The case against adjuster Larry Wood and the firm of McLarens Toplis of North America was prompted by claims brought by six Virginia Beach hotels for damages resulting from Hurricane Bonnie in 1998.

Nationwide charged that the adjusters improperly committed them to pay $21.5 million to repair 577 damaged rooms. The Columbus-based insurer said its policy limits with hotel owner Professional Hospitality covered just $5.3 million.

The jury decided in favor of Nationwide on three claims, awarding $16.2 million.

Mr. Marsh said that prior to the verdict, the parties had a non-appealable "high/low" agreement in place, meaning that his clients could not be liable for an award amount above or below a certain limit.

He noted that Judge Algenon Marbley had refused a mistrial when the original defense attorney, Rick Wurth, became ill and he was forced to defend the suit with only one day's preparation.

According to Mr. Marsh, another defendant in the case--National Catastrophe Adjusters, which had a personnel swapping agreement with McLarens Toplis--settled before trial.

Mr. Woods, the adjuster, was found by the jury to have verbally committed to the cost of repairs as well as signing a document listing various items involved in the hotels' repair.

Mr. Woods testified that he had discussed the items and the hotel owner misunderstood, thinking he could authorize payment.