Facts

In 1996, Marsh USA obtained a political risk insurance policy for Sempra Energy from National Union Fire Insurance Company of Pittsburgh, PA to protect Sempra's investment in two Argentine natural gas distribution companies. The policy provided $48.5 million in coverage. In 2002, the Argentine government stripped the Argentine gas companies of many of their operating rights, devastating the value of Sempra's investment. Sempra's insurance carrier denied coverage for Sempra's loss, and the parties proceeded to arbitration. The arbitrators denied Sempra's claim for insurance coverage, finding that the policy did not cover intangible assets (the operating rights) or currency devaluation.

Sempra filed an action against March for professional negligence, negligent misrepresentation and breach of contract.

PLAINTIFF'S CONTENTIONS:
Sempra claimed that it relied on Marsh's expertise to obtain coverage; that it orally contracted with Marsh to acquire insurance; and that Marsh failed to meet the standard of care.

DEFENDANT'S CONTENTIONS:
Marsh asserted that it did not breach the standard of care and plaintiff's claims were barred by the statute of limitations.

Damages

Sempra requested $48.5 million in damages, plus interest and $3.8 million in attorney fees.

Result

The jury awarded Sempra $48.5 million.