After a marathon dispute that began in February of 2021, a San Francisco jury found that the Lloyd’s Syndicates acted outrageously and in bad faith in handling Wing Inflatables, Inc.’s insurance claim and returned a significant verdict against Lloyd’s of London in July 2024 that included $3,094,083 in compensatory damages, pre judgment interest of $1,172,214 and $15,000,000 in punitive damages for a total award of $19,266,297.  Judgment on the jury verdict was entered in August 2024. Wing was represented at trial by Mark C. Goodman, Barry J. Thompson and Michael T. Boardman of Baker McKenzie LLP.

Lloyd’s subsequently paid the prejudgment interest and compensatory damages part of the judgment but appealed the $15,000,000 punitive damages award.  For its part, the Wing Group appealed a post-trial decision by the San Francisco court denying an award of attorneys’ feesto Wing. On appeal, Lloyd’s moved to dismiss the Wing Group’s appeal as untimely, but the California Court of Appeal denied that motion in a decision that has been certified for publication to provide guidance to other litigants in California with respect when the time to file an appeal begins to run.  Accordingly, both appeals remain pending.

“We entered into an insurance relationship in good faith with Lloyd’s in 2019, expecting a business partnership that would protect us against unwanted surprises that might arise.  Those expectations were never met.  Lloyd’s misconduct, obfuscation, bullying, ignoring, belittling, and overall approach toward Wing, when we were in a time of need, is so disappointing and unfortunate.  Every negative stereotype associated with the insurance industry was on grand display.  In our view, this could be a case study in what not to do as an insurance company.  I wish that this outcome would serve to change their behavior. Unfortunately, it appears it will not,” said Andrew Branagh, CEO of the Wing Group.

“Unlike many small businesses in its position, Wing had the fortitude to push back on Lloyd’s bad faith tactics and fight hard to obtain theinsurance policy benefits to which it was obviously entitled from the outset,” said Mark Goodman, Wing’s lead counsel. “It is unfortunate that Wing was required to expend so many resources to get what it deserved but we are obviously pleased that the jury saw Lloyd’s conduct for what it was and we look forward to Lloyd’s finally paying what it owes, both by satisfying the jury’s award and reimbursing Wing for the attorneys’ fees that it was forced to incur as a result of Lloyd’s bad faith conduct.”

The Wing Group is a California-based small business operating in the marine industry. The group and its companies manufacture life jackets, boats, and other safety equipment for both recreational users and U.S. military branches, including the Coast Guard.

Rheinmetall has founded a comprehensive local production network in Romania, which includes both its own companies in the country and new partnerships with Romanian companies. The technology corporation is thereby expanding both, its presence in Romania and its status as a leading manufacturer and service provider for the Romanian armed forces. The provision of advanced turnkey solutions for the production of infantry fighting vehicles, ammunition and powder, as well as state-of-the-art training services, ought to strengthen the Romanian defence industry in the long term. The network includes Rheinmetall Automecanica, further local Rheinmetall activities as well as a new centre of excellence for training and further education.

A cornerstone of Rheinmetall’s localisation efforts is the cooperation with key Romanian companies, including among others Uzina Automecanica Moreni, Interactive Software SRL and MarcTel-SIT. These partnerships will promote local procurement and assembly processes, and will foster the integration of Romanian expertise into the production chain.

The initiative focuses on local production of the Lynx infantry fighting vehicle at Rheinmetall Automecanica, with a robust supply chain and a reduced dependency on external suppliers. Rheinmetall Munitions Romania will manufacture medium-calibre ammunition for infantry fighting vehicles and air defence, while Victoria Explosive Powder Factory will produce the propellants, for which Rheinmetall is providing expertise and technology for a propylene plant. Local service facilities will be responsible for the ongoing maintenance and support for military equipment, thus always ensuring operational readiness.

The Rheinmetall Excellence Centre in Romania is to ensure the transfer of critical know-how to the local workforce. Equipped with cutting-edge simulators and comprehensive training programmes, the centre will provide Romanian employees with practical experience and technical expertise in the operation, maintenance and development of advanced defence technologies, particularly in relation to the Lynx infantry fighting vehicle.

Rheinmetall’s investment in local production will make a significant contribution to the Romanian economy by creating hundreds of jobs in various sectors, including manufacturing, engineering and technical services. Cooperation with Romanian companies will also boost local supply chains, create additional business opportunities and promote industrial growth.

With this strategic initiative, Rheinmetall Automecanica is not only improving Romania’s defence capabilities, but also laying the foundation for a sustainable and independent defence industry. By integrating advanced technologies and training, Rheinmetall is ensuring the future viability of Romania’s defence sector while further expanding its own global production network.