SunTrust Wins $40M For Defaulted Loan Coverage

Law360, New York (August 19, 2011, 6:57 PM EDT) -- A Virginia federal judge on Friday awarded SunTrust Mortgage Inc. more than $34 million in damages, along with nearly $6 million in prejudgment interest, for United Guaranty Residential Insurance Co. of North Carolina's failure to cover certain defaulted loans.

Judge Robert E. Payne ordered the defendant to pay the more than $40 million — with 0.11 percent per annum in post-judgment interest — after a July 18 bench trial on damages and prejudgment interest on SunTrust's claim that United Guaranty breached an insurance agreement by refusing...
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