Gray•Duffy Negotiates Dismissal of Lawsuit in Insurance Broker Malpractice Case

April 2010

Overview

Ronald H. Mandel obtained a dismissal with prejudice in favor of a client exchange for a waiver of costs in a lawsuit where the plaintiff was denied insurance coverage for an insurance policy involving a stolen tractor.

Discussion

Transport Funding, LLC v. Yates and Associates Insurance Services, et al.

Plaintiff Transport Funding, LLC was the loss payee in connection with an insurance policy written by Zurich Insurance Company providing coverage for a tractor power unit allegedly stolen on June 10, 2008. A claim for the value of the tractor was made to the insurer which was later denied. The basis of the denial was that the owner of the vehicle was not an insured under the terms and conditions of the policy of insurance. Our client, Yates & Associates Insurance Services, was the wholesale and surplus lines broker working with retail broker.

Yates & Associates obtained a policy of insurance effective September 28, 2007. All of the information in connection with ownership of the vehicle and other documentation regarding the Application for Insurance was provided by the retail broker.

During the course of the investigation, it was determined that the owner of the vehicle was Uttam Singh, but he was not identified anywhere on the policy of insurance or in any application materials. Thereafter, suit was filed on March 6, 2009 and our client was served on or about March 13, 2009.

Mr. Mandel initially made demands to the company that issued the insurance policy defending and indemnifying Yates & Associates. During the course of negotiations between Zurich corporate counsel and Mr. Mandel, Zurich agreed to pay all costs and expenses, including attorneys’ fees on behalf of Yates & Associates from the date of tender.

It was also established with Plaintiff Transport Funding counsel, that the plaintiff did not have a viable cause of action and a dismissal with prejudice was filed on behalf of Yates & Associates.

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.