juris Doctorate from the New England School of Law.
Megan Cook has joined the Raleigh office of Teague Campbell. She focuses her practice on issues of liability, including motor vehicle negligence and wrongful death. Cook holds a Juris Doctorate from North Carolina Central University School of Law.
Carmelle Alipio joins the Raleigh office of Teague Campbell. Carmelle holds a Juris Doctorate from Emory University, where she was the first woman and the first woman of color to be elected Director in Chief of the Emory Law School Supreme Court Advocacy Program. She also holds a Bachelor of Arts in political science and economics from Fordham University.
Patrick Scott joins the Raleigh office of Teague Campbell after participating in the Teague Campbell Summer Associate Program. He holds a bachelor’s degree in criminal justice from the University of North Carolina at Wilmington and a Juris Doctorate from Campbell University.
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