City of Jennings Could Pay Millions in Lawsuit Without Insurance Coverage
Date Posted: May 30, 2024
Posted In: Discussion, Projects,
From First Alert 4: A city in north St. Louis County may be forced to pay nearly $2 million in damages for breaching a contract.
In February, Hankins Construction filed a lawsuit against the City of Jennings for $1.7 million plus interest in damages over a canceled city hall center.
According to emails obtained by the First Alert 4, it appears the city didn’t notify it’s insurance agencies about the lawsuit. Meaning if the city loses in court, the City of Jennings may be required to pay the damages without insurance that would cover a large portion of the damages.
On May 7, 2024, Jennings council member Terry Wilson sent the following email to the city’s insurance company:
Dear Mr. McCray,
I am writing to verify the status of an insurance claim related to a lawsuit filed by Hankins Construction against the City of Jennings. Our City Attorney has informed us that our insurance provider, MOPERM, has been notified and a claim was filed several months ago.
Could you please confirm whether this claim has indeed been processed, and provide any pertinent details or updates regarding its status? Additionally, if there are any further actions required from our side to facilitate this process, please let us know.
Thank you for your assistance and I look forward to your prompt response.
Best regards,
Councilman Wilson City of Jennings
The insurance company, MoPerm responded with the following:
Please be advised that City’s insurance agency, The Daniel and Henry Co., informed MOPERM on November 14, 2023 that Hankins Construction was making a claim against the City of Jennings relating to construction of a new city hall and community center. A denial of coverage letter was sent to the City Clerk, Teresa Hauser, explaining coverage for the contract dispute was not covered under MOPERM’s memorandum of coverage. A response from the City was not received.
At that time, a lawsuit had not been filed against the City by Hankins Construction. MOPERM has never been notified by any person acting on behalf of the City of Jennings that such a lawsuit has been filed. Until I received your correspondence this morning, MOPERM had no indication or notification that such a lawsuit had been filed.