Pennsylvania Superior Court Reaffirms $2.9 Million Judgment For Diocese of Greensburg, Awards Sanctions Against Appellate Gallagher Bassett Services, Inc.

Philadelphia, PA (Nov. 12, 2007) - The Pennsylvania Superior Court has affirmed the judgment of the trial court against Gallagher Bassett Services, Inc., which had entered judgment pursuant to the Superior Court's previous decision in the amount of $2,967,684, for the Roman Catholic Diocese of Greensburg, Pennsylvania.  The Superior Court not only affirmed the trial court in all respects, it also imposed fees and costs against Gallagher Bassett.The jury verdict related to the loss of the Queen of Angels School building.  On February 23, 1999, a structural engineer determined that the school's structural integrity had failed.  The Diocese immediately closed the School and provided notice of the loss to Gallagher Bassett, the claims administrator under the Diocese's insurance program.  The lawsuit against Gallagher Bassett alleged that Gallagher Bassett had breached its contract to provide insurance-related services in accordance with its contracts with the Diocese.  After a week-long trial, the jury found that Gallagher Bassett materially breached its contract and awarded $2,431,000 in damages.  Despite the findings of the jury, the trial judge granted judgment in favor of Gallagher Bassett.  In July 2005, the Superior Court reversed and vacated the trial judge's grant of judgment for Gallagher Bassett notwithstanding the verdict, and remanded the case to the trial judge for entry of judgment in favor of the Diocese in the amount of $2,431,000 and calculation of pre-judgment interest.  The Superior Court denied Gallagher Bassett's application for reargument in September 2005 and the Pennsylvania Supreme Court decided not to hear the case in July 2006.On remand to the trial court, Gallagher Bassett tried to reopen a motion for a new trial, have the verdict molded to zero, and/or eliminate any award of prejudgment interest.  The trial court rejected all of those requests and entered judgment against Gallagher Bassett as directed.  Gallagher Bassett then appealed, giving rise to the Superior Court's most recent decision.Anderson Kill & Olick, P.C. represents the Diocese.About Anderson Kill & Olick, P.C.Anderson Kill & Olick, P.C. was founded in 1969 on the principles of integrity, excellence in the practice of law, and straightforward solutions to complex legal issues.  Anderson Kill practices in the areas of Bankruptcy & Restructuring, Corporate & Commercial Litigation, Corporate & Securities, Employment & Labor Law, insurance Recovery, Intellectual Property, Product Liability, Real Estate, Tax, and Trusts & Estates.  The firm's senior attorneys maintain national and international practices from offices in New York, Greenwich, Newark, Philadelphia and Washington, D.C.  Anderson Kill regularly advises and represents religious institutions with regard to insurance issues, and has previously represented a number of Dioceses in the Roman Catholic Church in insurance disputes.For more information, please contact:Carol A. UeckermanCommunications/Marketing Managercueckerman@andersonkill.com(212) 278-1339