The Maryland District Court in Montgomery County has vacated a US$22.8 million default judgment against Robert T. Koger and Molinaro Koger (MK) that was awarded to Host Hotels & Resorts in July 2012 for a discovery sanction. The judgment was vacated as part of a settlement between the Host entities and the Koger entities in which Host received $1.55 million in insurance coverage proceeds under an Errors & Omission Insurance Policy. There was no other monetary or any other consideration to the settlement.
In addition, Host, Koger and Molinaro Koger all agreed to discharge any claims, demands or liabilities related to the dispute through the settlement date. The arms-length agreement states that nothing contained in the settlement shall be deemed that any party has breached any obligation or engaged in any wrongdoing or misconduct.