Facts

Plaintiff GroundMetrics Inc. filed suit against Wells Fargo and Wells Fargo Bank in relation to the purchase of two key person life insurance policies on its chief technology through Wells Fargo Insurance Services.

PLAINTIFF'S CONTENTIONS: GroundMetrics claimed the agent responsible for placing the policies was negligent in the preparation of both applications. In addition, after the policies were placed, GroundMetrics moved its headquarters and requested that Wells Fargo update the address on GroundMetrics's policies. Wells Fargo did not update the address on GroundMetrics's life insurance policies. As a result of these actions, GroundMetrics was never notified about pending payments due on their policies, nor were they notified when these policies lapsed for non-payment. Shortly after the policies lapsed, GroundMetrics's chief technology officer passed away. When GroundMetrics put in a claim on the insurance proceeds, they were advised that the policies had lapsed.

GroundMetrics asserted claims for negligence in the preparation of the policy applications and for failing to update the address as represented.

DEFENDANTS' CONTENTIONS: Wells Fargo disputed the allegations.

Insurer

Lincoln National (carrier of one of the key person life insurance policies). ING/Reliastar Insurance.

Settlement Discussions

During trial, plaintiff demanded $1,150,000, and defendant offered $300,000.

Damages

$1,652,253

Result

The jury found in favor of GroundMetrics and awarded $1,652,253 in damages. The jury found Wells Fargo 75 percent responsible for the injury and GroundMetrics 25 percent responsible. The net damages awarded to plaintiff were $1,239,190.

Other Information

Prior to trial, Lincoln National settled for $200,000. ING/Reliastar Insurance paid $1,000,000.

Deliberation

five hours

Poll

8-0

Length

five days