Gray•Duffy Obtains Dismissal in Insurance Broker Malpractice Case

May 2009

Overview

Ronald H. Mandel obtained a dismissal with prejudice in favor of a client exchange for a waiver of costs in a multifaceted lawsuit involving Truckers’ Property and Liability Insurance.

Discussion

Santiago Communities, Inc., et al., v. Impact Solutions, et al.

Our client, All Risks, Ltd. a surplus and wholesale lines insurance brokerage, was sued in a multi-party lawsuit for causes of action, including insurance broker malpractice and theories such as negligence, fraud, breach of contract, and unfair, business practices on May 14, 2009.

On behalf of New Jack Industries, Inc., All Risks acquired workers’ compensation insurance. All Risks had been working through New Jack Industries retail broker, TWIW Insurance Services. Impact General, a subsidiary of New Jack Industries, and had entered into a contract involving employee leasing with the plaintiff, Santiago Communities, Inc.

Allegations by Santiago Communities attempted to tie in the activities of the defendant with the parent company to create a nexus for the potential imposition of liability. Such attempts failed resulting in a negotiated disposition on behalf of All Risks dismissing prejudice from the action for a waiver of costs. Plaintiff’s attorney agreed they could not establish a duty on behalf of All Risks to his client Santiago Communities. The dismissal was filed on May 18, 2010.

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.