Two eastern North Carolina tobacco farmers have settled a federal lawsuit against Hudson Insurance Company to recover arbitration costs and damages after a bitter bad-faith dispute.
David and Samuel Cox —who farm flue-cured tobacco across Craven, Greene, Lenoir, and Pitt counties—filed the lawsuit in the U.S. District Court for the Eastern District of North Carolina.
The legal battle began when Hudson Insurance attempted to slash the farmers' recovery payouts in half, specifically targeting a dispute over $126,322 because of shared bank accounts.
While the court records show a final settlement has been reached to cover the damages and legal fees, the exact terms of the financial agreement remain confidential.
