Mt. Hawley Insurance Sues Hanover American Over Rejected $900,000 Settlement Offer After Paying $1,000,000 in Florida Wrongful Death Case

On October 2, 2026, Mt. Hawley Insurance Company filed a federal lawsuit in the U.S. District Court for the Southern District of Florida against The Hanover American Insurance Company, The Hanover Insurance Company and Schmid Construction, Inc. Mt. Hawley alleges that Hanover American rejected a $900,000 settlement offer in an underlying wrongful death case without telling The Shul or Mt. Hawley, and that Mt. Hawley later had to pay $1,000,000 of its own policy limit to end that case. It wants that money back, plus attorneys’ fees and interest.

This is not a consumer class action. There is no settlement fund, no claim form and no claim deadline for the public in Mt. Hawley Insurance Company v. The Hanover American Insurance Company et al. It is a dispute between insurers and a contractor over who should have paid. Everything below about the underlying events is an allegation made by Mt. Hawley. No court has ruled on it, and no judgment has been entered against any defendant.

Quick Facts: Mt. Hawley Insurance Company v. The Hanover American Insurance Company

Detail	Information
Case name	Mt. Hawley Insurance Company v. The Hanover American Insurance Company et al.
Case number	1:2026cv26943
Court	U.S. District Court for the Southern District of Florida
Filed	October 2, 2026
Plaintiff	Mt. Hawley Insurance Company
Defendants	The Hanover American Insurance Company; The Hanover Insurance Company; Schmid Construction, Inc.
Nature of suit	Insurance
Jurisdiction	Diversity, 28 U.S.C. § 1332
Jury demand	Demanded by plaintiff
Amount sought	$1,000,000, plus attorneys’ fees and interest
Earlier settlement offer at issue	$900,000 (October 13, 2020)
Later demand in underlying case	$6,000,000 (August 2022)
Class action?	No
Public claim form or deadline?	None
Current status	Complaint filed; no rulings reported

Why Did Mt. Hawley Insurance Company Sue Hanover American and Schmid Construction?

Mt. Hawley says it paid $1,000,000 to settle a wrongful death lawsuit that, in its view, Hanover’s coverage should have paid for first. The underlying case grew out of a fatal accident on July 18, 2019. According to the complaint, a construction worker was electrocuted while installing rebar near high-voltage power lines at a synagogue project, The Shul of Bal Harbour, in Miami-Dade County, Florida. Schmid Construction, Inc. was the general contractor. The worker’s estate sued The Shul and Schmid.

How Was the Insurance Coverage Layered Between Hanover American, Hanover Insurance and Mt. Hawley?

The whole case turns on who was supposed to pay first. As Mt. Hawley describes it:

1. The Hanover American Insurance Company wrote primary commercial general liability coverage with a $1,000,000 per-occurrence limit, with The Shul as an additional insured under Schmid’s coverage.
2. The Hanover Insurance Company provided $5,000,000 in excess coverage above that primary layer.
3. Mt. Hawley Insurance Company had issued The Shul its own policy with a $1,000,000 per-occurrence limit, which Mt. Hawley alleges was excess to the Hanover coverage.

On Mt. Hawley’s account, both Hanover policies were supposed to respond before its policy did.

What Happened to the $900,000 Settlement Offer Hanover American Allegedly Rejected?

On July 8, 2020, Mt. Hawley says it asked Hanover and others to defend The Shul. On July 10, 2020, Hanover American allegedly agreed to take over the defense.

On October 13, 2020, the worker’s estate allegedly offered to settle its claims against The Shul for $900,000. That is less than Hanover American’s $1,000,000 primary limit. Mt. Hawley alleges Hanover American did not tell The Shul or Mt. Hawley about the offer and rejected it. If accurate, a case that could have settled inside the primary limit stayed open for nearly two more years.

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What Did Hanover American Allegedly Say About Its Duty to Communicate Settlement Offers?

Mt. Hawley alleges that in an October 2021 letter, Hanover American took the position that it had no duty to communicate settlement opportunities to The Shul and that it controlled settlement at its sole discretion. This is Mt. Hawley’s description of Hanover’s position, not a finding by the court. Hanover has not yet responded in the federal case.

How Did the $900,000 Offer Turn Into a $6,000,000 Demand Against The Shul?

By August 2022, the estate was allegedly demanding $6,000,000. Mt. Hawley says it pressed Hanover American to resolve the case. The complaint alleges Hanover American declined, relying in part on a dispute involving H&M Builders, LLC, and on October 4, 2022 rejected the $6,000,000 demand without a counteroffer.

Why Did Mt. Hawley Pay Its $1,000,000 Policy Limit to The Shul’s Estate Claimants?

Mt. Hawley alleges that on October 4, 2022 it told Hanover it would tender The Shul’s $1,000,000 policy limit in exchange for a full release of The Shul, and made the offer on October 7, 2022. The estate allegedly accepted on October 11, 2022. Mt. Hawley then asked Hanover American to reimburse it and, according to the complaint, was refused. Hanover American separately paid $500,000 to resolve the estate’s claims against Schmid.

In plain terms, Mt. Hawley says the carrier that was supposed to pay first paid $500,000 on one claim, while the carrier it says was supposed to pay last paid $1,000,000.

Mt. Hawley v. Hanover American Timeline of Key Dates

Date	Event (as alleged unless noted)
July 18, 2019	Construction worker fatally electrocuted at The Shul of Bal Harbour project
July 8, 2020	Mt. Hawley requests that Hanover and others defend The Shul
July 10, 2020	Hanover American agrees to assume The Shul’s defense
October 13, 2020	Estate offers to settle with The Shul for $900,000
October 2021	Hanover American states it has no duty to communicate settlement opportunities to The Shul
August 2022	Estate demands $6,000,000
October 4, 2022	Hanover American rejects the $6,000,000 demand; Mt. Hawley notifies Hanover of its plan to tender its limit
October 7, 2022	Mt. Hawley offers its $1,000,000 policy limit for a release of The Shul
October 11, 2022	Estate accepts the $1,000,000 offer
October 2, 2026	Mt. Hawley files federal complaint (confirmed on the court docket)

What Is Mt. Hawley Asking the Southern District of Florida Court to Order?

Mt. Hawley seeks recovery of the $1,000,000 it paid, plus attorneys’ fees and interest. The docket lists the complaint as Filing 1 with 17 exhibits attached. The specific causes of action are set out in the complaint itself, which is available through PACER. The court has not decided whether Mt. Hawley is entitled to anything.

What Does Florida Law Generally Say About an Insurer’s Duty When a Settlement Offer Falls Within Policy Limits?

The following is general background, not a description of the claims Mt. Hawley chose to plead. Florida courts have long held that a liability insurer controlling the defense owes its insured a duty of good faith, including a duty to act with due regard for the insured’s interests when a settlement is possible. Boston Old Colony Insurance Co. v. Gutierrez, 386 So. 2d 783 (Fla. 1980), is the case most often cited for that standard. Courts have also, in some circumstances, allowed an excess insurer that paid a loss to step into the insured’s position through equitable subrogation. Whether those principles help Mt. Hawley here depends on the policy language and the facts, which the court has not yet examined.

Can Individual Consumers File a Claim in the Mt. Hawley v. Hanover American Case?

No. The $900,000 figure was an offer made inside the underlying wrongful death case, and the 1,000,000figureiswhatMt.Hawleysaysitpaidtoresolvethatcase.Neitherismoneyavailabletothepublic.Anyonesearchingfora”900K Mt. Hawley settlement” should not confuse this lawsuit with a consumer class action settlement.

Does the Mt. Hawley Lawsuit Reopen the Worker’s Wrongful Death Claim Against The Shul and Schmid Construction?

It does not appear to. The estate allegedly accepted $1,000,000 from Mt. Hawley in October 2022 in exchange for releasing The Shul. The 2026 case is about who should ultimately bear that payment among insurers and Schmid Construction. For background on how these claims work, see What Is A Wrongful Death Lawsuit? What You Must Know Before Filing.

What Happens Next in Mt. Hawley Insurance Company v. The Hanover American Insurance Company?

The federal docket shows only the complaint as of its last retrieval on October 2, 2026. Hanover American, The Hanover Insurance Company and Schmid Construction will have the chance to respond, and the case may move through motions, discovery and then trial or settlement. Two questions are likely to matter most: whether Hanover’s coverage was meant to pay before Mt. Hawley’s policy, and whether Hanover American had to tell The Shul and Mt. Hawley about the $900,000 offer before turning it down. Updates will be added here as the docket develops.

Mt. Hawley Insurance Company v. Hanover American FAQ

Is there a $900,000 Mt. Hawley settlement the public can claim?

No. The $900,000 figure is a settlement offer the worker’s estate allegedly made on October 13, 2020 in the underlying wrongful death case. It is not a public fund.

Did Mt. Hawley Insurance Company really pay $1,000,000?

According to Mt. Hawley’s complaint, yes. It alleges the estate accepted its $1,000,000 offer on October 11, 2022 in exchange for a release of The Shul.

Why is Mt. Hawley Insurance Company suing The Hanover American Insurance Company?

Mt. Hawley alleges Hanover’s coverage should have paid before its own, and that Hanover American rejected the $900,000 offer without telling The Shul or Mt. Hawley. It is seeking reimbursement of $1,000,000, plus fees and interest.

Did Hanover American illegally reject the $900,000 settlement offer?

That has not been established. These are Mt. Hawley’s allegations, and no court has ruled on whether Hanover American breached any duty.

Is Mt. Hawley Insurance Company v. The Hanover American Insurance Company a class action?

No. It is a single insurance dispute between Mt. Hawley, two Hanover entities and Schmid Construction, Inc.

Has a judge ruled that Hanover owes Mt. Hawley $1,000,000?

No. The complaint was filed on October 2, 2026, and no ruling has been reported.

Which court is hearing the Mt. Hawley case, and what is the case number?

The U.S. District Court for the Southern District of Florida, case number 1:2026cv26943.

For general information only; not legal advice. AllAboutLawyer.com is not a law firm.

Sources: (1) Justia federal docket, MT. Hawley Insurance Company v. The Hanover American Insurance Company et al., No. 1:2026cv26943 (S.D. Fla.), Filing 1 (Complaint), filed October 2, 2026. (2) Published summaries of the complaint’s allegations. (3) Boston Old Colony Insurance Co. v. Gutierrez, 386 So. 2d 783 (Fla. 1980).

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. Case name, number, parties, filing date, nature of suit, jurisdiction and jury demand verified against the Southern District of Florida docket (via Justia); underlying events are allegations from the complaint as summarized in published reports, as of October 6, 2026. Last Updated: October 6, 2026.