The Greenbrier and several affiliated organizations filed a suit in the Eastern District of Virginia against an insurance adjuster, Goodman-Gable-Gould Adjusters International (GGG) to prevent further payments and to seek compensatory damages for GGG’s “poor quality” work.
The case revolves around insurance claims for the hotel after the flood 2016 for damages to The Greenbrier Sporting Club, the Oakhurst development, The Greenbrier golf course, the famous Old White TPC Course, the Oakhurst Course, and loss of revenue from the cancellation of the 2016 Greenbrier Classic PGA TOUR tournament, resulting in tens of millions of dollars of damages.
“The Greenbrier is standing up against GGG, the insurance adjusting firm that represented the Greenbrier but was terminated for cause and has nonetheless attempted to participate in any future payments that may result from the efforts of other professionals who replaced them,” reads a press release from The Greenbrier. “In addition to securing a determination that GGG is not entitled to any payment, the goal of the suit is also to prevent GGG from harming others in the future. Just last year, GGG was held accountable for defrauding a Maryland woman out of her homeowner’s insurance after her home burned down. The woman was awarded $5 million in punitive damages because of GGG’s fraudulent and heavy-handed conduct. The Greenbrier will not be bullied by GGG.”
The suit against GGG includes five plaintiffs; The Greenbrier Hotel, Greenbrier Club, Greenbrier Development, Old White, and Oakhurst, an LLC with “three members: James C. Justice II, a citizen of West Virginia; James C. Justice III, a citizen of Virginia; and Jillean L. Justice, a citizen of West Virginia.”
The plaintiffs requested three different actions from the court; a court order declaring that GGG is not entitled to any additional payments, a judgment for compensatory damages for breach of contract, and compensatory damages for breach of implied covenant of good faith, honesty, and fair dealings.
The complaint alleges GGG continues to seek payment from the plaintiffs for services it provided. The plaintiffs claim that GGG was paid for its services up through their dismissal and that it has already been overcompensated for its “poor quality” work.
“The amount currently in dispute between GGG and plaintiffs is $609,515.26,” reads the complaint. “The recoveries obtained by plaintiffs, with the assistance of GGG and others before its termination for cause, albeit with extreme pressure and assistance from plaintiffs, totaled approximately $39 million. This was a completely inadequate result, and GGG received compensation, which constituted an over-payment to GGG. After payment of what was purportedly due to GGG as of that date, $609,515.26 was in dispute between GGG and plaintiffs. … It is plaintiffs’ position that GGG has to date been overcompensated given the poor quality of its work and that GGG is entitled to no portion of the funds.”
A previously dismissed lawsuit in the southern district of West Virginia stated The Greenbrier and its affiliated organizations are owed approximately $75 million in damages in addition to the $39 million currently reported.
According to the civil complaint, GGG failed to meet standards of service by:
• Failing to properly calculate plaintiffs’ business interruption losses, and refusing to correct and revise those calculations despite plaintiffs’ demands that it do so.
• Making little to no effort to advance the progress of the claims adjustment process and failing and refusing to put pressure on the insurers to respond to and settle the claims.
• Failing and refusing to include claims for the ski resort and for the lost home sales in its demands to the insurers.
• Bringing in an engineering company with which, upon information and belief, it had an affiliation, and refusing plaintiffs’ demands that GGG’s chosen engineering firm review and reconsider its estimate to include the value that the historic and architectural landmark status added to the property, and to include the value of the specialty furniture and interior décor that had been damaged or destroyed, as well as the historical and architectural landmark status of The Greenbrier hotel, causing plaintiffs to retain additional consultants to do the work needed to support the architectural and historical value of The Greenbrier hotel, its interior décor and furniture.
• Failing and refusing to include a sufficient claim for the loss of the U.S. Open golf tournament occasioned by the flood.
• Refusing plaintiffs’ demand in September 2017 to file suit against the insurers because of their refusal to negotiate and settle the claims.
• Failing generally in numerous other aspects of its engagement to provide the required completed and capable work expected of it by plaintiffs and failed to meet industry stand
“We hope the Court holds GGG accountable for its poor work and awards funds currently held in escrow to The Greenbrier,” said attorney Richard A. Getty for the plaintiffs. “GGG has a track-record of attempting to take advantage of clients. In this case, their actions were unacceptable to The Greenbrier, the people of White Sulphur Springs, and to the rich history and tradition of the hotel and surrounding properties. GGG acted as if they were dealing with a roadside motel, not the historic and architectural landmark that is The Greenbrier hotel.”
Read more in the Wednesday, August 28, 2019, edition of The West Virginia Daily News.
