Facts

Coast Converters Inc. purchased insurance from Federal Insurance Co. based on Aniello Insurance Agency's recommendations. Aniello was an insurance broker. Aniello procured additional coverage through Federal, setting coverage limits at $7 million. Coast suffered from losses due to the failure of the electrical system in one of its facilities. Federal failed to acknowledge coverage for the losses and made insufficient payments. Federal also filed a subrogation action against third party defendants that were later dismissed. Coast thereafter sued Aniello for breach of insurance contract for failing to procure sufficient coverage, and negligence.

Aniello settled with Coast before the trial for $275,000. Coast, additionally, recovered $2,575,000 from electrical contractors.

Damages

Coast allegedly suffered $10 million in losses.

Result

The jury rendered a verdict in favor of Coast for $4,005,866 for breach of the insurance contract and an additional $5,048,717 for violations of the Nevada Unfair Claims Practices Act. Amended judgment against Federal has been entered in the amount of $10,078,194.28 reflecting fees, costs, and prejudgment interest. The case is now on appeal with the Nevada Supreme Court.