US Court of Appeals Affirms District Court’s Ruling for Car Dealership in Insurance Dispute

Bailey Glasser is pleased to announce that, on May 15, 2020, the US Court of Appeals for the Fourth Circuit affirmed the decision of the US District Court for the District of Maryland that found Universal Underwriters owed its insured, DARCARS, a defense in a lawsuit brought against them back in 2015. The Court of Appeals upheld a claim that is now valued in excess of $5 million.

The decision of the Fourth Circuit comes after the attorneys at Bailey Glasser obtained summary judgment for their client on the duty to defend, which was followed by a three-day jury trial. The jury awarded full damages to DARCARS in the amount of $4.284 million.

"We are gratified that the US Court of Appeals affirmed the ruling from the District Court,” said Bailey Glasser partner Rebecca Pomeroy. “From the beginning, we fought on behalf of our clients to ensure that Universal Underwriters, a subsidiary of Zurich Insurance Company, fulfilled their obligation to our client to defend them in the underlying lawsuit. We hope this decision will finally bring this case to its rightful conclusion.”

John Darvish, President and CEO, of DARCARS said of the result, “We could not be happier with the decision of the Court of Appeals and are grateful for the excellent work of Becky and her team.”

Additional team members included Bailey Glasser attorneys Benjamin L. Bailey, Brian A. Glasser, Cary Joshi, and Raymond S. Franks II.