$112 million verdict; 2020 fire destroys smelting equipment

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Action: Breach of contract

Injuries alleged: Significant business interruption losses

Case name: JW Aluminum Company v. ACE Insurance Company and General Security Indemnity Company of Arizona

Court/case no.: 2:21-CV-01034-BHH

Judge: Bruce H. Hendricks

Amount: $112 million

Date: Nov. 18, 2025

Attorneys: Beattie Ashmore of Greenville and Bill Reid of Reid Collins in Austin, Texas (for the plaintiff)

A fire destroyed aluminum smelting equipment at JW Aluminum in Mount Holly on Aug. 4, 2020. The insurance companies argued the loss was caused by molten material, not the fire, despite the “all risk” policy. The court granted summary judgment to the insurance companies related to their claim that a $10 million cap on damages applied. That decision was reversed by the 4^th U.S. Circuit Court of Appeals. The insurance companies refused to replace the equipment and ultimately denied the claim. The jury found the replacement value of the equipment applied, not the actual cash value as the insurers argued. The replacement value was stipulated to be $32 million. As the fire happened at the beginning of the COVID-19 pandemic, aluminum prices soared and JW Aluminum did not have operational equipment to meet the worldwide demand. The jury valued the business interruption loss at $80,712,037, bringing the total award to over $112 million plus prejudgment interest dating back to 2020.