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Nov 21, 2017

Baker Sterchi Cowden & Rice Obtains Jury Verdict for Insurance Client in Breach of Contract Action

Baker Sterchi Cowden & Rice obtained a verdict in favor of client Western Surety Company on a breach of contract action against T&L Zarda, LLC, Tim Zarda and Lisa Zarda. The case arose out of the Zardas’ request that Western Surety Company issue a development bond guaranteeing the payment of excise taxes to the City of Lenexa. 

When T&L Zarda failed to pay the excise taxes due, the City made a claim on Western Surety’s guarantee.  Western Surety investigated the claim and subsequently settled the City’s claim.  Western Surety brought a breach of contract action against the Zarda parties seeking reimbursement of the amount paid to the City and for its costs and expenses which totaled $309,311.92, including attorneys’ fees and costs.  The Zardas filed suit against Western Surety claiming breach of contract and negligence arising out of the same transaction and sought damages in excess of $172,000.

The jury returned a unanimous verdict in favor of Western Surety Company on its claims and awarded $309,311.92 plus attorney’s fees and costs.  On the Zardas’ claims against Western Surety, the jury found in favor of Western Surety.