Earlier this 12 months, I reported on a hanging jury verdict in opposition to Brotherhood Mutual Insurance coverage Firm in a dispute introduced by Inexperienced Acres Baptist Church in Brotherhood Mutual Hit With $35 Million Punitive Award on Roof Injury Declare. The jury awarded the church practically $5 million in contract damages and a staggering $35 million in punitive damages for alleged dangerous religion. It was the type of resolution that made headlines within the insurance coverage business, because it instructed a robust rebuke of Brotherhood’s claims dealing with.
However trials usually are not the tip of the story. Put up-trial motions and judicial overview can considerably change the end result, and that’s exactly what has occurred right here.
Following the decision, Brotherhood moved for judgment as a matter of legislation. The federal trial courtroom fastidiously reviewed the proof offered to the jury and concluded that Inexperienced Acres had not met its burden of proof. 1 The courtroom emphasised that substitute value advantages below the coverage weren’t owed as a result of the church had not truly repaired or changed sure properties, and that no competent proof was supplied relating to precise money worth for these gadgets. Within the absence of such proof, the courtroom decided there was no evidentiary foundation to help both the contract damages or the punitive damages the jury awarded.
I’ve lately and repeatedly famous the necessity for policyholders to current precise money worth proof in lots of jurisdictions. I counsel that property loss practitioners representing policyholders learn When Proof of Worth Sinks a Declare: Precise Money Worth Issues.
The decide due to this fact put aside the decision in its entirety, coming into a “take-nothing” judgment in Brotherhood’s favor. The courtroom additionally conditionally granted Brotherhood’s request for a brand new trial, ought to its ruling later be overturned on enchantment.
Inexperienced Acres sought to change or amend that call, however the courtroom denied the movement. 2 In its current order, the courtroom defined that the plaintiffs had not offered new proof, nor had there been any change in governing legislation. As a substitute, the arguments raised merely rehashed positions the courtroom had already thought of and rejected. The underside line is that Brotherhood Mutual is now the winner of this trial.
This case is a reminder to everybody within the insurance coverage and restoration fields that whereas jury verdicts could seize consideration, they continue to be topic to authorized scrutiny. The procedural steps after trial can completely reshape the end result. Policyholder advocates should maintain this in thoughts when assessing litigation technique and managing shopper expectations.
Now, the matter will in all probability be appealed. The trial courtroom decide already anticipated that the matter could be returned for a brand new trial, as famous in his award. I’ll attempt to sustain with future developments of this very attention-grabbing case.
Thought For The Day
“Begin the place you’re. Use what you may have. Do what you possibly can.”
—Arthur Ashe
2 Inexperienced Acres Baptist Church v. Brotherhood Mut. Ins. Co., No. 6:23-CV-556 (E.D. Tex. July 3, 2025).
1 Inexperienced Acres Baptist Church v. Brotherhood Mut. Ins. Co., No. 6:23-CV-556 (E.D. Tex. Sept. 3, 2025).