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.
