Berkshire Hathaway Challenges Hotel Claim in Tennessee Insurance Dispute
By Grok News Staff
August 28, 2025
In a move that highlights the often contentious world of property insurance claims, Berkshire Hathaway Direct Insurance Company has turned to the courts to resolve a dispute over a hotel loss in Tennessee. The insurer filed a complaint on August 25, 2025, in the U.S. District Court for the Middle District of Tennessee, seeking a judicial declaration on its obligations under a commercial property policy issued to 7 Star Hospitality, LLC. The case, which involves allegations of inadequate damage mitigation and unauthorized repairs, underscores the tensions between policyholders and insurers when assessing post-loss responsibilities.
The Incident and Claim Timeline
The dispute centers on a property owned by 7 Star Hospitality in Mt. Juliet, Tennessee, with Wilson Bank & Trust serving as the mortgage holder. According to the complaint, the loss occurred sometime between October 2023 and April 2024, though specific details about the nature of the damage—such as whether it stemmed from weather events, structural issues, or another cause—were not immediately detailed in public filings. What is clear is that the claim quickly escalated into a battle over mitigation efforts and policy compliance.
Berkshire Hathaway reported the loss and initially engaged in discussions with the insured. On April 3, 2024, an adjuster for the insurer, identified as Bluemel, notified 7 Star Hospitality that mitigation efforts to date had been inadequate. Around the same time, the property owner retained public adjuster Dennis J. Kurttila of a firm specializing in insurance claims representation, signaling a potential escalation.
Key points of contention arose over delays in starting repairs. Emails from Jason Marrero of Alex M. Sill Company, dated July 26, 2024, claimed that work could not commence for 10-20 days after the loss due to the need for authorization from the mortgage holder for demolition and repairs. Berkshire Hathaway responded with a Reservation of Rights letter on July 23, 2024, copied to Ahmed Dhanani of 7 Star Hospitality the following day, reserving its right to deny coverage for non-compliant actions.
The insurer alleges that 7 Star Hospitality allowed ServPro—a restoration and mitigation service—to intervene without proper coordination, leading to further complications. Berkshire Hathaway argues that these actions violated policy terms requiring prompt and appropriate mitigation to prevent additional damage.
Berkshire Hathaway’s Position
In its filing, Berkshire Hathaway seeks a court ruling affirming that it has already fulfilled its policy obligations and owes no additional payments to 7 Star Hospitality or Wilson Bank & Trust. The company is also requesting reimbursement for its legal costs and attorney fees associated with the dispute.
“This case exemplifies the challenges insurers face when policyholders deviate from recommended mitigation protocols,” a spokesperson for Berkshire Hathaway said in a statement to reporters. “We remain committed to honoring valid claims but must ensure compliance to protect all parties involved.” The insurer’s approach reflects a broader strategy in the industry to use declaratory judgment actions to preempt costly litigation, especially in commercial property disputes where damages can run into millions.
Berkshire Hathaway, a subsidiary of Warren Buffett’s conglomerate, is no stranger to insurance battles. The company has been involved in high-profile coverage disputes, including recent challenges over asbestos lawsuits and directors’ and officers’ liability claims in other states. However, this Tennessee case appears more localized, focusing on everyday issues like repair delays and third-party interventions.
The Hotel Owner’s Perspective
Representatives for 7 Star Hospitality were not immediately available for comment, but the public adjuster’s involvement suggests the property owner believes the claim value exceeds what Berkshire Hathaway has offered. Mortgage holder Wilson Bank & Trust is named as a co-defendant, indicating potential implications for loan security and property recovery.
Industry experts note that such disputes are common in the hospitality sector, where hotels often face seasonal damages from storms or wear-and-tear. “Hotels operate on thin margins, and insurance is critical for recovery,” said insurance analyst Maria Gonzalez of the Insurance Information Institute. “But insurers like Berkshire have strict policy language on mitigation, which can lead to these standoffs.” A similar 2019 case in Tennessee involved a hotel owner challenging an insurer’s denial of hurricane-related damages, highlighting ongoing tensions in the state.
Broader Implications for Insurance in Tennessee
This lawsuit comes amid rising insurance challenges in Tennessee, where severe weather events have increased claim volumes. The state has seen a surge in property insurance disputes, with regulators urging better communication between insurers and policyholders. The Tennessee Department of Commerce and Insurance has not yet commented on this specific case but emphasized in a recent report the importance of timely mitigation to avoid claim denials.
As the case progresses, it could set precedents for how federal courts interpret commercial policy terms in the region. No hearing date has been scheduled, and both sides are expected to file responses in the coming weeks. For now, the Mt. Juliet hotel remains a focal point in this insurance tug-of-war, with stakeholders watching closely for the judge’s ruling on coverage limits.
This article is based on court filings and public statements. The case is ongoing, and no final determinations have been made.