Gray·Duffy Obtains Dismissal of Client in Insurance Malpractice Lawsuit

February 2011


Overview

Ron Mandel of Gray·Duffy’s Encino office successfully represented surplus and wholesale lines insurance brokers, Brown & Riding Insurance Services, in an insurance malpractice lawsuit. Brown & Riding Insurance Services’ was dismissed for a waiver of costs during the course of litigation and prior to mediation.

Discussion

Premier Transportation & Warehousing, Inc. v. Lexington Insurance Company, et al.

The plaintiff, Premier Transportation & Warehousing, Inc., a specialist in the transportation and warehousing of heavy equipment, initiated litigation against its insurer, Lexington Insurance Company, and its retail insurance broker, Tutton Insurance Services as a result of a denied insurance claim. The claim stemmed from the damage and destruction of a number of large electronic equipment pieces in transit from a trade show in Las Vegas. The equipment was damaged as a result of a sudden and unexpected rain storm, and was not properly protected on the truck. Lexington Insurance denied the claim in excess of $200,000 as a result of the insured’s failure to properly tarp and cover the equipment.

Premier Transportation filed suit against Lexington Insurance for breach of contract, breach of duty of good faith and fair dealing, and against Tutton Insurance for insurance broker malpractice in failing to obtain a proper insurance policy. Thereafter, Brown & Riding Insurance Services was brought into the litigation by Tutton Insurance, who filed a cross-complaint for indemnity in connection with the procurement of the insurance policy for Premier Transportation.

After completing the deposition of Premier Transportation’s president, Mr. Mandel convinced counsel for Tutton Insurance that there was no basis for the cross-complaint. As a result of those discussions, Tutton Insurance agre
ed to dismiss Brown & Riding a waiver of costs prior to the case being set for mediation. A dismissal with prejudice was filed by Tutton Insurance.

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.