Jennifer Whitworth (Birmingham, AL) (Property) secured a favorable outcome on behalf of Centauri Specialty Insurance Company in a third-party indemnity action filed by its insureds. The Insureds were originally sued by a contractor they hired to repair storm damage after a tree fell on their home. The contractor alleged breach of contract against the Insureds, claiming it was not fully paid for the work performed.
In response, the Insureds filed a third-party complaint against Centauri and Ameris Bank, asserting that they never had control over the insurance proceeds and that if they were liable to the contractor, it was due to the actions of Centauri and/or Ameris Bank. We filed a Motion for Summary Judgment on behalf of Centauri, arguing that the insurer fully discharged its obligations under the policy by issuing payment to the Insureds and their mortgage holder, Ameris Bank.
Just two days before mediation, counsel for the Insureds acknowledged there was no viable defense to Centauri’s Motion and voluntarily dismissed Centauri with prejudice. This result effectively removed Centauri from the litigation and shielded it from further liability.