Legal proceedings are intensifying for Brakebush Brothers, a poultry producer embroiled in a lawsuit against Lloyd’s of London, their insurer. Accused of insurance fraud, Brakebush Brothers allegedly misrepresented the extent of fire damage at their Mocksville, N.C., facility in 2017, strategically targeting policies to secure excess funds for facility improvements and expansion, according to court documents.
The insurer claims Brakebush Brothers withheld crucial information by not disclosing 112 pages of hand-written notes detailing the fire loss and subsequent reconstruction. Lloyd’s of London is now seeking sanctions against the poultry producer for this omission, alongside a demand for Brakebush Brothers to cover legal fees.
Joining the legal fray is House of Raeford Farms, a co-plaintiff in the case, as the plant was in the process of being sold to Brakebush at the time of the fire. The court has already ruled against Brakebush’s motion for a summary judgment, signaling that the case will progress to trial.
The crux of the dispute revolves around the extent of fire damage and associated costs. Brakebush Brothers asserts that additional costs were incurred due to ongoing renovations during the fire. However, insurers argue that the poultry producer added non-fire-related items to the claim.
With the case slated for trial, both parties are set to present evidence and arguments as the court deliberates the insurance fraud allegations and related issues.
