Joanna Szabo  |  January 21, 2020

Category: Legal News

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California wildfire lawsuitA winery has filed a California wildfire lawsuit against an insurance company and a group of underwriters for refusing to cover millions of dollars in damages from the 2017 fires.

According to the lawsuit, the 2017 California wildfires caused Vintage Wine Estates to suffer $12 million in damages after the smoke tainted their wine.

Vintage Wine Estates said that it had bought all-risk insurance from Lloyd’s London underwriters, a kind of coverage meant to protect you from any kind of risks or perils not specifically excluded from the policy.

Named in the lawsuit are Royal & Sun Alliance Insurance PLC, along with underwriters at Lloyd’s London including Liberty Syndicate 4472, Navigators Syndicate 4472, Brit Syndicate 2987, and Travelers Syndicate 5000. The defendants are referred to collectively throughout the lawsuit as “London Insurers”.

Despite the fact that Vintage Wine Estates was promised broad, all-risk insurance, these underwriters have refused to pay for the damage.

The California wildfire lawsuit claims that “smoke from the wildfires infiltrated the winemaking process, resulting in substantial damage, commonly referred to as ‘smoke taint,’” to their wines.

The lawsuit argues that when Vintage Wine Estates “needed the London Insurers most, they refused to honor their obligations to pay for those losses.”

Wildfires that burned across Northern California in October 2017 spread across tens of thousands of acres, and led to hazardous air quality levels, according to the EPA. This kind of hazardous air quality included high smoke levels and other particulates.

This smoke exposure during and immediately following the first created a perceptible “smoke taint,” the California wildfire lawsuit alleges.

How Much Loss Did the Winery Suffer?

Bottles of wine from Vintage Wine Estates sell anywhere from about $10 to $150 dollars a bottle, but this taint essentially destroyed the wine’s marketability, the company argued, beyond a de minimis salvage value. This resulted in about $12 million in damages, the company claims in their lawsuit, which the London Insurers have since refused to pay, despite their all-risk policy that did not specifically exclude such damages.

Vintage Wine Estates has asked that the London Insurers reconsider their refusal, providing evidence of the loss, but the insurers have maintained their position for more than a year, continuing to refuse to pay for these damages.

The lawsuit was filed alleging breach of contract, along with breach of the covenant of good faith and fair dealing.

If you or your company or your home was affected in any of the recent California wildfires, even if you have already received some compensation from your insurance, including your homeowners insurance, you may be able to receive further compensation. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation. Even if you have already received compensation, you may not have received all the compensation you’re due.

The California Wildfire Lawsuit is Case No. 3:20-cv-00101-KAW, in the U.S. District Court for the Northern District of California.

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If you or a loved one suffered property damage in the Camp Fire, Woolsey Fire, Hill Fire or last year’s Thomas Fire, legal help is available to help you through the claim process with your insurance company.

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This article is not legal advice. It is presented
for informational purposes only.

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