California Appeals Court Rejects Lloyd's Bid to Escape the Consequences of Its Bad Faith

LAFAYETTE, Calif., Aug. 5, 2025 /PRNewswire/ - In a published opinion issued on July 21, 2025, California's First District Court of Appeal rejected Lloyd's latest bid to avoid liability for its bad faith, denying Lloyd's motion to dismiss Wing Inflatables' appeal for attorneys' fees as untimely. The Court of Appeal called the decision "critical guidance" on when the deadline to file an appeal begins in civil cases. Lloyd's has already paid the compensatory damages (US $3,094,083) and prejudgment interest (US $1,172,214) awarded by the jury; briefing on the remaining issues is expected to conclude later this year.

The ruling comes as California marine-equipment maker Wing Inflatables, Inc. and several Lloyd's syndicates are heading into parallel appeals following a San Francisco jury's 2024 finding that Lloyd's egregiously mishandled Wing's insurance claim in bad faith. Lloyd's is attempting to challenge the US $15 million punitive damages portion of the US $19,266,297 judgment, while Wing is appealing a post-trial decision denying its request for attorneys' fees under Delaware law. 

"We entered into an insurance partnership with Lloyd's in 2019 in good faith, expecting reliable support when unforeseen challenges arose. Unfortunately, our experience did not meet those expectations. The jury's verdict reflects that gap, and we look forward to the appeals process concluding so the policy benefits can be fully honored," said Andrew Branagh, CEO of the Wing Group.  

Mark C. Goodman of Baker McKenzie, who represents Wing alongside Barry J. Thompson and Michael T.Boardman, added: "The 2024 verdict was the result of the bad faith tactics that Lloyd's employed in handling Wing's insurance claim and the punitive damages were a very important part of trying to get Lloyd's to change its behavior in the future. Unfortunately, Lloyd's has not seemed to have learned any lesson from the message the jury and the trial court sent. We are pleased that the Court of Appeal has rejected Lloyd's efforts to dismiss Wing's appeal and we look forward to confirming the punitive damages award and finally resolving Wing's right to recover its attorneys' fees in this matter."

The underlying dispute began in February 2021, when Wing Inflatables, Inc. filed a claim under its insurance policy. After years of litigation and a four-week trial, jurors found in July 2024 that Lloyd's acted in bad faith in handling Wing's claim. Judgment was entered in August 2024.

Based in California, the Wing Group and its subsidiaries manufacture life jackets, boats, and other safety equipment for recreational customers and for U.S. military branches, including the Coast Guard.

About The Wing Group  

The Wing Group and its companies (Wing Inflatables, Henshaw Inflatables, Patten Company, FabTek Industries, and Mustang Survival) deliver confidence to the world's most demanding marine and aviation users through innovative and high-quality technical solutions – on, over and under the water. The Wing Group is a leader in inflatable boats, life rafts, flotation, dry suits, and other tactical and survival solutions for recreational, commercial, and military customers.

winggroup.com  

SOURCE The Wing Group