Wis. Federal Judge Says Lexington Must Pay for Courthouse Fire, Sends Bad Faith Issue to Jury

MILWAUKEE, Wis. — Lexington Insurance Co. must reimburse a property insurance fund sums paid for damages caused by a courthouse fire because under state law, the fund’s manager had the sole discretion to determine that the loss was covered, a Wisconsin federal judge has ruled that.

On Oct. 31, Judge J.P. Stadtmueller of the U.S. District Court for the Eastern District of Wisconsin further held that the fund established a question of fact as to whether Lexington denied the claim in bad faith.

In 2013, a fire severely damaged the Milwaukee County Courthouse. The courthouse was covered under a primary …