Written by Christian Dennie
March 25, 2018

Deatrich Wise, Jr. (“Wise”), a former member of the University of Arkansas football team and a current member of the New England Patriots, filed suit against Lloyd’s of London and his insurance broker based on the failure to make payment on his loss of value claim. Wise claims he was a projected first round draft pick and was designated as an exceptional student-athlete by the NCAA. As a result, he was offered various insurance options including loss of value insurance. After reviewing his options, Wise selected coverage from Lloyd’s of London.

In accordance with the insurance policy, if Wise was injured and he was unable to secure a contract for $3.6 million, then he would be entitled to insurance coverage to pay the outstanding amount. Although I have not seen Wise’s specific policy, these policies generally require that the injury was the “sole and direct” cause of the loss of value. In his petition, Wise indicated he injured his hand on September 3, 2016 and his shoulder on October 22, 2016. As a result of the injuries, Wise was slowed and missed several games. Ultimately, Wise’s draft position slipped and he was selected in the fourth (4th) round of the NFL draft with the 131st selection by the New England Patriots. Wise signed a four-year, $2,975,883.00 with the New England Patriots, which is less than the threshold set forth in the loss of value policy.

Wise claims that Lloyd’s of London and its representatives and agents used “delay tactics” for more than six (6) months to delay his claims despite Wise and his agents repeatedly following up with them. Much to the chagrin of Wise, Lloyd’s of London has failed to make payment under the terms of the loss of value policy and has claimed that Wise’s injuries do not constitute “bodily injury” under the terms of the loss of value policy. Additionally, Wise argues that his insurance representatives failed to keep Wise fully informed so he could remain safely insured, to review the loss of value policy, and explain the terms and conditions of the loss of value policy.

As result of these alleged acts and omissions, Wise filed suit against Lloyd’s of London and his insurance broker under theories of bad faith insurance practices in accordance with the Texas Insurance Code, breach of contract, negligence, and tortious breach of duty of good faith and fair dealing. Wise seeks punitive damages and attorneys’ fees.

For any questions, feel free to contact Christian Dennie at cdennie@bgsfirm.com.