News Summary
Berkshire Hathaway Direct Insurance has filed a complaint in Tennessee regarding alleged negligence by 7 Star Hospitality in managing hotel damage. The dispute centers on damage mitigation efforts related to insurance claims. The case highlights significant mold growth discovered at the hotel and ongoing risks that remain despite some financial assistance from the insurer. Legal proceedings are in the early stages as both parties work through the complexities of the insurance policy obligations.
Tennessee: Berkshire Hathaway Direct Insurance Seeks Court Ruling in Hotel Damage Dispute
Berkshire Hathaway Direct Insurance Company has filed a complaint in the U.S. District Court for the Middle District of Tennessee regarding alleged failure by 7 Star Hospitality to mitigate damage to its hotel in Mt. Juliet, Tennessee. The complaint, submitted on August 25, 2025, centers around a commercial property insurance policy and is compounded by a rental mortgage held by Wilson Bank & Trust.
Details of the Dispute
The current dispute stems from a reported loss between October 5, 2023, and February 15, 2024. Berkshire Hathaway claims that 7 Star Hospitality neglected their duty under the insurance policy to take reasonable measures to prevent additional damage following the reported loss. Evidence presented in the complaint includes timelines and reports from independent adjusters, alongside communications with 7 Star.
On March 1, 2024, independent adjuster Steve Bluemel inspected the hotel and found significant mold growth in several rooms along with water still present within the property. Despite the ongoing issues, 7 Star had not initiated any damage mitigation steps by March 4, 2024, even after hiring a public adjuster.
Property Inspection and Mitigation Efforts
On March 15, 2024, 7 Star opted to engage Vovo Design, LLC for mitigation services, but as of March 22, little had been accomplished. Berkshire Hathaway stepped in to provide $190,000 for immediate expenses, including mortgage payments, but by April 1, it was evident upon their inspection that mitigation efforts were lacking. The property continued to pose risks with residual water damage and inadequate security.
By April 3, ServPro was identified to assist; however, reports consistently highlighted insufficient mitigation. A public adjuster representing 7 Star’s interests was announced on April 8, 2024, which later led to further paperwork and negotiations surrounding the claim.
Financial Settlements and Further Claims
After extensive correspondence and two Reservation of Rights letters sent on July 23 and December 20, 2024, Berkshire Hathaway made payments amounting to over $1 million for building and business income loss claims on July 26, 2024. However, following this, 7 Star’s public adjuster submitted further claims for additional advances regarding mortgage and business interruption losses that totaled nearly $681,000.
Legal Implications and Next Steps
Berkshire Hathaway’s complaint seeks a judicial declaration asserting that the insurance company has fulfilled its obligations under the policy. They assert that further responsibility toward claims from 7 Star or its mortgage holder, Wilson Bank & Trust, should not fall upon them. Additionally, the insurer requests reimbursement for costs and attorney fees incurred during this protracted claim process.
Case Status
The proceedings are currently at an initial stage, and no final ruling has been made by the court as of yet. Both parties will continue to navigate the claims process as they seek resolution to this issue stemming from the obligations under the original insurance policy.
Conclusion
As the legal process unfolds, the focus will remain on the contractual obligations and responsibilities established in the insurance agreement between Berkshire Hathaway and 7 Star Hospitality. The ongoing litigation underscores the complexities often inherent in commercial property insurance claims and the critical importance of property management and damage mitigation by insured parties.
Deeper Dive: News & Info About This Topic
- WCS Employees Will Pay for Insurance
- Tennessee Berm Order Threatens Mt. Juliet Residents
- Mt. Juliet Tweaks Central Pike Lebanon Road Plans
- Google Search: Mt. Juliet Tennessee
- Mt. Juliet Sets Property Tax at 29 Cents
- Encyclopedia Britannica: Property Taxes
Author: STAFF HERE BRISTOL WRITTER
The BRISTOL STAFF WRITER represents the experienced team at HEREBristol.com, your go-to source for actionable local news and information in Bristol, Sullivan County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Bristol Rhythm & Roots Reunion, NASCAR races at Bristol Motor Speedway, Border Bash concert series, and the Hot Bristol Night Car Show. Our coverage extends to key organizations like the Bristol Chamber of Commerce, Believe in Bristol, and the Birthplace of Country Music, plus leading businesses in healthcare, manufacturing, and entertainment that power the local economy such as Ballad Health, Strongwell, and Bristol Motor Speedway. As part of the broader HERE network, including HEREChattanooga.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
