Contact: Melanie Camellia
Communications Manager
melanie.camellia@mcfarland.wi.gov
608-838-2311
Village Seeks Nearly $1 Million in Compensatory Damages Among Other
Awards
MCFARLAND, Wis. – On Friday, March 15, 2024, the Village of McFarland filed suit in the Dane County Circuit Court against the Hanover Insurance Company, which issued a builder’s risk policy to the Village to cover property damage incurred during the construction of the new McFarland Public Safety Center, located at 6001 Broadhead St.
The Village’s complaint alleges that Hanover is in breach of said policy based on the insurance company’s refusal to pay in full a claim for more than $1,678,000 in remediation costs required after a sinkhole collapsed beneath and adjacent to the north side of the nearly completed building in March 2023. The complaint also alleges that Hanover’s initial denial of the claim and their eventual determination to pay the Village less than $700,000 were made in bad faith, relying on an unreasonable interpretation of the policy’s language which disregards express coverage for damage caused by a sinkhole collapse, and that Hanover intentionally delayed claim settlement, waiting to make any payment on the claim for more than 11 months.
Through this lawsuit, the Village is seeking compensatory damages in the remaining amount of $974,669 and statutorily required interest on both the delayed partial payment and remaining balance, along with punitive damages.
“The Village, through its Board of Trustees, took action to file this lawsuit to ensure the insurance company is held accountable for its obligation to make the community whole for the damages that were incurred,” said Village Administrator Matt Schuenke. “The extra costs to repair the sinkhole were necessary so that the facility would be structurally sound and could be occupied by our public safety services and the public.”
Per Wisconsin statute, Hanover has 45 days from the date summons were issued to
formally respond to the complaint.
