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Subcontractor prevails in suit against Allied World Assurance unit

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Miami

A federal appeals court has refused to order a new trial in a case in which a jury ruled against an Allied World Assurance Co. unit and its general contractor policyholder.

Subcontractor A.T.O. Golden Construction Corp. filed a breach of contract lawsuit against Harvey, Louisiana-based Pete Vicari General Contractor LLC and its surety insurer, Allied World Insurance Co., in connection with the construction of two residential towers in Miami, according to Wednesday’s ruling by the 11th U.S. Circuit Court of Appeals in Atlanta in A.T.O. Golden Construction Corp., v. Allied World Insurance Co., Pete Vicari General Contractor, LLC.

After a trial in U.S. District Court in Miami, the jury returned a $75,000 verdict in favor of ATO as to one tower and $50,000 as to the other. After the verdict and post-trial motion, the district court entered a final judgment of $125,000 plus $9,729 in interest in favor of ATO and against Vicari and Allied, the ruling said.

A unanimous three-judge appeals court panel affirmed the judgment and denied the motion for a new trial, rejecting the appellants’ primary contention that ATO “presented no competent or legally sufficient evidence” of damages to support the jury’s verdict.

“This evidence included, for example, some change orders and testimony that adequately established the reasonable value of the work, materials, and services provided by ATO as to each tower,” the ruling said. “Further, in the light most favorable to ATO, the unpaid sums for change orders — without including the overhead and profit in them — exceed the amount of the jury’s verdict as to each tower.”

Attorneys in the case did not respond to a request for comment.

Earlier this week, a federal appeals court upheld a lower court ruling and held that an Allied World Assurance Co. unit was not obligated to compensate a Minnesota tile retailer under its directors and officers liability excess coverage for claims arising out of the policyholder allegedly failing to report related-party transactions.