Press Release May 23, 2016

Mohawk Prevails in Challenge to $70 Million Jury Verdict

Alston & Bird client Mohawk Industries, Inc., has prevailed in an appeal by Arizona Chemical Company, LLC, challenging a $70.1 million jury award in a commercial dispute.

On May 20, 2016, Florida’s First District Court of Appeal upheld the award against Arizona Chemical, ruling that Mohawk's evidence at trial was sufficient to justify the jury’s verdict.

The damages, which now total more than $96 million, marked the largest commercial jury verdict in Florida in 2014 and was featured as one of the largest verdicts in the country in The National Law Journal’s “Top 100 Verdicts” of the year.

The underlying matter arose in 2011, when Mohawk – the world’s largest flooring company – sued supplier Arizona Chemical for providing Mohawk with defective resin. In March 2014, a jury in Florida’s Fourth Judicial Circuit found in Mohawk’s favor and awarded the company $70.1 million in damages. In appealing the verdict, Arizona Chemical argued in part that Mohawk had not provided sufficient evidence establishing that the resin was defective and caused Mohawk to suffer damages. Writing for the three-member appeals court, Judge Stephanie Ray disagreed and affirmed the jury verdict and subsequent trial court judgment.

Representing Mohawk are Alston & Bird partners Doug Scribner and Daniel Norris and associates Jason Rottner and Max Marks of the firm’s Litigation & Trial Practice Group.

The case is Arizona Chemical Co. LLC v. Mohawk Industries Inc. et al., case number 1D15-4079, in the First District Court of Appeal of the State of Florida.
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Nicholas Clarke
Senior Communications Manager
Phone: 212.210.1222

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