A federal jury in Denver has found roofing contractor Skyyguard Corp. committed fraud in an insurance claim tied to a 2018 hailstorm at Calvary Baptist Church and ordered the company to pay $1.2 million in damages. The late May verdict, returned after a one-week civil trial, also found the firm liable for negligent misrepresentation, breach of contract, and intentional interference.
Jurors awarded $1.2 million and required repayment of claim funds; the insurer says it already paid out, a combination that lawyers say could push Skyyguard’s total exposure above $2 million. As first reported by BusinessDen, the lawsuit grew out of post-storm repairs and an appraisal process that sent the claim’s value soaring.
How The Appraisal Fight Heated Up
The dispute started after a June 18, 2018, hailstorm damaged the church’s roof. Skyyguard later pushed a September 23, 2019, estimate of about $1.81 million for a full replacement, even though a subcontractor’s earlier quote came in at roughly $734,755. Federal court filings show the appraisers ultimately issued an award of about $1.43 million in replacement cost value, and that Church Mutual paid more than $1 million on the claim before it moved to claw money back. Those same records show Skyyguard paid a subcontractor about $768,932 for the work, leaving a sizable gap between what was billed and what the job actually cost, according to GovInfo.
Verdict And Company Response
Jurors concluded that Skyyguard and its chosen appraiser steered the appraisal in a way that inflated the claim and interfered with Church Mutual’s contract rights. Skyyguard’s co-founder has said the company disagrees with the verdict and remains confident it will win on appeal, according to Claims Pages.
What’s Next For The Parties…