Progressive to Pay Policy Limits in Fatal Boat Crash That Involved Murdaugh’s Son

Progressive Insurance will pay $500,000, the policy limits, to the family of a young woman killed in a 2019 boat crash involving Alex Murdaugh’s youngest son, essentially ending the family’s legal actions in the tragedy.

Progressive, which insured the boat allegedly driven by the now-deceased Paul Murdaugh, had balked at paying on the policy until the elder Murdaugh was dropped as a defendant in the suit brought by the parents of 19-year-old Mallory Beach, who died in the boat crash, according to multiple news reports.

Beach’s family in 2023 agreed to wait on the insurance payout so that multimillion-dollar lawsuits against other defendants, including a convenience store that sold alcohol to the younger Murdaugh, could be settled, the Charleston Post and Courier news site reported. Alex Murdaugh’s assets have now been liquidated and Progressive agreed to pay on the boat policy, news reports and court records show.

The Hampton County Circuit Court’s Oct. 14 settlement order can be seen here.

Paul Murdaugh, 19 at the time, had a blood-alcohol level that was more than 0.28% alcohol after the crash, more than three times the legal limit, CBS News reported. He had used his older brother’s identification card to buy alcohol just before the boat crash.

Two years later, just days before a judge was scheduled to decide if Alex Murdaugh must disclose his financial information, Paul and his mother were murdered at the family hunting lodge. Alex Murdaugh was convicted of the murders and is now serving a life sentence.

The sensational case has made headlines around the world. The lawsuit settlement, in which the convenience store agreed to pay the bulk of the damages, and has been cited as an example of South Carolina’s joint-and-several statute, which some say has caused establishments’ liquor liability insurance premiums to rise to unaffordable levels in the last few years. The convenience store in August filed suit against its own insurance carriers, Amerisure Insurance Co. and Utica Mutual Insurance.

Progressive, Bars Settle in SC DUI Crash That Killed Bride on Wedding Night

Meanwhile, a federal court this month rejected Alex Murdaugh’s request to throw out his 40-year sentence for stealing from clients and his law firm. The disgraced South Carolina lawyer said his punishment is a decade longer than what prosecutors recommended, the Associated Press reported.

U.S. District Judge Richard Gergel said in April that he chose a harsher prison sentence because Murdaugh stole from “the most needy, vulnerable people,” clients who were maimed in wrecks or lost loved ones and had placed all their problems and all their hopes with the now disbarred attorney.

The U.S. Fourth Circuit Court of Appeals decided Tuesday to dismiss the appeal, saying in a two-page ruling that when Murdaugh agreed to plead guilty, he waived his right to appeal except in extraordinary circumstances, and a harsher-than-expected sentence didn’t count.

Murdaugh’s lawyers said they are now considering their options. The 40-year federal sentence has been considered a backstop, in case the 56-year-old Murdaugh wins a separate appeal of the life sentence he’s serving in a South Carolina prison for the killings of his wife and son.

Murdaugh testified in his own defense at trial, adamantly denying that he shot his family. The South Carolina Supreme Court agreed to consider whether his murder convictions should be tossed out because his lawyers said a clerk may have tampered with the jury.

In the federal theft case, Murdaugh’s lawyers said his right against cruel and unusual punishment under the U.S. Constitution was violated because Gergel ignored the 17 1/2 years to just under 22 years in prison recommended by federal agents and the 30 years suggested by prosecutors when he sentenced Murdaugh to 40 years.

In response to his appeal, federal prosecutors noted simply that when Murdaugh agreed to plead guilty, he signed a document saying he wouldn’t appeal unless prosecutors lied or his defense attorneys were inadequate.

Murdaugh admitted that he stole from his clients in wrongful death and injury cases. In handing down the stiff sentence, Gergel mentioned stealing from a state trooper who was injured on the job and a trust fund intended for children whose parents were killed in a wreck.

Those people “placed all their problems and all their hopes” with their lawyer, Gergel said.

Murdaugh’s attorneys compared his case to the 25 years in prison for crypto entrepreneur Sam Bankman-Fried and the 11-year sentence handed down to Theranos CEO Elizabeth Holmes, saying they stole billions while Murdaugh merely stole millions.

But the victims in those cases were investors, whereas Murdaugh stole from vulnerable people who trusted him to protect their legal interests.

Even though this federal appeal was rejected, Murdaugh’s cases will remain in appellate courts for years.

Courts haven’t even begun hearing the meat of Murdaugh’s argument that the judge in his murder trial made mistakes, for example by allowing his money thefts into evidence. That was critical to the prosecution’s argument that the killings were meant to buy sympathy and time to keep the thefts from being discovered.

Investigators said Murdaugh was addicted to opioids and his complex schemes to steal money from clients and his family’s law firm were starting to unravel when he shot his younger son, Paul, with a shotgun and his wife, Maggie, with a rifle at their home in Colleton County in 2021.

Top photo: A Murdaugh family photo. Paul is second from left. (Andrew J. Whitaker/The Post And Courier via AP, Pool).