Missouri court orders insurer to pay $44M

A man won $11 million in a lawsuit against police after his conviction for killing a Missouri newspaper’s sports editor was overturned, but the city’s former insurer resisted paying most of it for almost three years. A Missouri judge this week ordered the company to pay nearly $44 million.

Most of the money would go to Ryan Ferguson, whose legal battle with Minnesota-based St. Paul Fire and Marine Insurance Co. in Missouri’s courts started in 2017, about six weeks after he won a federal lawsuit against six Columbia police officers. Ferguson was convicted in 2004 of killing Columbia Daily Tribune sports editor Kent Heitholt but was released from prison in 2013 after a state appeals court panel concluded that he hadn’t received a fair trial. Ferguson maintained his innocence.

The city insurer paid Ferguson $2.7 million almost immediately after he won his federal lawsuit, and his attorneys expected St. Paul, now a unit of Travelers Insurance, to pay $8 million under its coverage for the officers from 2006 to 2011. But the company argued that it wasn’t on the hook because the actions leading to Ferguson’s arrest and imprisonment occurred before its coverage began.

While Ferguson sought to collect, the officers argued that St. Paul was acting in bad faith, shifting the burden to them as individuals and forcing them to face bankruptcy. Ferguson’s lawyers took up those claims, and Missouri courts concluded that St. Paul was obligated to pay $5.3 million for the time Ferguson was in prison while it covered the officers. It paid in 2020.

But the payment didn’t end the dispute, and in November, a jury concluded that St. Paul had acted in bad faith and engaged in a “vexatious refusal” to pay. Cole County Circuit Judge S. Cotton Walker upheld that finding in his order Monday as he calculated how much money the company would pay — mostly as punishment — under a Missouri law capping such punitive damages.

“It’s a way to send a message to insurance companies that if there’s coverage, they need to pay,” said Kathleen Zellner, whose firm represents Ferguson.

She added: “You can’t just pull the rug out from under people when they’ve paid the premiums.”

The company can appeal the decision. An attorney representing St. Paul did not immediately return a telephone message seeking comment.

Under an agreement between Ferguson and the six officers, they stand to split about $5 million of the $44 million.

The award of nearly $44 million includes $3.2 million to compensate Ferguson and the officers, another $24.2 million in punitive damages, $535,000 for the “vexatious refusal” allegation and interest on all of the damages totaling about $16 million.

— Associated Press

Volunteers readying for holiday clothing charity

The holiday season is six months away, but the nonprofit Coated in Love is already preparing for “3000 Acts of Kindness,” an annual event in December at the Minneapolis Convention Center where people experiencing homelessness can receive food, clothing and access to social services.

On Friday at Dual Citizen Brewing Company in St. Paul, volunteers from 100 Year Manifesto worked together to make 100 blankets in two hours for “3000 Acts of Kindness.” Danielle Igbanugo, founder of Coated in Love, said about 25 people attended the event.

“You can bring your kids, bring your friends and just do good for somebody that you might not ever meet,” Mick White, founder of 100 Year Manifesto said.

Coated in Love is expecting 4,000 guests to attend this year’s “3000 Acts of Kindness.” Their goal is to have 4,000 of each provided item, including coats, mittens and backpacks. Services such as haircuts, Chick-fil-A meals and mental health resources will also be available.

Igbanugo said one of her biggest joys is seeing former guests who have experienced homelessness return to the “3000 Acts of Kindness” event as volunteers.

“It makes me want to cry because I just love that they give back,” Igbanugo said. “They come back and understand that there are people who are in the same situation.”

The organizations are planning on having another blanket-making event in July. Igbanugo said the event information will be posted on Coated in Love’s website.

People can get involved by donating money or signing up on the Coated in Love website to sort donations or volunteer at the event in December.

— Kathryn Kovalenko