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Insurance
Broker Negligence
Inadequate Coverage

Alan J. Pecherer v. Sawyer, Cook & Company

Published: Sep. 14, 1996 | Result Date: Aug. 2, 1996 | Filing Date: Jan. 1, 1900 |

Case number: 749049 –  $0

Judge

H. Michael Brenner

Court

Orange Superior


Attorneys

Plaintiff

Gerold G. Williams


Defendant

Daniel J. Buckley
(Signature Resolution)


Experts

Plaintiff

Elliott C. Rothman
(technical)

Defendant

Wallace P. Clark
(technical)

Facts

On Nov. 7, 1994, plaintiff Alan Pecherer, a 40-year-old businessman, opened a furniture and art showroom by the name of Peter J's Laguna Showcase in Laguna Beach. Previously, in May 1994, the plaintiff had requested and obtained general liability, fine arts contents, business interruption and workers' compensation insurance from defendant Sawyer, Cook & Company for Peter J's Laguna Showcase. On Jan. 4 and Jan. 10, 1995, heavy rains flooded Peter J's, damaging both the inventory and the showroom. The plaintiff allegedly attempted to locate investors to help him repair the damage and restock the showroom, but he was unable to do so. As a result, Peter J's went out of business in April 1995. The plaintiff insured brought this action against the defendant insurer based on a broker negligence theory of recovery.

Settlement Discussions

The plaintiff made a C.C.P. º998 settlement demand for $97,391, which was lowered to $75,000 before trial. The defendant made a settlement offer for $15,000 approximately three weeks before trial, with an indication of more.

Damages

The plaintiff claimed approximately $100,000 in damages for the loss of contents and investment in the business.

Result

SETTLEMENT CONFERENCE: A settlement conference was held on March 15, 1996 before Judge Brenner. It did not resolve the matter.

Other Information

The verdict was reached approximately one year and one month after the case was filed.

Deliberation

40 minutes

Poll

9-3

Length

3 days


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