BELLEVILLE — A food production business in St. Clair County alleges a risk management services company gave negligent projections and recommendations, leading to more than $18 million in business losses.
Deli Star Corporation filed a complaint Aug. 2 in the St. Clair County Circuit Court against Marsh & McLennan Agency LLC, Jennifer L. Way, John K. Patterson and Brad G. Kosum, alleging breach of contract and other claims.
Deli Star alleges in its complaint that in August 2020, it requested the defendants' "estimated revenue projections," which were projected to be an additional $15.390 million more than the company's 2019 numbers. It claims that based on the defendants' projections and recommendations, it purchased insurance policies in the amounts of coverage for property, business automobile and workers' compensation among other coverage.
Deli Star alleges that on Jan. 11, 2021, its production facility was destroyed by a fire and declared a total loss. The plaintiff claims it only had coverage for a 37,320 square-foot building, which was actually 57,000 square feet. It further alleges it suffered more than $18 million due to the defendants' negligent risk management services.
Deli Star seeks compensation of more than $50,000 and all other proper relief. They are represented by Eric Carlson and Christopher Byron of Byron, Carlson, Petri & Kalb LLC in Edwardsville and Matt Young of Kuehn, Beasley & Young PC in Belleville.
St. Clair County Circuit Court case number 21-L-0725