Case Background
Carlex Glass America, LLC operated a glass manufacturing facility protected by a "Comprehensive All Risk" property insurance policy issued by Sompo America Insurance Company. This type of policy generally covers physical loss or damage to property unless a specific exclusion applies. In 2024, the relationship between the two parties shifted into a legal conflict when Carlex filed a first-party insurance coverage action in the United States District Court for the Middle District of Tennessee.
The litigation moved through the discovery and investigation phases as Sompo raised fourteen affirmative defenses to challenge the claims. Sompo admitted it had used loss consultants to evaluate the situation but maintained that it had already paid what was owed under the policy. The case eventually proceeded to a jury trial to determine if the insurer had breached its contractual obligations.
Cause
The dispute began after a tornado reportedly struck the area where the Carlex facility was located. Carlex alleged that this storm caused direct physical damage to its specialized manufacturing equipment, specifically its float line. The legal action arose because Sompo allegedly failed to provide what Carlex considered full compensation for these losses under the terms of the insurance contract.
Injury
The injuries claimed by Carlex were divided into two main categories of loss. The company reported significant property damage to its float line equipment, which is a critical component of its glass production process. Additionally, Carlex claimed "time element" losses, which typically involve lost business income and extra expenses incurred because the facility could not operate normally following a covered event.
Damages Sought
Carlex sought a judgment to force Sompo to pay for the unreimbursed property damage and the resulting business interruption losses. While the initial complaint did not list a single final dollar amount, the company requested that the Court award damages for breach of contract, provide declaratory relief, and order Sompo to cover all costs of the lawsuit, including attorneys' fees.
Key Arguments and Proceedings
Legal Representation
Plaintiff(s): Carlex Glass America, LLC.
Counsel for Plaintiff(s): Jack R. Dodson III | Geoffrey J. Greeves | Jason W. Callen | Ryan Allan Lee | William T. Vest
Experts for Plaintiff(s): Theodore Woodburn | Michael Morrison
Defendant(s): Sompo America Insurance Company.
Counsel for Defendant(s): Tracey A. Jordan | Alycen A. Moss | Elliot Kerzner | Coryne E. Leyendecker | Thomas G. Tidwell | Andree S. Blumstein | William L. Harbison
Key Arguments or Remarks by Counsel
Carlex’s legal team argued that the tornado directly damaged the factory's float line, triggering a mandatory payout under the "All Risk" policy. They contended that Sompo’s failure to pay the full value of the loss constituted a clear breach of contract.
Sompo’s counsel argued that the manufacturer had not proven that any additional damage beyond what Sompo had already paid was actually caused by the tornado. They also argued that Carlex failed to provide evidence of actual lost sales or a total suspension of business operations to justify the "time element" claims.
Claims
Carlex pursued two primary legal claims. The first was a Breach of Contract claim, alleging Sompo failed to honor its duties to pay for property damage and business losses. The second was a claim for Declaratory Relief, asking the Court to interpret the policy language and confirm that the losses were covered.
Defense
Sompo's defense relied on several strategies, including the argument that Carlex failed to state a claim for which relief could be granted. Sompo also claimed that Carlex did not satisfy "conditions precedent" before suing and failed to mitigate its damages after the storm.
Jury Verdict
The jury returned a verdict on January 29, 2026. They found that Carlex proved by a preponderance of the evidence that Sompo breached the contract regarding property damage to the float line equipment. However, the jury found that Sompo did not breach its obligations regarding the time element or business interruption losses.
Ultimately, the jury awarded Carlex Glass America, LLC $14,400,000 in damages. The Court entered a final judgment in favor of Carlex for this amount on January 30, 2026.
Court documents are available upon request at jurimatic@exlitem.com
