Eleventh Circuit Affirms $24 Million Verdict against Executive Risk

Pope McGlamry, a Georgia law firm specializing in civil litigation, announced today that the Eleventh Circuit had affirmed a verdict in excess of $24 million obtained on behalf of Pope McGlamry’s client, AFC Enterprises, Inc. (NASDAQ: AFCE).The lawsuit was originally brought by Executive Risk Indemnity, Inc. on August 27, 2004.  Executive Risk claimed that it had no coverage obligation to AFC because AFC had allegedly made material misstatements or omissions in connection with the renewal of its 2003 directors and officers liability insurance policies.  AFC vigorously denied these allegations, and contended in a counterclaim that Executive Risk breached its policy of insurance by not covering various shareholders and derivative lawsuits filed against AFC.

Pope McGlamry tried the lawsuit before the Honorable Charles A. Pannell, Jr. in the United States District Court for the Northern District of Georgia.  On September 1, 2007, a judgment was entered in favor of Pope McGlamry’s client in the amount of $24,295,890.40.  In a per curiam opinion issued on May 28, 2008, the Eleventh Circuit panel unanimously affirmed the verdict.  Including post-judgment interest, the value of the judgment entered in AFC’s favor is now in excess of $25 million.

AFC was represented on appeal by C. Neal Pope, Alan G. Snipes, and David C. Rayfield of Pope McGlamry.  C. Neal Pope, lead counsel for AFC, stated, “We are pleased with the decision of the Eleventh Circuit Court of Appeals affirming the judgment. We believed all along that AFC was entitled to the full value of its policy of insurance, plus interest, and this ruling achieves that result.”

About Pope McGlamry

Pope McGlamry, a group of Georgia trial attorneys with offices in Atlanta and Columbus, GA, is a recognized leader in the field of civil litigation. The firm specializes in business litigation, insurance litigation, and class actions suits. The firm also specializes in wrongful death and catastrophic injury cases, particularly those involved with product liability or motor carrier liability. The firm has offices in Atlanta and Columbus, Georgia, and maintains a regional and national practice. For additional information, visit www.popemcglamry.com.