Insurance Company’s Calculated Resistance
St. Paul Fire and Marine Insurance Co. deployed a defense strategy that would ultimately backfire spectacularly. The company argued that it bore no responsibility for the remaining $8 million because the police actions that led to Ferguson’s arrest and wrongful imprisonment occurred before its coverage period began.
This technical argument might have seemed reasonable on paper, but it created a devastating domino effect. The six police officers, suddenly faced with the prospect of personal liability for millions of dollars, found themselves staring down potential bankruptcy. The insurance company’s refusal to honor what the officers believed was their rightful coverage left them in financial limbo.
Ferguson’s legal team, led by renowned attorney Kathleen Zellner, recognized the broader implications of the insurance company’s tactics. They took up the officers’ claims, arguing that St. Paul was acting in bad faith by shifting the financial burden to individuals who had paid premiums expecting coverage.
The Missouri court system ultimately sided with Ferguson and the officers, concluding that St. Paul was indeed obligated to pay $5.3 million for the period Ferguson was imprisoned while the company provided coverage for the officers. The company grudgingly paid this amount in 2020, but the legal battle was far from over.
The delayed payment and the company’s resistance tactics had created additional damages and exposed what the courts would later characterize as a pattern of bad faith conduct.
