E.J. Victor wins pretrial ruling in Helene damage case against insurer

A federal judge has ruled in favor of Morganton-based high-end furniture manufacturer E.J. Victor Inc. in its fight to recover damages from Hurricane Helene, finding that the company’s insurance policy includes an exception that works in its favor.

On Wednesday, May 14, U.S. District Judge Martin Reidinger issued the ruling granting E.J. Victor Inc.’s motion for partial summary judgment, clearing the way for the company to seek $75,000 in damages from Fireman’s Fund Insurance Co.

At the heart of the dispute was whether flooding from the September 2024 storm, which caused significant damage to E.J. Victor’s Morganton facility, including structure, equipment, and inventory, was excluded under the terms of the insurance policy.

While both parties agreed the policy excludes flood damage generally, the judge pointed to a specific carve-out in the policy language that exempts damage from “named storms” — like Hurricane Helene — from that exclusion.

E.J. Victor filed a complaint against Fireman’s Fund Insurance Company on Nov. 7, 2024, for denying coverage for more than $75,000 in damages from the late-September storm. The lawsuit called for a jury trial to settle the company’s claims of breach of contract, declaratory judgment, and bad faith in denying coverage.

“Even assuming that there is a flood damage exclusion,” Reidinger wrote in the order, “the damage from Helene is excluded from the exclusion and thus is covered by the policy.”

The judge’s analysis echoed E.J. Victor’s argument that under the policy’s own definitions, Helene-related flooding should not bar the company from receiving coverage.

During the dispute, the company permanently laid off 121 employees.

“Unfortunately, the position of the insurance company has left us with no alternative but to lay off many valued and skilled employees who have worked with E.J. Victor for many years,” an E.J. Victor statement said. “We are deeply grateful to our employees who have worked tirelessly to assess and minimize the damage. We request everyone’s thoughts and prayers as we work through this disaster.”

Fireman’s Fund is represented by Jill Schaar of Troutman Pepper Locke LLP and Fielding Huseth of Moore & Van Allen PLLC. Schaar declined to comment, and Huseth was unable to be reached by press time.

E.J. Victor is represented by Cory Hohnbaum, John H. Fontham, Taylor T. Lankford, and W. Avery Green-Conrad of King & Spalding LLP. CEO Richard Oliver declined to comment.

About the company: E.J. Victor has served as a high-end furniture manufacturer in Morganton since 1990. The company is at 110 Wamsutta Mill Road, with a showroom in High Point. It was founded by three furniture veterans, Edward Phifer, Joe Manderson, and John Jokinen.

-SEB