Confidential
Verdict – $2,130,260Facts
In 1997, the cross-complainant oil company entered into a Branded Jobber distribution agreement with the cross-defendant distributor who purchased gasoline for sale to independent dealers for distribution under the cross-complainant's trade name. The agreement required the distributor to obtain $1 million of liability insurance, including products liability coverage, and for the oil company to be added as an additional insured on the policy. A fire occurred at a service station which purchased fuel products from the distributor resulting in severe burns to a customer. The oil company was sued for products liability and negligence by the plaintiffs. The distributor did not have any insurance at the time of the accident. The oil company settled with the plaintiffs after extensive litigation and brought a cross-claim for breach of contract against the distributor.
Result
The court entered summary judgment in favor of the cross-complainant holding that the cross-defendant had a duty under the contract to obtain insurance which provided coverage for the cross-complainant's own negligence and strict liability. The parties submitted the cross-complainant's damages claim for attorney's fees, costs and interest to the court by motion. The court awarded the cross-complainant $1 million for lost indemnity under the required insurance policy, and $965,954 in attorneys' fees, expert fees and costs incurred in the defense of the plaintiff's claims and the prosecution of contribution claims against various co-defendants. The court also awarded $164,306 in prejudgment interest.
Other Information
The distributor and the oil company have filed consolidated actions against the broker.
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