Georgia Trial Attorneys Win $24 Million Verdict

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AFC Enterprises, Inc. awarded verdict of $24,295,890.40 against Executive Risk Indemnity, Inc.

This insurer wrote a $20 million policy of insurance and collected a premium for it. Sometimes, insurers must face the reality that they owe their full policy limits and live up to their contractual obligation to Georgia policyholders.

Pope, McGlamry, Kilpatrick, Morrison & Norwood, LLP, a prominent Georgia law firm specializing in civil litigation, announced today that it had won a verdict in excess of $24 million in a trial in the United States District Court for the Northern District of Georgia (AFC Enterprises v. Executive Risk, No. 04-CV-02523) Pope McGlamry's client, AFC Enterprises, Inc. (NASDAQ: AFCE) was awarded $24,295,890.40 in a judgment entered by the Honorable Charles A. Pannell, Jr. on September 21, 2007.

The lawsuit was originally brought by Executive Risk Indemnity, Inc. on August 27, 2004. Executive Risk claimed that it had no coverage obligation to AFC because AFC had allegedly made material misstatements or omissions in connection with the renewal of its 2003 directors and officer's liability insurance policy. AFC vigorously denied these allegations, and contended in a counterclaim that Executive Risk breached its contact of insurance by not covering various shareholder's and derivative lawsuits filed against AFC in 2003.

At trial, the Court found that none of AFC's officers or directors made any false, misleading, or incorrect statements to Executive Risk in connection with the renewal of AFC's directors and officer's liability insurance policy. The Court, therefore, found that AFC was entitled to recover the full limits of the policy of insurance ($20,000,000), plus prejudgment interest in the amount of $4,295,890.40.

AFC was represented at trial by C. Neal Pope, Alan G. Snipes, and David C. Rayfield of Pope, McGlamry, Kilpatrick, Morrison & Norwood, along with Richard H. Gill and George W. Walker, III of Copeland, Franco, Screws & Gill, P.A., based in Montgomery, Alabama. "Given the nature of the allegations made by Executive Risk, we felt it was important to vindicate our position at trial," said Sonny Cohen, general counsel for AFC. "We chose Pope McGlamry and Copeland Franco, as experienced trial attorneys, to accomplish this result, and we are obviously pleased with their efforts."

C. Neal Pope, lead counsel for AFC, stated, "we have enjoyed our continued relationship with AFC and are honored that they chose us to protect their rights. We believe Judge Pannell's decision is correct and fully supported by the evidence presented at trial." Mr. Pope added that the size of the verdict was not surprising. "This insurer wrote a $20 million policy of insurance and collected a premium for it. Sometimes, insurers must face the reality that they owe their full policy limits and live up to their contractual obligation to Georgia policyholders."

About Pope McGlamry Kilpatrick Morrison & Norwood, LLP
Pope, McGlamry, Kilpatrick, Morrison & Norwood, LLP, a group of Georgia trial attorneys with offices in Atlanta and Columbus, GA, is a recognized leader in the field of civil litigation. The firm specializes in business litigation, insurance litigation, and class actions suits. The firm specializes in wrongful death and catastrophic injury cases, particularly those involved with products liability or motor carrier liability. The firm has offices in Atlanta and Columbus, Georgia, and maintains a regional and national practice. For additional information, visit http://www.pmkm.com.

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