The Facts

Verde Logging Company was commissioned to fell trees in conjunction with a contract they were recently awarded. When operations began, an employee mistakenly cut the wrong trees.  Instead of cutting the trees on the designated project site, he cut the trees on an adjacent, privately owned parcel. Mr. Jackson, the land owner, filed suit against Verde Logging Company.  He claimed that it should’ve been clear to the company’s employee that he was no longer on the assigned project site. The lawsuit sought compensation for property damage and the cost of the trees.

The Result

Fortunately for Verde Logging Company, the suit did not make it to trial. The case, however, was settled out of court for $44,000 plus several thousand dollars in legal fees.

Felling trees is a hazardous business and can have serious legal and monetary ramifications if done improperly. Overcutting and timber trespass are covered perils in Victor's Loggers Broad Form Property Damage endorsement. Purchasing this coverage could have saved Verde Logging Company costly settlement and legal fees.

Risk Factors

Risk Factor #1

Verde Logging Company should have properly marked the trees that were to be cut.

Risk Factor #2

Clear communication relating to project site boundaries should have been made to the employee.