Judge Orders Insurer to Pay $44M in Missouri Prison Case

Judge Orders Insurer to Pay $44M in Missouri Prison Case

Introduction

A Missouri man who previously won an $11 million federal lawsuit against Columbia police officers after his wrongful conviction has now been awarded nearly $44 million by a Missouri judge.

The decision comes after a lengthy legal dispute with the city’s former insurer, St. Paul Fire and Marine Insurance Co., which resisted full payment for almost three years.

Conviction Overturned After Nearly a Decade in Prison

The man was convicted in 2004 for the murder of the Columbia Daily Tribune’s sports editor. He spent nearly a decade behind bars before being released in 2013, after a Missouri appellate panel ruled that he had not received a fair trial. He consistently maintained his innocence throughout the process.

Initial Settlement and Insurer’s Refusal to Pay

Following his 2017 federal court victory against six Columbia police officers, the city’s insurer paid him $2.7 million. His legal team expected an additional $8 million from St. Paul, which had insured the officers between 2006 and 2011. However, the insurer claimed it was not responsible for the bulk of the payout, arguing the wrongful acts occurred before its policy period began.

Bad Faith Claims and Court Rulings

As the man attempted to collect the judgment, the officers involved claimed St. Paul was acting in bad faith, effectively shifting liability onto them and risking their personal bankruptcies. The man’s attorneys took up those claims, and in 2020, Missouri courts ruled that St. Paul was responsible for $5.3 million for the time he spent in prison while the policy was active. The insurer eventually paid that amount.

Jury Finds Insurer Acted in Bad Faith

The legal battle continued, and in November, a jury found that St. Paul had acted in bad faith and engaged in a “vexatious refusal to pay.” This week, a Cole County Circuit Judge upheld the verdict and finalized the award, including punitive damages under Missouri law designed to penalize insurers for misconduct.

Breakdown of the $44 Million Award

The nearly $44 million judgment includes $3.2 million in compensatory damages to the man and officers, $24.2 million in punitive damages, $535,000 for the vexatious refusal claim, and approximately $16 million in interest. Of the total, the six officers are expected to share around $5 million under an agreement with the victim.

Insurer May Appeal

An attorney for the man emphasized the ruling sends a strong message to insurers about honoring coverage obligations. St. Paul has the option to appeal the decision but has not yet responded to media inquiries.