MARCH 17, 2015
Opry Mills Mall Limited Partnership and Simon Property Group
LP are entitled to $200 million in insurance coverage for flood damage to
Nashville's Opry Mills mall, a Tennessee judge has ruled, granting the
companies' bid for summary judgment in a dispute with Zurich American Insurance
Co., Arch Insurance Co. and a slew of other insurers.
Chancellor Russell T. Perkins rejected the insurers' contention that a $50 million sublimit applies to the plaintiffs' claim because the mall is located in a "high hazard flood zone."
Chancellor Russell T. Perkins rejected the insurers' contention that a $50 million sublimit applies to the plaintiffs' claim because the mall is located in a "high hazard flood zone."
//------------------------------//
Tennessee’s Opry Mills to Reopen; Suit Against Flood Insurers Goes On
April 12, 2011
Nearly one year after a historic flood ravaged Nashville and
submerged the popular Opry Mill shopping mall, the mall said it will reopen in
2012.
This will happen despite the fact the property owner, Simon
Property, is still in court fighting with insurers over some $150 million to
$200 million in insurance money it said it needed to rebuild.
Opry Mills said it has been able to reach an agreement with
its lenders, Helaba Bank and Nord/LB, to finance the rebuilding of the mall.
Meanwhile, Opry Mills said it will continue its litigation
against its insurers to get them to cover the flood losses.
Opry Mills was damaged by high flood waters in May 2010.
Losses to the property are currently estimated to exceed $200 million.
Simon Property has received $50 million form insurers but it
claims it is owed up to $200 million more for flood losses under excess
insurance policies it purchased with the help of its broker, Aon Risk Services.
A group of some 16 insurers assumed varying percentages of
the risk in excess layers of $50 million to $100 million and $100 million to
$200 million. The list of insurers includes Sompo Japan, Zurich America,
Lloyd’s of London, Ironshore, Lexington, Liberty Mutual and other well-known
names.
Last September, Simon Property and Opry Mills, along with their
lender Helaba, filed a lawsuit in the Chancery Court of Davidson County against
the insurers and against insurance broker Aon.
The insurers have said Opry Mills is subject to only $50
million because that is the limit in the insurance package for properties
located in 100-year high hazard flood zones.
But Simon insists that Opry Mills is not in a high hazard
zone so the limitation does not apply. It claims that Aon issued numerous
certificates of insurance confirming that the Opry Mills property was covered
up to the $200 million limit. It also claims Aon affirmed this view in an email
after the May flooding.
Opry Mills claims that insurers’ refusal to pay to the $200
million limits is contrary to the policy language and contrary to
representations made by its broker, Aon. The mall owner is seeking the $200
million insurance payout plus triple damages under the Tennessee Consumer
Protection Act.