1021-00003 · Verimark Hospitality Group · Discovery/Plaintiff Propounded

interrogatories-to-pinnacle.docx DOCUMENT Antitrust

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IN THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA

GENERAL JURISDICTION DIVISION

CASE NO.: 2022-CA-031547

VERIMARK HOSPITALITY GROUP INC., a Delaware corporation,

Plaintiff,

IRONCLAD INDEMNITY CORPORATION, a Connecticut corporation; PINNACLE SURPLUS LINES INC., a Texas corporation; MONTCLAIR ASSURANCE COMPANY, a New York corporation; and SOVEREIGN RE LTD., a Bermuda corporation,

Defendants.

PLAINTIFF'S FIRST SET OF INTERROGATORIES TO DEFENDANT PINNACLE SURPLUS LINES INC.

Plaintiff Verimark Hospitality Group Inc. ("VHG"), by and through its undersigned attorneys, Calderwood & Harkness LLP, hereby propounds the following Interrogatories to Defendant Pinnacle Surplus Lines Inc. ("Pinnacle"), pursuant to Rules 1.340 and 1.280 of the Florida Rules of Civil Procedure. These Interrogatories are served on this 5th day of June, 2023.

Pinnacle is required to answer each Interrogatory separately and fully, in writing and under oath, within thirty (30) days of service hereof, as provided by Rule 1.340(a), Florida Rules of Civil Procedure. Each answer shall be made by a corporate representative or officer of Pinnacle who possesses personal knowledge of the facts responsive to the Interrogatory or who has made reasonable inquiry of persons within the organization who possess such knowledge. All answers shall be signed and sworn to under oath by the person making them.

DEFINITIONS

As used in these Interrogatories, the following terms shall have the meanings set forth below:

1. "You," "Your," and "Pinnacle" shall mean Defendant Pinnacle Surplus Lines Inc., and shall include its present and former officers, directors, employees, agents, representatives, attorneys (to the extent not otherwise protected by applicable privilege), adjusters, consultants, and any person or entity acting or purporting to act on behalf of or at the direction of Pinnacle Surplus Lines Inc., including but not limited to its parent company, subsidiaries, affiliates, and divisions.

2. "VHG" or "Plaintiff" shall mean Verimark Hospitality Group Inc., a Delaware corporation, together with its officers, directors, employees, agents, and representatives.

3. "Ironclad" shall mean co-defendant Ironclad Indemnity Corporation, a Connecticut corporation, together with its officers, directors, employees, agents, adjusters, representatives, and attorneys.

4. "Pinnacle Policy" shall mean the first excess insurance policy issued by Pinnacle to VHG bearing Policy Number PSL-XS1-2022-3390, with a policy period of July 1, 2022 through July 1, 2023, providing Fifteen Million Dollars ($15,000,000) in first excess liability coverage above an underlying limit of Twenty-Five Million Dollars ($25,000,000) and subject to a Five Hundred Thousand Dollar ($500,000) deductible, including all endorsements, riders, amendments, binders, cover notes, and declarations pages forming a part thereof.

5. "Ironclad Primary Policy" shall mean the primary all-risk property and business-interruption insurance policy issued by Ironclad Indemnity Corporation to VHG bearing Policy Number IIC-PRP-2022-07541, with a policy period of July 1, 2022 through July 1, 2023, providing Twenty-Five Million Dollars ($25,000,000) in primary coverage, including all endorsements, riders, amendments, binders, cover notes, and declarations pages forming a part thereof.

6. "Hurricane Callista" shall mean the Category 4 hurricane that made landfall in the Lower Florida Keys on September 18, 2022, with sustained winds of approximately 145 miles per hour, as classified by the National Hurricane Center, and the windstorm, storm surge, flooding, and other conditions associated therewith.

7. "Insured Properties" shall mean the three VHG resort properties that sustained damage as a result of Hurricane Callista, specifically: (1) Verimark Grand Key Resort, located at Mile Marker 48, Marathon, Florida 33050; (2) Verimark Harborview Hotel & Conference Center, located at 1400 Estero Boulevard, Fort Myers Beach, Florida 33931; and (3) Verimark Sunset Shores, located at 7200 Gulf Boulevard, St. Pete Beach, Florida 33706.

8. "Claim" shall mean VHG's claim for approximately Sixty Million Dollars ($60,000,000) in business-interruption losses arising from Hurricane Callista, as submitted to Pinnacle and the other Defendants in this action, including all supplemental claims, proofs of loss, damage estimates, and supporting documentation submitted in connection therewith.

9. "Document" or "Documents" shall be construed as broadly as permitted under the Florida Rules of Civil Procedure and shall include, without limitation, all writings, drawings, graphs, charts, photographs, audio recordings, video recordings, electronically stored information (including emails, text messages, instant messages, voicemails, social media posts and communications, metadata, databases, and data stored in any electronic format), correspondence, memoranda, notes, diaries, calendars, reports, studies, analyses, summaries, meeting minutes, agendas, presentations, spreadsheets, financial records, accounting records, invoices, receipts, contracts, agreements, policies, endorsements, binders, cover notes, underwriting files, claims files, loss runs, and communications of every kind and description, whether in paper, electronic, or any other form, including drafts and copies that differ in any respect from the original.

10. "Communication" or "Communications" shall mean every oral, written, or electronic transmission or exchange of information, ideas, facts, or opinions between two or more persons, by any means whatsoever, including but not limited to face-to-face conversations, telephone calls, video conferences, letters, facsimiles, emails, text messages, instant messages, social media messages, and any other method of conveying information.

11. "Person" or "Persons" shall mean any natural person, corporation, limited liability company, partnership, joint venture, association, trust, governmental body or agency, or other legal entity.

12. "Identify" (as to a person) shall mean to state the person's full legal name, title or position, current employer or organizational affiliation, current business address, current telephone number, and, if the person is a former employee of Pinnacle or any affiliated entity, the dates of employment and last known address and telephone number.

13. "Identify" (as to a document) shall mean to state the date of the document, the name and title of the author or creator, the names and titles of all recipients (including those copied), a description of the subject matter of the document, the type of document (e.g., letter, email, memorandum, report), and the present location or custodian of the document, or, if the document has been destroyed or is no longer in existence, the date, manner, and reason for its destruction or loss.

14. "Follow form" shall mean any provision in the Pinnacle Policy that incorporates, references, adopts, or defers to the terms, conditions, definitions, exclusions, limitations, or coverage provisions of the Ironclad Primary Policy, whether by express incorporation, by reference, by endorsement, or by operation of any "follow form" or similar clause contained in the Pinnacle Policy.

15. "Tidewater" shall mean Tidewater Risk Advisors LLC, VHG's insurance broker of record, with its principal office located at 2600 S. Bayshore Drive, Suite 800, Miami, Florida 33133, including its principals, employees, agents, and representatives, including without limitation Franklin Orde.

16. "Arbor Claims" shall mean Arbor Claims Services LLC, the independent adjusting firm retained by Ironclad in connection with VHG's Hurricane Callista Claim, including its principals, employees, agents, adjusters, and representatives.

INSTRUCTIONS

The following instructions apply to each Interrogatory set forth below:

1. Each Interrogatory shall be answered separately and fully in accordance with Rule 1.340, Florida Rules of Civil Procedure. Pinnacle shall provide all information within its possession, custody, or control, or that is otherwise available to it through reasonable inquiry of its officers, directors, employees, agents, representatives, adjusters, consultants, attorneys (to the extent not protected by applicable privilege), and any other persons acting on its behalf.

2. If any Interrogatory cannot be answered in full after the exercise of due diligence and reasonable inquiry, Pinnacle shall answer to the fullest extent possible, specify the portion of the Interrogatory that cannot be answered, state the reason for the inability to provide a complete answer, and describe the efforts undertaken to obtain the requested information.

3. If Pinnacle objects to any Interrogatory or any part thereof, Pinnacle shall state the objection with specificity, identify the legal basis for the objection, and, notwithstanding the objection, answer the Interrogatory to the extent it is not subject to the stated objection. A general or blanket objection, without more, shall not be deemed a valid objection.

4. These Interrogatories are continuing in nature pursuant to Rule 1.280(e), Florida Rules of Civil Procedure. Pinnacle is required to supplement, amend, or correct its answers promptly upon obtaining additional or different information responsive to any Interrogatory.

5. Where an Interrogatory requests identification of a document, Pinnacle may, in lieu of providing the detailed identification information requested, specify the document by Bates number or other identifying designation and produce the document for inspection and copying pursuant to Rule 1.340(c), Florida Rules of Civil Procedure, provided that such production is made within the time period for answering these Interrogatories.

6. If any information responsive to any Interrogatory is withheld on the basis of the attorney-client privilege, the work-product doctrine, or any other applicable privilege or protection, Pinnacle shall provide a privilege log identifying for each item withheld: (a) the privilege or protection asserted; (b) the nature of the information or document withheld (e.g., memorandum, email, letter); (c) the date of the communication or document; (d) the author or speaker and all recipients, addressees, or persons present; (e) the general subject matter of the communication or document, described in sufficient detail to permit the Court to adjudicate the validity of the privilege claim; and (f) the basis for the claim that the privilege or protection applies.

7. If Pinnacle contends that any Interrogatory is vague, ambiguous, overly broad, or unduly burdensome, Pinnacle shall state its interpretation of the Interrogatory and respond accordingly, in addition to stating its specific objection.

INTERROGATORIES

INTERROGATORY NO. 1: Corporate Information and Organizational Structure

State Pinnacle's full legal name, state of domicile, date of incorporation, principal office address, and all other office addresses. Identify each state in which Pinnacle is licensed, authorized, or approved to transact insurance business, and for each such state, specify whether Pinnacle operates as an admitted carrier or as a surplus lines insurer. State Pinnacle's NAIC number, if applicable, or its surplus lines identification number(s). Identify Pinnacle's parent company or holding company, if any, and describe the corporate relationship (including the percentage of ownership interest held). Identify all affiliated entities, subsidiaries, or divisions that were involved in any way in the underwriting, issuance, marketing, distribution, administration, claims handling, or reinsurance of the Pinnacle Policy, and describe the role of each such entity.

INTERROGATORY NO. 2: Identification of Persons with Knowledge

Identify each person known to Pinnacle, or known to Pinnacle through reasonable inquiry, who has knowledge of facts relevant to VHG's Claim under the Pinnacle Policy, or to any defense or affirmative defense asserted by Pinnacle in this action, including but not limited to persons with knowledge of: (a) the underwriting, negotiation, issuance, or placement of the Pinnacle Policy; (b) the claims-handling process for VHG's Hurricane Callista Claim, including but not limited to receipt of notice of loss, investigation, evaluation, reserving, and determination of coverage; (c) Pinnacle's decision, communicated on or about February 10, 2023, to follow or adopt Ironclad's coverage denial dated February 3, 2023; (d) any communications between Pinnacle and any co-defendant in this action, including Ironclad Indemnity Corporation, Montclair Assurance Company, and Sovereign Re Ltd., regarding VHG's Claim; (e) any communications between Pinnacle and Tidewater Risk Advisors LLC, including Franklin Orde, regarding VHG's Claim or the Pinnacle Policy; and (f) any communications between Pinnacle and Arbor Claims Services LLC regarding VHG's Claim. For each person identified, state their full name, title or position, current employer or organizational affiliation, business address, telephone number, and a description of the subject matter of their knowledge.

INTERROGATORY NO. 3: Follow-Form Provisions — Scope and Application

Describe in detail every provision of the Pinnacle Policy (Policy No. PSL-XS1-2022-3390) that incorporates, references, adopts, defers to, or otherwise follows the terms, conditions, definitions, exclusions, limitations, or coverage grants of the Ironclad Primary Policy (Policy No. IIC-PRP-2022-07541), whether by express incorporation, by reference, by endorsement, or by operation of any "follow form," "same terms and conditions," or similar clause. For each such provision identified:

(a) State the specific section, article, endorsement, or page of the Pinnacle Policy in which the provision appears;

(b) State whether Pinnacle contends that the Pinnacle Policy follows form to the Ironclad Primary Policy in all respects or only in specified respects, and if only in specified respects, identify each respect in which the Pinnacle Policy follows form and each respect in which it does not;

(c) State whether Pinnacle contends that any term, condition, definition, exclusion, or limitation of the Pinnacle Policy differs from, modifies, restricts, expands, or supersedes the corresponding term, condition, definition, exclusion, or limitation of the Ironclad Primary Policy, and if so, identify each such difference with specificity and state the effect Pinnacle contends each such difference has on coverage for VHG's Claim;

(d) State Pinnacle's position as to whether the follow-form provisions of the Pinnacle Policy incorporate the named-windstorm sub-limit provisions, if any, of the Ironclad Primary Policy;

(e) State Pinnacle's position as to whether the follow-form provisions of the Pinnacle Policy incorporate the flood exclusion provisions, if any, of the Ironclad Primary Policy;

(f) State Pinnacle's position as to whether the follow-form provisions of the Pinnacle Policy incorporate the anti-concurrent causation clause, if any, of the Ironclad Primary Policy; and

(g) State Pinnacle's position as to whether the follow-form provisions of the Pinnacle Policy incorporate the period of restoration definition of the Ironclad Primary Policy.

INTERROGATORY NO. 4: Named Windstorm Sub-Limit — Pinnacle's Position

State whether the Pinnacle Policy contains a named-windstorm sub-limit or any other limitation, sub-limit, cap, or restriction on coverage for property damage or business-interruption losses caused by or arising out of named windstorms, hurricanes, tropical storms, or similar weather events. If Pinnacle contends that a named-windstorm sub-limit or similar limitation applies to VHG's Claim under the Pinnacle Policy, whether independently stated or incorporated by reference to the Ironclad Primary Policy, provide the following information:

(a) Identify the specific policy provision(s), endorsement(s), or clause(s) imposing such sub-limit or limitation, by section, article, endorsement number, and page;

(b) State the dollar amount of the sub-limit or limitation;

(c) State whether the sub-limit or limitation is independently stated in the Pinnacle Policy or is incorporated solely by reference to the Ironclad Primary Policy;

(d) If incorporated by reference, identify the specific provision of the Ironclad Primary Policy that Pinnacle contends is incorporated and state the mechanism of incorporation (i.e., the specific follow-form clause or endorsement in the Pinnacle Policy through which incorporation occurs);

(e) State Pinnacle's position as to whether the Fifteen Million Dollar ($15,000,000) named-windstorm sub-limit contained in prior policy periods of the Ironclad Primary Policy was deleted, removed, or modified during the July 2022 renewal, and if Pinnacle disputes that such deletion occurred, state all facts, documents, and communications supporting Pinnacle's position;

(f) If Pinnacle contends that the named-windstorm sub-limit was not deleted at the July 2022 renewal, state whether and how the retention or continuation of the sub-limit was communicated to Pinnacle during the underwriting or placement of the Pinnacle Policy;

(g) Identify all documents and communications reviewed, considered, or relied upon by Pinnacle in reaching its position regarding the applicability of any named-windstorm sub-limit to VHG's Claim; and

(h) Identify all persons who participated in the analysis or determination of Pinnacle's position regarding the named-windstorm sub-limit.

INTERROGATORY NO. 5: Basis for Following Ironclad's Denial

Describe in detail the factual and legal basis for Pinnacle's decision, communicated to VHG on or about February 10, 2023, to follow, adopt, or adhere to Ironclad Indemnity Corporation's formal denial of coverage for VHG's Hurricane Callista Claim, which denial was issued by Ironclad on February 3, 2023. In your response, state the following:

(a) Identify by name, title, and position each person at Pinnacle, or acting on behalf of Pinnacle, who made, participated in, reviewed, approved, or was consulted regarding the decision to follow Ironclad's denial;

(b) State the date or dates on which the decision was made, reviewed, and approved, and describe the internal decision-making process, including any committee review, management approval, or escalation procedures that were followed;

(c) Describe in detail what analysis, if any, Pinnacle independently conducted of VHG's Claim before adopting or following Ironclad's denial, including any independent review of the Pinnacle Policy terms, the underlying loss documentation, the Ironclad Primary Policy terms, and the facts and circumstances of VHG's Hurricane Callista losses;

(d) State whether Pinnacle relied solely or primarily on Ironclad's stated grounds for denial, or whether Pinnacle conducted any independent investigation, coverage analysis, or factual inquiry separate and apart from Ironclad's analysis, and if so, describe the scope and findings of any such independent analysis;

(e) State whether Pinnacle sought, obtained, or received any independent legal advice regarding VHG's Claim or the coverage available under the Pinnacle Policy, and if so, identify the attorney or law firm providing such advice, the date(s) on which advice was sought and received, and the subject matter of such advice (to the extent not protected by applicable privilege);

(f) State whether Pinnacle's denial of VHG's Claim was based on identical grounds as those stated in Ironclad's February 3, 2023 denial letter (i.e., the named-windstorm sub-limit, the period of restoration, the concurrent causation/flood exclusion, and the alleged failure to mitigate), or whether Pinnacle's denial was based on different, additional, or fewer grounds, and if different or additional, identify each such ground with specificity; and

(g) Identify all documents, reports, analyses, memoranda, and communications created, reviewed, or relied upon by Pinnacle in connection with its decision to follow Ironclad's denial.

INTERROGATORY NO. 6: Independent Investigation and Claims Handling

Describe all steps Pinnacle took to independently investigate, evaluate, adjust, or otherwise handle VHG's Hurricane Callista business-interruption Claim, separate and apart from any investigation, adjustment, or evaluation conducted by Ironclad Indemnity Corporation, Arbor Claims Services LLC, or any other co-defendant. In your response, include the following:

(a) State the dates of any inspections, site visits, or surveys of any of the three Insured Properties conducted by Pinnacle or any person acting on its behalf, and for each, identify the person(s) who conducted the inspection, the property inspected, and the findings or observations made;

(b) Identify any adjusters, engineers, forensic accountants, building consultants, meteorologists, or other consultants retained or engaged by Pinnacle in connection with VHG's Claim, and for each, state the person's name, firm, qualifications, the scope of the engagement, the date of retention, and the substance of any reports, opinions, or findings provided;

(c) Identify all documents reviewed by Pinnacle in evaluating VHG's Claim, including but not limited to VHG's proof of loss, financial records, tax returns, revenue data, occupancy reports, repair estimates, engineering reports, and any documentation submitted by VHG, Tidewater, or Arbor Claims;

(d) State whether Pinnacle obtained or prepared any independent coverage opinion, coverage analysis, or coverage memorandum regarding VHG's Claim, and if so, identify the date, author, and subject matter of each such opinion, analysis, or memorandum (to the extent not protected by applicable privilege);

(e) Describe the timeline of Pinnacle's claims-handling activities from the date of first notice of VHG's Claim through the date of Pinnacle's denial on or about February 10, 2023, including all key dates, actions taken, and decisions made; and

(f) State whether Pinnacle's claims-handling procedures required any independent evaluation of an excess claim before adopting or following a primary carrier's coverage determination, and if so, describe such procedures and state whether they were followed in connection with VHG's Claim.

INTERROGATORY NO. 7: Communications with Ironclad Regarding VHG's Claim

Describe all communications between Pinnacle and Ironclad Indemnity Corporation (including their respective employees, agents, adjusters, consultants, and counsel) regarding VHG's Hurricane Callista Claim, from the date of Hurricane Callista (September 18, 2022) through the present. For each communication, state:

(a) The date and approximate time of the communication;

(b) The names, titles, and organizational affiliations of all participants in or recipients of the communication;

(c) The mode of communication (i.e., in-person meeting, telephone call, video conference, email, letter, facsimile, text message, or other);

(d) The substance and subject matter of the communication, described with sufficient detail to permit understanding of the topics discussed and the positions or information exchanged; and

(e) Whether any document was created, transmitted, or referenced in connection with the communication, and if so, identify each such document.

Without limiting the generality of the foregoing, this Interrogatory specifically encompasses communications regarding: (i) notice of VHG's Claim; (ii) Ironclad's reservation of rights letter dated October 12, 2022; (iii) Ironclad's investigation and adjustment of VHG's Claim, including any reports or findings shared by Ironclad or Arbor Claims with Pinnacle; (iv) Ironclad's formal denial of coverage dated February 3, 2023; (v) Pinnacle's decision to follow Ironclad's denial, communicated on or about February 10, 2023; (vi) any joint defense strategy, coordination of litigation positions, or sharing of legal analysis between Pinnacle and Ironclad; (vii) any discussions regarding settlement, mediation, or resolution of VHG's Claim; and (viii) any discussions regarding the allocation of defense costs or indemnity obligations among the defendants.

INTERROGATORY NO. 8: Communications with Other Excess Carriers

Describe all communications between Pinnacle and co-defendants Montclair Assurance Company and/or Sovereign Re Ltd. (including their respective employees, agents, adjusters, consultants, and counsel, including attorneys at Delvecchio & Kraus LLP) regarding VHG's Hurricane Callista Claim, from the date of Hurricane Callista (September 18, 2022) through the present. For each communication, state:

(a) The date and approximate time of the communication;

(b) The names, titles, and organizational affiliations of all participants in or recipients of the communication;

(c) The mode of communication (i.e., in-person meeting, telephone call, video conference, email, letter, facsimile, text message, or other);

(d) The substance and subject matter of the communication; and

(e) Whether any document was created, transmitted, or referenced in connection with the communication, and if so, identify each such document.

INTERROGATORY NO. 9: Underwriting of the Pinnacle Policy

Describe in detail the underwriting process for the Pinnacle Policy (Policy No. PSL-XS1-2022-3390), from initial submission through binding and issuance. In your response, provide the following:

(a) Identify every person at Pinnacle, or acting on behalf of Pinnacle, who was involved in underwriting, reviewing, quoting, approving, binding, or issuing the Pinnacle Policy, including each such person's name, title, and role in the underwriting process;

(b) Describe all information, documents, submissions, applications, loss runs, statements of values, engineering reports, catastrophe model outputs, or other materials reviewed by Pinnacle in underwriting the Pinnacle Policy, including but not limited to any submissions received from Tidewater Risk Advisors LLC, VHG, or any other broker, agent, or intermediary;

(c) State the annual premium charged by Pinnacle for the Pinnacle Policy. VHG's records reflect a premium of Four Hundred Ten Thousand Dollars ($410,000) — confirm this amount or state the correct premium;

(d) Describe the methodology used to calculate the premium, including any rating factors, loss models, catastrophe models, experience modification factors, or other actuarial or underwriting factors considered, and specifically address whether and how any of the following factors were taken into account in the premium calculation: (i) named-windstorm risk and hurricane exposure for the Insured Properties; (ii) Florida coastal property exposure; (iii) the attachment point of Twenty-Five Million Dollars ($25,000,000); (iv) the presence or absence of a named-windstorm sub-limit in the underlying Ironclad Primary Policy; and (v) VHG's claims history;

(e) Identify all communications between Pinnacle and Tidewater Risk Advisors LLC (including Franklin Orde) or any other broker, agent, or intermediary regarding the placement, terms, conditions, and pricing of the Pinnacle Policy's first excess layer, including any negotiations or discussions regarding coverage terms, exclusions, sub-limits, and premium;

(f) State whether Pinnacle received, reviewed, or relied upon a copy of the Ironclad Primary Policy during the underwriting of the Pinnacle Policy, and if so, identify the version or draft of the Ironclad Primary Policy reviewed and the date on which it was received; and

(g) State whether Pinnacle's underwriting of the Pinnacle Policy was conditioned upon, or influenced by, the terms of the Ironclad Primary Policy, including but not limited to the presence or absence of a named-windstorm sub-limit, a flood exclusion, or an anti-concurrent causation clause.

INTERROGATORY NO. 10: Awareness of Windstorm Sub-Limit Deletion at Primary Layer

State whether, at any time before, during, or after the placement of the Pinnacle Policy, or during the handling of VHG's Hurricane Callista Claim, Pinnacle or any person acting on behalf of Pinnacle became aware of any contention, representation, or communication by VHG, Tidewater Risk Advisors LLC, Franklin Orde, or any other person or entity that the Fifteen Million Dollar ($15,000,000) named-windstorm sub-limit contained in the Ironclad Primary Policy had been deleted, removed, modified, or otherwise changed during the July 2022 renewal of the Ironclad Primary Policy. If Pinnacle or any person acting on its behalf became aware of any such contention, representation, or communication, state the following:

(a) When Pinnacle first became aware of the contention that the named-windstorm sub-limit had been deleted, including the date and circumstances;

(b) Who communicated this information to Pinnacle, and the mode and substance of such communication;

(c) What effect, if any, the deletion (or alleged deletion) of the named-windstorm sub-limit in the Ironclad Primary Policy had on Pinnacle's underwriting of the Pinnacle Policy, including whether it affected the premium, the terms of coverage, or the decision to bind the policy;

(d) What steps, if any, Pinnacle took in response to learning of the alleged deletion, including any communications with Ironclad, Tidewater, VHG, or any other party; and

(e) State Pinnacle's current position as to whether the named-windstorm sub-limit was in fact deleted from the Ironclad Primary Policy at the July 2022 renewal, and identify all facts, documents, and communications supporting that position.

INTERROGATORY NO. 11: Attachment Point and Exhaustion of Primary Layer

State Pinnacle's position regarding whether the primary layer of coverage provided by the Ironclad Primary Policy (with a limit of Twenty-Five Million Dollars ($25,000,000)) must be exhausted by actual payment by Ironclad before Pinnacle's first excess layer under the Pinnacle Policy (providing Fifteen Million Dollars ($15,000,000) in coverage excess of Twenty-Five Million Dollars ($25,000,000)) is triggered or attaches. Specifically:

(a) State whether Pinnacle contends that its coverage obligation arises only upon actual payment of the full Twenty-Five Million Dollar ($25,000,000) limit by Ironclad, or whether Pinnacle's obligation arises upon a determination that VHG's covered losses exceed the Twenty-Five Million Dollar ($25,000,000) underlying limit, regardless of whether Ironclad has made payment;

(b) If Pinnacle contends that actual payment by Ironclad is a prerequisite to the attachment of the Pinnacle excess layer, identify the specific provision(s) of the Pinnacle Policy (by section, article, endorsement, and page) that support this position;

(c) Identify all legal authorities, including case law, statutes, and treatises, that Pinnacle relies upon in support of its position regarding the exhaustion and attachment issue;

(d) State whether Pinnacle contends that Ironclad's denial of VHG's Claim, standing alone, relieves Pinnacle of any obligation to evaluate or pay VHG's Claim under the Pinnacle Policy; and

(e) State whether Pinnacle has taken the position, in any communication to VHG, Tidewater, or any other party, that VHG must first obtain payment or a judgment against Ironclad before pursuing its claim against Pinnacle, and if so, identify all such communications.

INTERROGATORY NO. 12: Flood Exclusion and Concurrent Causation

State whether the Pinnacle Policy contains a flood exclusion and/or an anti-concurrent causation clause, whether independently stated in the Pinnacle Policy or incorporated by reference from the Ironclad Primary Policy. In your response, provide the following:

(a) If the Pinnacle Policy contains a flood exclusion, identify the specific provision(s) by section, article, endorsement, and page, and state the full text of the exclusion or identify the document and provision of the Ironclad Primary Policy from which it is incorporated;

(b) If the Pinnacle Policy contains an anti-concurrent causation clause, identify the specific provision(s) by section, article, endorsement, and page, and state the full text of the clause or identify the document and provision of the Ironclad Primary Policy from which it is incorporated;

(c) If Pinnacle relies on any flood exclusion and/or anti-concurrent causation clause as a basis for denying VHG's Claim in whole or in part, describe Pinnacle's position in detail, including: (i) the specific losses or categories of losses that Pinnacle contends are excluded; (ii) the factual basis for Pinnacle's contention that flood was a cause or contributing cause of VHG's business-interruption losses at any of the three Insured Properties; (iii) the allocation, if any, between wind-caused damage and flood-caused damage that Pinnacle contends is appropriate; and (iv) whether Pinnacle contends that the anti-concurrent causation clause bars coverage for all losses, including wind-caused losses, if flood was a concurrent cause;

(d) Identify all facts, documents, engineering reports, meteorological data, expert opinions, and other evidence supporting Pinnacle's position regarding the applicability of the flood exclusion and/or anti-concurrent causation clause to VHG's Claim; and

(e) Identify all persons with knowledge of the facts supporting Pinnacle's flood exclusion and concurrent causation defense.

INTERROGATORY NO. 13: Period of Restoration Position

State Pinnacle's position regarding the appropriate period of restoration for each of the three Insured Properties. VHG contends that the actual closure and reduced-capacity periods were as follows: (i) Verimark Grand Key Resort — full closure of 178 days; (ii) Verimark Harborview Hotel & Conference Center — full closure of 135 days; and (iii) Verimark Sunset Shores — 73 days of full closure with reduced capacity continuing through February 2023. In your response, state:

(a) Whether Pinnacle accepts or disputes VHG's stated closure and reduced-capacity periods for each of the three Insured Properties;

(b) If Pinnacle contends that the period of restoration for any Insured Property should be shorter than the actual closure period, state the period of restoration that Pinnacle contends is reasonable and appropriate for each property and the basis for such contention;

(c) State the definition of "period of restoration" that Pinnacle contends governs VHG's Claim, whether such definition is contained in the Pinnacle Policy or incorporated from the Ironclad Primary Policy, and identify the specific policy provision(s) relied upon;

(d) Identify all facts, documents, construction timelines, engineering assessments, contractor estimates, building permits, and other evidence supporting Pinnacle's position regarding the appropriate period of restoration for each Insured Property;

(e) State whether Pinnacle contends that VHG unreasonably delayed the repair or restoration of any Insured Property, and if so, describe the specific delays alleged and the basis for Pinnacle's contention; and

(f) Identify all persons with knowledge of facts relevant to Pinnacle's position regarding the period of restoration.

INTERROGATORY NO. 14: Failure to Mitigate Defense

If Pinnacle contends, as an affirmative defense or otherwise, that VHG failed to mitigate its business-interruption losses arising from Hurricane Callista, describe all facts supporting this contention in detail, including:

(a) The specific steps, actions, or measures that Pinnacle contends VHG should have taken but failed to take to mitigate its business-interruption losses;

(b) The time period(s) during which Pinnacle contends VHG failed to mitigate, identified separately for each of the three Insured Properties as applicable;

(c) The amount by which Pinnacle contends VHG's losses would have been reduced had VHG taken the steps, actions, or measures identified in subpart (a) above, supported by a description of the methodology or analysis used to calculate such reduction;

(d) Identify all documents supporting Pinnacle's contention that VHG failed to mitigate, including but not limited to construction timelines, contractor correspondence, permitting records, government orders, and financial records; and

(e) Identify all persons with knowledge of facts supporting Pinnacle's failure-to-mitigate contention, including any experts or consultants who have opined on this issue.

INTERROGATORY NO. 15: Damages Quantification — Pinnacle's Position

State the amount that Pinnacle contends, if any, constitutes VHG's covered business-interruption loss under the Pinnacle Policy. VHG contends that its total business-interruption losses from Hurricane Callista are approximately Sixty Million Dollars ($60,000,000), with the Pinnacle layer covering the Fifteen Million Dollar ($15,000,000) excess of Twenty-Five Million Dollars ($25,000,000) tranche. In your response, state:

(a) Whether Pinnacle disputes VHG's claimed total loss of approximately Sixty Million Dollars ($60,000,000);

(b) If Pinnacle disputes the total claimed loss, state the amount Pinnacle contends is the correct measure of VHG's total business-interruption loss and describe the methodology, data, assumptions, and analysis used to arrive at that figure;

(c) If Pinnacle contends that no amount is owed under the Pinnacle Policy, state with specificity all grounds for that contention;

(d) Identify all experts, consultants, forensic accountants, actuaries, or adjusters who assisted Pinnacle in evaluating the quantum or reasonableness of VHG's claimed loss, including but not limited to Dr. Warren Birk of Graystone Consulting Group LLC, and for each such person, state their name, firm or affiliation, qualifications, the scope of their engagement, and the substance of their opinions or findings;

(e) Identify all documents, data, financial records, and other materials reviewed or relied upon by Pinnacle or its experts in evaluating VHG's loss; and

(f) State whether Pinnacle contends that any portion of VHG's claimed loss is attributable to causes other than Hurricane Callista, and if so, identify such causes and state the amount Pinnacle attributes to each.

INTERROGATORY NO. 16: Joint Defense Agreement

State whether Pinnacle has entered into any joint defense agreement, common interest agreement, joint prosecution agreement, cost-sharing agreement, or any similar arrangement or understanding (whether written, oral, or implied) with any co-defendant in this action, including Ironclad Indemnity Corporation, Montclair Assurance Company, and/or Sovereign Re Ltd. If Pinnacle has entered into any such agreement or arrangement, provide the following:

(a) The date of each such agreement or arrangement;

(b) The parties to each such agreement or arrangement;

(c) The scope and subject matter of each such agreement or arrangement, including whether it covers the sharing of legal analysis, factual investigation, discovery materials, expert reports, or litigation strategy;

(d) Whether Pinnacle has shared legal counsel with any co-defendant in this action, including but not limited to joint representation by Fendowell Rourke & Stanton LLP (Gregory Stanton, Meredith Liang, Colin Ashford), and if so, identify the scope and terms of such joint representation;

(e) Whether the joint representation by Fendowell Rourke & Stanton LLP of both Pinnacle and Ironclad has been the subject of any conflict-of-interest analysis, waiver, or disclosure, and if so, describe the analysis performed and identify any written waivers or consent documents; and

(f) Whether any co-defendant has agreed to indemnify, hold harmless, or contribute to Pinnacle's defense costs or any judgment or settlement in this action, or vice versa.

INTERROGATORY NO. 17: Reserves and Loss Estimates

State the amount of loss reserves, case reserves, or incurred-but-not-reported (IBNR) reserves, if any, that Pinnacle established or maintained for VHG's Hurricane Callista Claim at any time from the initial notice of loss (on or about September 22, 2022) through the present date. For each reserve amount established, state:

(a) The date the reserve was initially set;

(b) The dollar amount of the reserve as initially set;

(d) The methodology or basis used to determine the reserve amount;

(e) Whether the reserve was subsequently modified, adjusted, increased, decreased, or eliminated at any time, and if so, for each such modification, state: (i) the date of the modification; (ii) the prior reserve amount; (iii) the new reserve amount; (iv) the name and title of the person who approved the modification; and (v) the reason for the modification; and

(f) The current reserve amount, if any, maintained by Pinnacle for VHG's Claim as of the date of Pinnacle's response to these Interrogatories.

INTERROGATORY NO. 18: Reinsurance

Identify all reinsurance treaties, facultative reinsurance certificates, retrocession agreements, or other reinsurance arrangements that provide reinsurance coverage to Pinnacle for any portion of VHG's Hurricane Callista Claim under the Pinnacle Policy, or that may respond to any loss sustained by Pinnacle in connection with VHG's Claim. For each such reinsurance arrangement, state:

(a) The name of the reinsurer or retrocessionaire;

(b) The contract, treaty, or certificate number;

(d) The applicable limit, retention, and share or percentage of risk ceded;

(e) Whether any reinsurer has directed, influenced, participated in, approved, or been consulted regarding Pinnacle's coverage determination, claims handling, investigation, or denial of VHG's Claim, and if so, describe the nature and extent of such involvement;

(f) Identify all communications between Pinnacle and any reinsurer regarding VHG's Claim, including the date, participants, mode, and substance of each communication; and

(g) State whether any reinsurer has taken a position on coverage for VHG's Claim that differs from Pinnacle's position, and if so, describe such position.

INTERROGATORY NO. 19: Prior Claims Experience

Identify all claims submitted under the Pinnacle Policy (Policy No. PSL-XS1-2022-3390) during the policy period of July 1, 2022 through July 1, 2023, other than VHG's Hurricane Callista Claim. For each such claim, state:

(a) The nature and type of the claim (e.g., property damage, business interruption, liability);

(b) The date of loss and date of notice;

(d) The current status and disposition of the claim (e.g., paid, denied, reserved, pending);

(e) The amount paid, if any; and

(f) Whether the claim involved named-windstorm, hurricane, tropical storm, or flood losses.

INTERROGATORY NO. 20: Affirmative Defenses

For each affirmative defense asserted by Pinnacle in its Answer and Affirmative Defenses filed on or about April 15, 2023, in this action, state all facts known to Pinnacle that support each affirmative defense, identify all documents that support or relate to each affirmative defense, and identify all persons known to Pinnacle who have knowledge of facts relevant to each affirmative defense. This Interrogatory shall be answered separately for each affirmative defense, with the affirmative defense identified by number and description as set forth in Pinnacle's Answer.

INTERROGATORY NO. 21: Insurance Regulatory Filings and Surplus Lines Requirements

Describe all filings, reports, notices, applications, certifications, or other submissions that Pinnacle made or was required to make with any state insurance regulatory authority, department, or agency, or with any surplus lines service office or stamping office, in connection with: (a) the issuance, marketing, or delivery of the Pinnacle Policy in the State of Florida; or (b) the handling, adjustment, investigation, denial, or resolution of VHG's Hurricane Callista Claim. In your response, specifically address the following:

(a) Identify the regulatory authority or office to which each filing was made, and the date of each filing;

(b) Describe the nature and subject matter of each filing;

(c) Identify any surplus-lines stamping requirements applicable to the Pinnacle Policy under Florida law, including but not limited to requirements imposed by the Florida Surplus Lines Service Office ("FSLSO"), and state whether all such requirements were satisfied in connection with the Pinnacle Policy;

(d) If any filing was required but not made, or if any requirement was not satisfied, state the reason for the deficiency; and

(e) Identify any regulatory inquiry, investigation, complaint, or enforcement action involving Pinnacle in connection with the Pinnacle Policy or VHG's Hurricane Callista Claim.

INTERROGATORY NO. 22: Settlement Authority and Negotiations

State whether, at any time prior to the filing of this action on or about March 15, 2023, or at any time thereafter, Pinnacle or any person acting on behalf of Pinnacle (including counsel at Fendowell Rourke & Stanton LLP) engaged in any settlement discussions, negotiations, demands, offers, counteroffers, mediations, or other dispute-resolution efforts with VHG, Calderwood & Harkness LLP, Tidewater Risk Advisors LLC, or any other party regarding the resolution of VHG's Hurricane Callista Claim or any aspect of this litigation. If so, provide the following (to the extent not protected by applicable mediation privilege under Florida Statutes Section 44.405):

(a) The date of each such discussion, negotiation, or communication;

(b) The identity of all participants;

(d) The substance of each such discussion or negotiation, including any demands, offers, counteroffers, or proposals made by any party; and

(e) The outcome or current status of any such settlement discussions or negotiations.

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on this 5th day of June, 2023, I electronically filed the foregoing Plaintiff's First Set of Interrogatories to Defendant Pinnacle Surplus Lines Inc. with the Clerk of Court by using the Florida Courts E-Filing Portal, which will send a notice of electronic filing to the following counsel of record:

Gregory Stanton, Esq. Meredith Liang, Esq. Colin Ashford, Esq. FENDOWELL ROURKE & STANTON LLP 280 Trumbull Street, Suite 2200 Hartford, CT 06103 and 101 E. Kennedy Boulevard, Suite 3900 Tampa, FL 33602 Telephone: (860) 524-3100

Email: gregory.stanton@bracewellrs.com; meredith.liang@bracewellrs.com; colin.ashford@bracewellrs.com

IN THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA
GENERAL JURISDICTION DIVISION
CASE NO.: 2022-CA-031547
VERIMARK HOSPITALITY GROUP INC., a Delaware corporation,
Plaintiff,
v.
IRONCLAD INDEMNITY CORPORATION, a Connecticut corporation; PINNACLE SURPLUS LINES INC., a Texas corporation; MONTCLAIR ASSURANCE COMPANY, a New York corporation; and SOVEREIGN RE LTD., a Bermuda corporation,
Defendants.
PLAINTIFF'S FIRST SET OF INTERROGATORIES TO DEFENDANT PINNACLE SURPLUS LINES INC.
Plaintiff Verimark Hospitality Group Inc. ("VHG"), by and through its undersigned attorneys, Calderwood & Harkness LLP, hereby propounds the following Interrogatories to Defendant Pinnacle Surplus Lines Inc. ("Pinnacle"), pursuant to Rules 1.340 and 1.280 of the Florida Rules of Civil Procedure. These Interrogatories are served on this 5th day of June, 2023.
Pinnacle is required to answer each Interrogatory separately and fully, in writing and under oath, within thirty (30) days of service hereof, as provided by Rule 1.340(a), Florida Rules of Civil Procedure. Each answer shall be made by a corporate representative or officer of Pinnacle who possesses personal knowledge of the facts responsive to the Interrogatory or who has made reasonable inquiry of persons within the organization who possess such knowledge. All answers shall be signed and sworn to under oath by the person making them.
DEFINITIONS
As used in these Interrogatories, the following terms shall have the meanings set forth below:
1.  "You," "Your," and "Pinnacle" shall mean Defendant Pinnacle Surplus Lines Inc., and shall include its present and former officers, directors, employees, agents, representatives, attorneys (to the extent not otherwise protected by applicable privilege), adjusters, consultants, and any person or entity acting or purporting to act on behalf of or at the direction of Pinnacle Surplus Lines Inc., including but not limited to its parent company, subsidiaries, affiliates, and divisions.
2.  "VHG" or "Plaintiff" shall mean Verimark Hospitality Group Inc., a Delaware corporation, together with its officers, directors, employees, agents, and representatives.
3.  "Ironclad" shall mean co-defendant Ironclad Indemnity Corporation, a Connecticut corporation, together with its officers, directors, employees, agents, adjusters, representatives, and attorneys.
4.  "Pinnacle Policy" shall mean the first excess insurance policy issued by Pinnacle to VHG bearing Policy Number PSL-XS1-2022-3390, with a policy period of July 1, 2022 through July 1, 2023, providing Fifteen Million Dollars ($15,000,000) in first excess liability coverage above an underlying limit of Twenty-Five Million Dollars ($25,000,000) and subject to a Five Hundred Thousand Dollar ($500,000) deductible, including all endorsements, riders, amendments, binders, cover notes, and declarations pages forming a part thereof.
5.  "Ironclad Primary Policy" shall mean the primary all-risk property and business-interruption insurance policy issued by Ironclad Indemnity Corporation to VHG bearing Policy Number IIC-PRP-2022-07541, with a policy period of July 1, 2022 through July 1, 2023, providing Twenty-Five Million Dollars ($25,000,000) in primary coverage, including all endorsements, riders, amendments, binders, cover notes, and declarations pages forming a part thereof.
6.  "Hurricane Callista" shall mean the Category 4 hurricane that made landfall in the Lower Florida Keys on September 18, 2022, with sustained winds of approximately 145 miles per hour, as classified by the National Hurricane Center, and the windstorm, storm surge, flooding, and other conditions associated therewith.
7.  "Insured Properties" shall mean the three VHG resort properties that sustained damage as a result of Hurricane Callista, specifically: (1) Verimark Grand Key Resort, located at Mile Marker 48, Marathon, Florida 33050; (2) Verimark Harborview Hotel & Conference Center, located at 1400 Estero Boulevard, Fort Myers Beach, Florida 33931; and (3) Verimark Sunset Shores, located at 7200 Gulf Boulevard, St. Pete Beach, Florida 33706.
8.  "Claim" shall mean VHG's claim for approximately Sixty Million Dollars ($60,000,000) in business-interruption losses arising from Hurricane Callista, as submitted to Pinnacle and the other Defendants in this action, including all supplemental claims, proofs of loss, damage estimates, and supporting documentation submitted in connection therewith.
9.  "Document" or "Documents" shall be construed as broadly as permitted under the Florida Rules of Civil Procedure and shall include, without limitation, all writings, drawings, graphs, charts, photographs, audio recordings, video recordings, electronically stored information (including emails, text messages, instant messages, voicemails, social media posts and communications, metadata, databases, and data stored in any electronic format), correspondence, memoranda, notes, diaries, calendars, reports, studies, analyses, summaries, meeting minutes, agendas, presentations, spreadsheets, financial records, accounting records, invoices, receipts, contracts, agreements, policies, endorsements, binders, cover notes, underwriting files, claims files, loss runs, and communications of every kind and description, whether in paper, electronic, or any other form, including drafts and copies that differ in any respect from the original.
10.  "Communication" or "Communications" shall mean every oral, written, or electronic transmission or exchange of information, ideas, facts, or opinions between two or more persons, by any means whatsoever, including but not limited to face-to-face conversations, telephone calls, video conferences, letters, facsimiles, emails, text messages, instant messages, social media messages, and any other method of conveying information.
11.  "Person" or "Persons" shall mean any natural person, corporation, limited liability company, partnership, joint venture, association, trust, governmental body or agency, or other legal entity.
12.  "Identify" (as to a person) shall mean to state the person's full legal name, title or position, current employer or organizational affiliation, current business address, current telephone number, and, if the person is a former employee of Pinnacle or any affiliated entity, the dates of employment and last known address and telephone number.
13.  "Identify" (as to a document) shall mean to state the date of the document, the name and title of the author or creator, the names and titles of all recipients (including those copied), a description of the subject matter of the document, the type of document (e.g., letter, email, memorandum, report), and the present location or custodian of the document, or, if the document has been destroyed or is no longer in existence, the date, manner, and reason for its destruction or loss.
14.  "Follow form" shall mean any provision in the Pinnacle Policy that incorporates, references, adopts, or defers to the terms, conditions, definitions, exclusions, limitations, or coverage provisions of the Ironclad Primary Policy, whether by express incorporation, by reference, by endorsement, or by operation of any "follow form" or similar clause contained in the Pinnacle Policy.
15.  "Tidewater" shall mean Tidewater Risk Advisors LLC, VHG's insurance broker of record, with its principal office located at 2600 S. Bayshore Drive, Suite 800, Miami, Florida 33133, including its principals, employees, agents, and representatives, including without limitation Franklin Orde.
16.  "Arbor Claims" shall mean Arbor Claims Services LLC, the independent adjusting firm retained by Ironclad in connection with VHG's Hurricane Callista Claim, including its principals, employees, agents, adjusters, and representatives.
INSTRUCTIONS
The following instructions apply to each Interrogatory set forth below:
1.  Each Interrogatory shall be answered separately and fully in accordance with Rule 1.340, Florida Rules of Civil Procedure. Pinnacle shall provide all information within its possession, custody, or control, or that is otherwise available to it through reasonable inquiry of its officers, directors, employees, agents, representatives, adjusters, consultants, attorneys (to the extent not protected by applicable privilege), and any other persons acting on its behalf.
2.  If any Interrogatory cannot be answered in full after the exercise of due diligence and reasonable inquiry, Pinnacle shall answer to the fullest extent possible, specify the portion of the Interrogatory that cannot be answered, state the reason for the inability to provide a complete answer, and describe the efforts undertaken to obtain the requested information.
3.  If Pinnacle objects to any Interrogatory or any part thereof, Pinnacle shall state the objection with specificity, identify the legal basis for the objection, and, notwithstanding the objection, answer the Interrogatory to the extent it is not subject to the stated objection. A general or blanket objection, without more, shall not be deemed a valid objection.
4.  These Interrogatories are continuing in nature pursuant to Rule 1.280(e), Florida Rules of Civil Procedure. Pinnacle is required to supplement, amend, or correct its answers promptly upon obtaining additional or different information responsive to any Interrogatory.
5.  Where an Interrogatory requests identification of a document, Pinnacle may, in lieu of providing the detailed identification information requested, specify the document by Bates number or other identifying designation and produce the document for inspection and copying pursuant to Rule 1.340(c), Florida Rules of Civil Procedure, provided that such production is made within the time period for answering these Interrogatories.
6.  If any information responsive to any Interrogatory is withheld on the basis of the attorney-client privilege, the work-product doctrine, or any other applicable privilege or protection, Pinnacle shall provide a privilege log identifying for each item withheld: (a) the privilege or protection asserted; (b) the nature of the information or document withheld (e.g., memorandum, email, letter); (c) the date of the communication or document; (d) the author or speaker and all recipients, addressees, or persons present; (e) the general subject matter of the communication or document, described in sufficient detail to permit the Court to adjudicate the validity of the privilege claim; and (f) the basis for the claim that the privilege or protection applies.
7.  If Pinnacle contends that any Interrogatory is vague, ambiguous, overly broad, or unduly burdensome, Pinnacle shall state its interpretation of the Interrogatory and respond accordingly, in addition to stating its specific objection.
INTERROGATORIES
INTERROGATORY NO. 1: Corporate Information and Organizational Structure
State Pinnacle's full legal name, state of domicile, date of incorporation, principal office address, and all other office addresses. Identify each state in which Pinnacle is licensed, authorized, or approved to transact insurance business, and for each such state, specify whether Pinnacle operates as an admitted carrier or as a surplus lines insurer. State Pinnacle's NAIC number, if applicable, or its surplus lines identification number(s). Identify Pinnacle's parent company or holding company, if any, and describe the corporate relationship (including the percentage of ownership interest held). Identify all affiliated entities, subsidiaries, or divisions that were involved in any way in the underwriting, issuance, marketing, distribution, administration, claims handling, or reinsurance of the Pinnacle Policy, and describe the role of each such entity.
INTERROGATORY NO. 2: Identification of Persons with Knowledge
Identify each person known to Pinnacle, or known to Pinnacle through reasonable inquiry, who has knowledge of facts relevant to VHG's Claim under the Pinnacle Policy, or to any defense or affirmative defense asserted by Pinnacle in this action, including but not limited to persons with knowledge of: (a) the underwriting, negotiation, issuance, or placement of the Pinnacle Policy; (b) the claims-handling process for VHG's Hurricane Callista Claim, including but not limited to receipt of notice of loss, investigation, evaluation, reserving, and determination of coverage; (c) Pinnacle's decision, communicated on or about February 10, 2023, to follow or adopt Ironclad's coverage denial dated February 3, 2023; (d) any communications between Pinnacle and any co-defendant in this action, including Ironclad Indemnity Corporation, Montclair Assurance Company, and Sovereign Re Ltd., regarding VHG's Claim; (e) any communications between Pinnacle and Tidewater Risk Advisors LLC, including Franklin Orde, regarding VHG's Claim or the Pinnacle Policy; and (f) any communications between Pinnacle and Arbor Claims Services LLC regarding VHG's Claim. For each person identified, state their full name, title or position, current employer or organizational affiliation, business address, telephone number, and a description of the subject matter of their knowledge.
INTERROGATORY NO. 3: Follow-Form Provisions — Scope and Application
Describe in detail every provision of the Pinnacle Policy (Policy No. PSL-XS1-2022-3390) that incorporates, references, adopts, defers to, or otherwise follows the terms, conditions, definitions, exclusions, limitations, or coverage grants of the Ironclad Primary Policy (Policy No. IIC-PRP-2022-07541), whether by express incorporation, by reference, by endorsement, or by operation of any "follow form," "same terms and conditions," or similar clause. For each such provision identified:
(a) State the specific section, article, endorsement, or page of the Pinnacle Policy in which the provision appears;
(b) State whether Pinnacle contends that the Pinnacle Policy follows form to the Ironclad Primary Policy in all respects or only in specified respects, and if only in specified respects, identify each respect in which the Pinnacle Policy follows form and each respect in which it does not;
(c) State whether Pinnacle contends that any term, condition, definition, exclusion, or limitation of the Pinnacle Policy differs from, modifies, restricts, expands, or supersedes the corresponding term, condition, definition, exclusion, or limitation of the Ironclad Primary Policy, and if so, identify each such difference with specificity and state the effect Pinnacle contends each such difference has on coverage for VHG's Claim;
(d) State Pinnacle's position as to whether the follow-form provisions of the Pinnacle Policy incorporate the named-windstorm sub-limit provisions, if any, of the Ironclad Primary Policy;
(e) State Pinnacle's position as to whether the follow-form provisions of the Pinnacle Policy incorporate the flood exclusion provisions, if any, of the Ironclad Primary Policy;
(f) State Pinnacle's position as to whether the follow-form provisions of the Pinnacle Policy incorporate the anti-concurrent causation clause, if any, of the Ironclad Primary Policy; and
(g) State Pinnacle's position as to whether the follow-form provisions of the Pinnacle Policy incorporate the period of restoration definition of the Ironclad Primary Policy.
INTERROGATORY NO. 4: Named Windstorm Sub-Limit — Pinnacle's Position
State whether the Pinnacle Policy contains a named-windstorm sub-limit or any other limitation, sub-limit, cap, or restriction on coverage for property damage or business-interruption losses caused by or arising out of named windstorms, hurricanes, tropical storms, or similar weather events. If Pinnacle contends that a named-windstorm sub-limit or similar limitation applies to VHG's Claim under the Pinnacle Policy, whether independently stated or incorporated by reference to the Ironclad Primary Policy, provide the following information:
(a) Identify the specific policy provision(s), endorsement(s), or clause(s) imposing such sub-limit or limitation, by section, article, endorsement number, and page;
(b) State the dollar amount of the sub-limit or limitation;
(c) State whether the sub-limit or limitation is independently stated in the Pinnacle Policy or is incorporated solely by reference to the Ironclad Primary Policy;
(d) If incorporated by reference, identify the specific provision of the Ironclad Primary Policy that Pinnacle contends is incorporated and state the mechanism of incorporation (i.e., the specific follow-form clause or endorsement in the Pinnacle Policy through which incorporation occurs);
(e) State Pinnacle's position as to whether the Fifteen Million Dollar ($15,000,000) named-windstorm sub-limit contained in prior policy periods of the Ironclad Primary Policy was deleted, removed, or modified during the July 2022 renewal, and if Pinnacle disputes that such deletion occurred, state all facts, documents, and communications supporting Pinnacle's position;
(f) If Pinnacle contends that the named-windstorm sub-limit was not deleted at the July 2022 renewal, state whether and how the retention or continuation of the sub-limit was communicated to Pinnacle during the underwriting or placement of the Pinnacle Policy;
(g) Identify all documents and communications reviewed, considered, or relied upon by Pinnacle in reaching its position regarding the applicability of any named-windstorm sub-limit to VHG's Claim; and
(h) Identify all persons who participated in the analysis or determination of Pinnacle's position regarding the named-windstorm sub-limit.
INTERROGATORY NO. 5: Basis for Following Ironclad's Denial
Describe in detail the factual and legal basis for Pinnacle's decision, communicated to VHG on or about February 10, 2023, to follow, adopt, or adhere to Ironclad Indemnity Corporation's formal denial of coverage for VHG's Hurricane Callista Claim, which denial was issued by Ironclad on February 3, 2023. In your response, state the following:
(a) Identify by name, title, and position each person at Pinnacle, or acting on behalf of Pinnacle, who made, participated in, reviewed, approved, or was consulted regarding the decision to follow Ironclad's denial;
(b) State the date or dates on which the decision was made, reviewed, and approved, and describe the internal decision-making process, including any committee review, management approval, or escalation procedures that were followed;
(c) Describe in detail what analysis, if any, Pinnacle independently conducted of VHG's Claim before adopting or following Ironclad's denial, including any independent review of the Pinnacle Policy terms, the underlying loss documentation, the Ironclad Primary Policy terms, and the facts and circumstances of VHG's Hurricane Callista losses;
(d) State whether Pinnacle relied solely or primarily on Ironclad's stated grounds for denial, or whether Pinnacle conducted any independent investigation, coverage analysis, or factual inquiry separate and apart from Ironclad's analysis, and if so, describe the scope and findings of any such independent analysis;
(e) State whether Pinnacle sought, obtained, or received any independent legal advice regarding VHG's Claim or the coverage available under the Pinnacle Policy, and if so, identify the attorney or law firm providing such advice, the date(s) on which advice was sought and received, and the subject matter of such advice (to the extent not protected by applicable privilege);
(f) State whether Pinnacle's denial of VHG's Claim was based on identical grounds as those stated in Ironclad's February 3, 2023 denial letter (i.e., the named-windstorm sub-limit, the period of restoration, the concurrent causation/flood exclusion, and the alleged failure to mitigate), or whether Pinnacle's denial was based on different, additional, or fewer grounds, and if different or additional, identify each such ground with specificity; and
(g) Identify all documents, reports, analyses, memoranda, and communications created, reviewed, or relied upon by Pinnacle in connection with its decision to follow Ironclad's denial.
INTERROGATORY NO. 6: Independent Investigation and Claims Handling
Describe all steps Pinnacle took to independently investigate, evaluate, adjust, or otherwise handle VHG's Hurricane Callista business-interruption Claim, separate and apart from any investigation, adjustment, or evaluation conducted by Ironclad Indemnity Corporation, Arbor Claims Services LLC, or any other co-defendant. In your response, include the following:
(a) State the dates of any inspections, site visits, or surveys of any of the three Insured Properties conducted by Pinnacle or any person acting on its behalf, and for each, identify the person(s) who conducted the inspection, the property inspected, and the findings or observations made;
(b) Identify any adjusters, engineers, forensic accountants, building consultants, meteorologists, or other consultants retained or engaged by Pinnacle in connection with VHG's Claim, and for each, state the person's name, firm, qualifications, the scope of the engagement, the date of retention, and the substance of any reports, opinions, or findings provided;
(c) Identify all documents reviewed by Pinnacle in evaluating VHG's Claim, including but not limited to VHG's proof of loss, financial records, tax returns, revenue data, occupancy reports, repair estimates, engineering reports, and any documentation submitted by VHG, Tidewater, or Arbor Claims;
(d) State whether Pinnacle obtained or prepared any independent coverage opinion, coverage analysis, or coverage memorandum regarding VHG's Claim, and if so, identify the date, author, and subject matter of each such opinion, analysis, or memorandum (to the extent not protected by applicable privilege);
(e) Describe the timeline of Pinnacle's claims-handling activities from the date of first notice of VHG's Claim through the date of Pinnacle's denial on or about February 10, 2023, including all key dates, actions taken, and decisions made; and
(f) State whether Pinnacle's claims-handling procedures required any independent evaluation of an excess claim before adopting or following a primary carrier's coverage determination, and if so, describe such procedures and state whether they were followed in connection with VHG's Claim.
INTERROGATORY NO. 7: Communications with Ironclad Regarding VHG's Claim
Describe all communications between Pinnacle and Ironclad Indemnity Corporation (including their respective employees, agents, adjusters, consultants, and counsel) regarding VHG's Hurricane Callista Claim, from the date of Hurricane Callista (September 18, 2022) through the present. For each communication, state:
(a) The date and approximate time of the communication;
(b) The names, titles, and organizational affiliations of all participants in or recipients of the communication;
(c) The mode of communication (i.e., in-person meeting, telephone call, video conference, email, letter, facsimile, text message, or other);
(d) The substance and subject matter of the communication, described with sufficient detail to permit understanding of the topics discussed and the positions or information exchanged; and
(e) Whether any document was created, transmitted, or referenced in connection with the communication, and if so, identify each such document.
Without limiting the generality of the foregoing, this Interrogatory specifically encompasses communications regarding: (i) notice of VHG's Claim; (ii) Ironclad's reservation of rights letter dated October 12, 2022; (iii) Ironclad's investigation and adjustment of VHG's Claim, including any reports or findings shared by Ironclad or Arbor Claims with Pinnacle; (iv) Ironclad's formal denial of coverage dated February 3, 2023; (v) Pinnacle's decision to follow Ironclad's denial, communicated on or about February 10, 2023; (vi) any joint defense strategy, coordination of litigation positions, or sharing of legal analysis between Pinnacle and Ironclad; (vii) any discussions regarding settlement, mediation, or resolution of VHG's Claim; and (viii) any discussions regarding the allocation of defense costs or indemnity obligations among the defendants.
INTERROGATORY NO. 8: Communications with Other Excess Carriers
Describe all communications between Pinnacle and co-defendants Montclair Assurance Company and/or Sovereign Re Ltd. (including their respective employees, agents, adjusters, consultants, and counsel, including attorneys at Delvecchio & Kraus LLP) regarding VHG's Hurricane Callista Claim, from the date of Hurricane Callista (September 18, 2022) through the present. For each communication, state:
(a) The date and approximate time of the communication;
(b) The names, titles, and organizational affiliations of all participants in or recipients of the communication;
(c) The mode of communication (i.e., in-person meeting, telephone call, video conference, email, letter, facsimile, text message, or other);
(d) The substance and subject matter of the communication; and
(e) Whether any document was created, transmitted, or referenced in connection with the communication, and if so, identify each such document.
INTERROGATORY NO. 9: Underwriting of the Pinnacle Policy
Describe in detail the underwriting process for the Pinnacle Policy (Policy No. PSL-XS1-2022-3390), from initial submission through binding and issuance. In your response, provide the following:
(a) Identify every person at Pinnacle, or acting on behalf of Pinnacle, who was involved in underwriting, reviewing, quoting, approving, binding, or issuing the Pinnacle Policy, including each such person's name, title, and role in the underwriting process;
(b) Describe all information, documents, submissions, applications, loss runs, statements of values, engineering reports, catastrophe model outputs, or other materials reviewed by Pinnacle in underwriting the Pinnacle Policy, including but not limited to any submissions received from Tidewater Risk Advisors LLC, VHG, or any other broker, agent, or intermediary;
(c) State the annual premium charged by Pinnacle for the Pinnacle Policy. VHG's records reflect a premium of Four Hundred Ten Thousand Dollars ($410,000) — confirm this amount or state the correct premium;
(d) Describe the methodology used to calculate the premium, including any rating factors, loss models, catastrophe models, experience modification factors, or other actuarial or underwriting factors considered, and specifically address whether and how any of the following factors were taken into account in the premium calculation: (i) named-windstorm risk and hurricane exposure for the Insured Properties; (ii) Florida coastal property exposure; (iii) the attachment point of Twenty-Five Million Dollars ($25,000,000); (iv) the presence or absence of a named-windstorm sub-limit in the underlying Ironclad Primary Policy; and (v) VHG's claims history;
(e) Identify all communications between Pinnacle and Tidewater Risk Advisors LLC (including Franklin Orde) or any other broker, agent, or intermediary regarding the placement, terms, conditions, and pricing of the Pinnacle Policy's first excess layer, including any negotiations or discussions regarding coverage terms, exclusions, sub-limits, and premium;
(f) State whether Pinnacle received, reviewed, or relied upon a copy of the Ironclad Primary Policy during the underwriting of the Pinnacle Policy, and if so, identify the version or draft of the Ironclad Primary Policy reviewed and the date on which it was received; and
(g) State whether Pinnacle's underwriting of the Pinnacle Policy was conditioned upon, or influenced by, the terms of the Ironclad Primary Policy, including but not limited to the presence or absence of a named-windstorm sub-limit, a flood exclusion, or an anti-concurrent causation clause.
INTERROGATORY NO. 10: Awareness of Windstorm Sub-Limit Deletion at Primary Layer
State whether, at any time before, during, or after the placement of the Pinnacle Policy, or during the handling of VHG's Hurricane Callista Claim, Pinnacle or any person acting on behalf of Pinnacle became aware of any contention, representation, or communication by VHG, Tidewater Risk Advisors LLC, Franklin Orde, or any other person or entity that the Fifteen Million Dollar ($15,000,000) named-windstorm sub-limit contained in the Ironclad Primary Policy had been deleted, removed, modified, or otherwise changed during the July 2022 renewal of the Ironclad Primary Policy. If Pinnacle or any person acting on its behalf became aware of any such contention, representation, or communication, state the following:
(a) When Pinnacle first became aware of the contention that the named-windstorm sub-limit had been deleted, including the date and circumstances;
(b) Who communicated this information to Pinnacle, and the mode and substance of such communication;
(c) What effect, if any, the deletion (or alleged deletion) of the named-windstorm sub-limit in the Ironclad Primary Policy had on Pinnacle's underwriting of the Pinnacle Policy, including whether it affected the premium, the terms of coverage, or the decision to bind the policy;
(d) What steps, if any, Pinnacle took in response to learning of the alleged deletion, including any communications with Ironclad, Tidewater, VHG, or any other party; and
(e) State Pinnacle's current position as to whether the named-windstorm sub-limit was in fact deleted from the Ironclad Primary Policy at the July 2022 renewal, and identify all facts, documents, and communications supporting that position.
INTERROGATORY NO. 11: Attachment Point and Exhaustion of Primary Layer
State Pinnacle's position regarding whether the primary layer of coverage provided by the Ironclad Primary Policy (with a limit of Twenty-Five Million Dollars ($25,000,000)) must be exhausted by actual payment by Ironclad before Pinnacle's first excess layer under the Pinnacle Policy (providing Fifteen Million Dollars ($15,000,000) in coverage excess of Twenty-Five Million Dollars ($25,000,000)) is triggered or attaches. Specifically:
(a) State whether Pinnacle contends that its coverage obligation arises only upon actual payment of the full Twenty-Five Million Dollar ($25,000,000) limit by Ironclad, or whether Pinnacle's obligation arises upon a determination that VHG's covered losses exceed the Twenty-Five Million Dollar ($25,000,000) underlying limit, regardless of whether Ironclad has made payment;
(b) If Pinnacle contends that actual payment by Ironclad is a prerequisite to the attachment of the Pinnacle excess layer, identify the specific provision(s) of the Pinnacle Policy (by section, article, endorsement, and page) that support this position;
(c) Identify all legal authorities, including case law, statutes, and treatises, that Pinnacle relies upon in support of its position regarding the exhaustion and attachment issue;
(d) State whether Pinnacle contends that Ironclad's denial of VHG's Claim, standing alone, relieves Pinnacle of any obligation to evaluate or pay VHG's Claim under the Pinnacle Policy; and
(e) State whether Pinnacle has taken the position, in any communication to VHG, Tidewater, or any other party, that VHG must first obtain payment or a judgment against Ironclad before pursuing its claim against Pinnacle, and if so, identify all such communications.
INTERROGATORY NO. 12: Flood Exclusion and Concurrent Causation
State whether the Pinnacle Policy contains a flood exclusion and/or an anti-concurrent causation clause, whether independently stated in the Pinnacle Policy or incorporated by reference from the Ironclad Primary Policy. In your response, provide the following:
(a) If the Pinnacle Policy contains a flood exclusion, identify the specific provision(s) by section, article, endorsement, and page, and state the full text of the exclusion or identify the document and provision of the Ironclad Primary Policy from which it is incorporated;
(b) If the Pinnacle Policy contains an anti-concurrent causation clause, identify the specific provision(s) by section, article, endorsement, and page, and state the full text of the clause or identify the document and provision of the Ironclad Primary Policy from which it is incorporated;
(c) If Pinnacle relies on any flood exclusion and/or anti-concurrent causation clause as a basis for denying VHG's Claim in whole or in part, describe Pinnacle's position in detail, including: (i) the specific losses or categories of losses that Pinnacle contends are excluded; (ii) the factual basis for Pinnacle's contention that flood was a cause or contributing cause of VHG's business-interruption losses at any of the three Insured Properties; (iii) the allocation, if any, between wind-caused damage and flood-caused damage that Pinnacle contends is appropriate; and (iv) whether Pinnacle contends that the anti-concurrent causation clause bars coverage for all losses, including wind-caused losses, if flood was a concurrent cause;
(d) Identify all facts, documents, engineering reports, meteorological data, expert opinions, and other evidence supporting Pinnacle's position regarding the applicability of the flood exclusion and/or anti-concurrent causation clause to VHG's Claim; and
(e) Identify all persons with knowledge of the facts supporting Pinnacle's flood exclusion and concurrent causation defense.
INTERROGATORY NO. 13: Period of Restoration Position
State Pinnacle's position regarding the appropriate period of restoration for each of the three Insured Properties. VHG contends that the actual closure and reduced-capacity periods were as follows: (i) Verimark Grand Key Resort — full closure of 178 days; (ii) Verimark Harborview Hotel & Conference Center — full closure of 135 days; and (iii) Verimark Sunset Shores — 73 days of full closure with reduced capacity continuing through February 2023. In your response, state:
(a) Whether Pinnacle accepts or disputes VHG's stated closure and reduced-capacity periods for each of the three Insured Properties;
(b) If Pinnacle contends that the period of restoration for any Insured Property should be shorter than the actual closure period, state the period of restoration that Pinnacle contends is reasonable and appropriate for each property and the basis for such contention;
(c) State the definition of "period of restoration" that Pinnacle contends governs VHG's Claim, whether such definition is contained in the Pinnacle Policy or incorporated from the Ironclad Primary Policy, and identify the specific policy provision(s) relied upon;
(d) Identify all facts, documents, construction timelines, engineering assessments, contractor estimates, building permits, and other evidence supporting Pinnacle's position regarding the appropriate period of restoration for each Insured Property;
(e) State whether Pinnacle contends that VHG unreasonably delayed the repair or restoration of any Insured Property, and if so, describe the specific delays alleged and the basis for Pinnacle's contention; and
(f) Identify all persons with knowledge of facts relevant to Pinnacle's position regarding the period of restoration.
INTERROGATORY NO. 14: Failure to Mitigate Defense
If Pinnacle contends, as an affirmative defense or otherwise, that VHG failed to mitigate its business-interruption losses arising from Hurricane Callista, describe all facts supporting this contention in detail, including:
(a) The specific steps, actions, or measures that Pinnacle contends VHG should have taken but failed to take to mitigate its business-interruption losses;
(b) The time period(s) during which Pinnacle contends VHG failed to mitigate, identified separately for each of the three Insured Properties as applicable;
(c) The amount by which Pinnacle contends VHG's losses would have been reduced had VHG taken the steps, actions, or measures identified in subpart (a) above, supported by a description of the methodology or analysis used to calculate such reduction;
(d) Identify all documents supporting Pinnacle's contention that VHG failed to mitigate, including but not limited to construction timelines, contractor correspondence, permitting records, government orders, and financial records; and
(e) Identify all persons with knowledge of facts supporting Pinnacle's failure-to-mitigate contention, including any experts or consultants who have opined on this issue.
INTERROGATORY NO. 15: Damages Quantification — Pinnacle's Position
State the amount that Pinnacle contends, if any, constitutes VHG's covered business-interruption loss under the Pinnacle Policy. VHG contends that its total business-interruption losses from Hurricane Callista are approximately Sixty Million Dollars ($60,000,000), with the Pinnacle layer covering the Fifteen Million Dollar ($15,000,000) excess of Twenty-Five Million Dollars ($25,000,000) tranche. In your response, state:
(a) Whether Pinnacle disputes VHG's claimed total loss of approximately Sixty Million Dollars ($60,000,000);
(b) If Pinnacle disputes the total claimed loss, state the amount Pinnacle contends is the correct measure of VHG's total business-interruption loss and describe the methodology, data, assumptions, and analysis used to arrive at that figure;
(c) If Pinnacle contends that no amount is owed under the Pinnacle Policy, state with specificity all grounds for that contention;
(d) Identify all experts, consultants, forensic accountants, actuaries, or adjusters who assisted Pinnacle in evaluating the quantum or reasonableness of VHG's claimed loss, including but not limited to Dr. Warren Birk of Graystone Consulting Group LLC, and for each such person, state their name, firm or affiliation, qualifications, the scope of their engagement, and the substance of their opinions or findings;
(e) Identify all documents, data, financial records, and other materials reviewed or relied upon by Pinnacle or its experts in evaluating VHG's loss; and
(f) State whether Pinnacle contends that any portion of VHG's claimed loss is attributable to causes other than Hurricane Callista, and if so, identify such causes and state the amount Pinnacle attributes to each.
INTERROGATORY NO. 16: Joint Defense Agreement
State whether Pinnacle has entered into any joint defense agreement, common interest agreement, joint prosecution agreement, cost-sharing agreement, or any similar arrangement or understanding (whether written, oral, or implied) with any co-defendant in this action, including Ironclad Indemnity Corporation, Montclair Assurance Company, and/or Sovereign Re Ltd. If Pinnacle has entered into any such agreement or arrangement, provide the following:
(a) The date of each such agreement or arrangement;
(b) The parties to each such agreement or arrangement;
(c) The scope and subject matter of each such agreement or arrangement, including whether it covers the sharing of legal analysis, factual investigation, discovery materials, expert reports, or litigation strategy;
(d) Whether Pinnacle has shared legal counsel with any co-defendant in this action, including but not limited to joint representation by Fendowell Rourke & Stanton LLP (Gregory Stanton, Meredith Liang, Colin Ashford), and if so, identify the scope and terms of such joint representation;
(e) Whether the joint representation by Fendowell Rourke & Stanton LLP of both Pinnacle and Ironclad has been the subject of any conflict-of-interest analysis, waiver, or disclosure, and if so, describe the analysis performed and identify any written waivers or consent documents; and
(f) Whether any co-defendant has agreed to indemnify, hold harmless, or contribute to Pinnacle's defense costs or any judgment or settlement in this action, or vice versa.
INTERROGATORY NO. 17: Reserves and Loss Estimates
State the amount of loss reserves, case reserves, or incurred-but-not-reported (IBNR) reserves, if any, that Pinnacle established or maintained for VHG's Hurricane Callista Claim at any time from the initial notice of loss (on or about September 22, 2022) through the present date. For each reserve amount established, state:
(a) The date the reserve was initially set;
(b) The dollar amount of the reserve as initially set;
(c) The name, title, and position of the person who set, calculated, or approved the reserve;
(d) The methodology or basis used to determine the reserve amount;
(e) Whether the reserve was subsequently modified, adjusted, increased, decreased, or eliminated at any time, and if so, for each such modification, state: (i) the date of the modification; (ii) the prior reserve amount; (iii) the new reserve amount; (iv) the name and title of the person who approved the modification; and (v) the reason for the modification; and
(f) The current reserve amount, if any, maintained by Pinnacle for VHG's Claim as of the date of Pinnacle's response to these Interrogatories.
INTERROGATORY NO. 18: Reinsurance
Identify all reinsurance treaties, facultative reinsurance certificates, retrocession agreements, or other reinsurance arrangements that provide reinsurance coverage to Pinnacle for any portion of VHG's Hurricane Callista Claim under the Pinnacle Policy, or that may respond to any loss sustained by Pinnacle in connection with VHG's Claim. For each such reinsurance arrangement, state:
(a) The name of the reinsurer or retrocessionaire;
(b) The contract, treaty, or certificate number;
(c) The type of reinsurance (e.g., quota share, excess of loss, facultative, treaty);
(d) The applicable limit, retention, and share or percentage of risk ceded;
(e) Whether any reinsurer has directed, influenced, participated in, approved, or been consulted regarding Pinnacle's coverage determination, claims handling, investigation, or denial of VHG's Claim, and if so, describe the nature and extent of such involvement;
(f) Identify all communications between Pinnacle and any reinsurer regarding VHG's Claim, including the date, participants, mode, and substance of each communication; and
(g) State whether any reinsurer has taken a position on coverage for VHG's Claim that differs from Pinnacle's position, and if so, describe such position.
INTERROGATORY NO. 19: Prior Claims Experience
Identify all claims submitted under the Pinnacle Policy (Policy No. PSL-XS1-2022-3390) during the policy period of July 1, 2022 through July 1, 2023, other than VHG's Hurricane Callista Claim. For each such claim, state:
(a) The nature and type of the claim (e.g., property damage, business interruption, liability);
(b) The date of loss and date of notice;
(c) The amount claimed;
(d) The current status and disposition of the claim (e.g., paid, denied, reserved, pending);
(e) The amount paid, if any; and
(f) Whether the claim involved named-windstorm, hurricane, tropical storm, or flood losses.
INTERROGATORY NO. 20: Affirmative Defenses
For each affirmative defense asserted by Pinnacle in its Answer and Affirmative Defenses filed on or about April 15, 2023, in this action, state all facts known to Pinnacle that support each affirmative defense, identify all documents that support or relate to each affirmative defense, and identify all persons known to Pinnacle who have knowledge of facts relevant to each affirmative defense. This Interrogatory shall be answered separately for each affirmative defense, with the affirmative defense identified by number and description as set forth in Pinnacle's Answer.
INTERROGATORY NO. 21: Insurance Regulatory Filings and Surplus Lines Requirements
Describe all filings, reports, notices, applications, certifications, or other submissions that Pinnacle made or was required to make with any state insurance regulatory authority, department, or agency, or with any surplus lines service office or stamping office, in connection with: (a) the issuance, marketing, or delivery of the Pinnacle Policy in the State of Florida; or (b) the handling, adjustment, investigation, denial, or resolution of VHG's Hurricane Callista Claim. In your response, specifically address the following:
(a) Identify the regulatory authority or office to which each filing was made, and the date of each filing;
(b) Describe the nature and subject matter of each filing;
(c) Identify any surplus-lines stamping requirements applicable to the Pinnacle Policy under Florida law, including but not limited to requirements imposed by the Florida Surplus Lines Service Office ("FSLSO"), and state whether all such requirements were satisfied in connection with the Pinnacle Policy;
(d) If any filing was required but not made, or if any requirement was not satisfied, state the reason for the deficiency; and
(e) Identify any regulatory inquiry, investigation, complaint, or enforcement action involving Pinnacle in connection with the Pinnacle Policy or VHG's Hurricane Callista Claim.
INTERROGATORY NO. 22: Settlement Authority and Negotiations
State whether, at any time prior to the filing of this action on or about March 15, 2023, or at any time thereafter, Pinnacle or any person acting on behalf of Pinnacle (including counsel at Fendowell Rourke & Stanton LLP) engaged in any settlement discussions, negotiations, demands, offers, counteroffers, mediations, or other dispute-resolution efforts with VHG, Calderwood & Harkness LLP, Tidewater Risk Advisors LLC, or any other party regarding the resolution of VHG's Hurricane Callista Claim or any aspect of this litigation. If so, provide the following (to the extent not protected by applicable mediation privilege under Florida Statutes Section 44.405):
(a) The date of each such discussion, negotiation, or communication;
(b) The identity of all participants;
(c) The mode of communication (in-person, telephonic, written, electronic);
(d) The substance of each such discussion or negotiation, including any demands, offers, counteroffers, or proposals made by any party; and
(e) The outcome or current status of any such settlement discussions or negotiations.
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 5th day of June, 2023, I electronically filed the foregoing Plaintiff's First Set of Interrogatories to Defendant Pinnacle Surplus Lines Inc. with the Clerk of Court by using the Florida Courts E-Filing Portal, which will send a notice of electronic filing to the following counsel of record:
Gregory Stanton, Esq. Meredith Liang, Esq. Colin Ashford, Esq. FENDOWELL ROURKE & STANTON LLP 280 Trumbull Street, Suite 2200 Hartford, CT 06103 and 101 E. Kennedy Boulevard, Suite 3900 Tampa, FL 33602 Telephone: (860) 524-3100
Email: gregory.stanton@bracewellrs.com; meredith.liang@bracewellrs.com; colin.ashford@bracewellrs.com
Counsel for Defendants Ironclad Indemnity Corporation and Pinnacle Surplus Lines Inc.
Patricia Kraus, Esq. DELVECCHIO & KRAUS LLP 425 Park Avenue, 20th Floor New York, NY 10022 Telephone: (212) 371-8800
Email: pkraus@delvecchiokraus.com
Counsel for Defendants Montclair Assurance Company and Sovereign Re Ltd.
CALDERWOOD & HARKNESS LLP
By: ________
Elaine Forsythe, Esq. Florida Bar No. 0098231 Tiffany Rosenthal, Esq. Florida Bar No. 0114756 333 SE 2nd Avenue, Suite 4400 Miami, FL 33131 Telephone: (305) 579-2600 Facsimile: (305) 579-2601
Email: eforsythe@calderwoodharkness.com
Email: trosenthal@calderwoodharkness.com
Attorneys for Plaintiff Verimark Hospitality Group Inc.

IN THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA

GENERAL JURISDICTION DIVISION

CASE NO.: 2022-CA-031547

PLAINTIFF'S FIRST SET OF INTERROGATORIES TO DEFENDANT PINNACLE SURPLUS LINES INC.

DEFINITIONS

INSTRUCTIONS

INTERROGATORIES

CERTIFICATE OF SERVICE

Record

Parties

Dates

Amounts