A jury has ruled that a unit of Arthur J. Gallagher & Co., the fourth-largest insurance broker, must pay $175 million to South Jordan-based Headwaters Inc. for failing to pay royalties on fuel lines.
A jury said Arthur J. Gallagher's AJG Financial Services Inc. failed to pay Headwaters royalties from four alternative-fuel lines in South Carolina, Headwaters said in a statement late Friday.
The jury also said Headwaters must pay AJG $270,734 for failing to pay royalties on a financing agreement, Headwaters said. The court has not yet approved the jury's verdict.
Gallagher, based in Itasca, Ill., said in a statement that it intends to appeal the ruling.
Headwaters develops alternative-energy products. AJG Financial Services is a subsidiary that manages Arthur J. Gallagher's investments, according to the company's Web site.