Gray·Duffy Prevents Lawsuit Against Surplus and Wholesale Lines Brokers

August 2010

Overview

Ron Mandel of Gray·Duffy’s Encino office was retained to represent Lemac & Associates’ former president, William Newton, in connection with a person most knowledgeable deposition, regarding an insurance broker malpractice case. The case was settled among the parties prior to the deposition of William Newton being taken.

Discussion

P.S. National, Inc. dba Professional Staffing v. USI Holdings Corporation, et al.

P.S. National, Inc. dba Professional Staffing was a nurse registry business that provided nurses to various medical institutions.  A registry nurse provided to a local hospital was involved in a medical malpractice case in which the patient passed away.  The hospital then tendered the defense of that underlying litigation to Professional Staffing.  Professional Staffing’s insurer denied the claim as there were no additional insured certificates on file.

During the course of the investigation, Lemac & Associates, the wholesale and surplus lines broker, alleged that it was the obligation of the retail broker to supply the additional insured certificates.  Late in the litigation, the deposition of the person most knowledgeable, William Newton, from Lemac was noticed.  Mr. Newton had retired and sold Lemac & Associates to Arthur J. Gallagher & Company.  Mr. Mandel was retained to represent Mr. Newton at the deposition by the successor company, Arthur J. Gallagher & Company. The case was resolved between the parties in litigation prior to the deposition of Mr. Newton.  Neither Lemac & Associates nor Arthur J. Gallagher & Company were named in the litigation.

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.