This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.

Breach of Contract
Insurance Bad Faith
Broker Negligence

Cannon Capital Group v. Johnson & Higgins of California, et al.

Published: Apr. 29, 1995 | Result Date: Mar. 15, 1995 | Filing Date: Jan. 1, 1900 |

Case number: 568122 –  $0

Judge

James A. McIntyre

Court

San Diego Superior


Attorneys

Plaintiff

Brown B. Smith


Defendant

John D. Hershberger

Donald McGrath II


Experts

Defendant

Tim Merrill-Palethorpe
(technical)

Richard F. O'Rourke
(technical)

Thomas R. Morton
(technical)

David L. Marston
(technical)

David F. Anderson
(technical)

Facts

In the early 1980's Plaintiff Cannon Capital Group was a wind park developer which installed wind turbines manufactured by Century Turbines. To promote the sale of the wind turbines, Plaintiff desired to secure warranty insurance on the wind-turbine generators to insure against manufacturer's defects. Plaintiff engaged Defendant Johnson & Higgins of California to find that warranty insurance. Johnson & Higgins placed the warranty insurance with Northumberland General Insurance Company, a Canadian insurer. One year later, Northumberland was insolvent and, as a result, could not pay claims submitted by Plaintiff under the warranty insurance policy. This action was originally filed in 1986 by Cannon Capital Group and Century Turbines, a wind turbine manufacturer. Honorable Mack Lovett granted summary judgment in favor of Johnson & Higgins in March of 1991; Plaintiff Cannon appealed. Century dropped out of the case. The Fourth District Court of Appeal reversed and remanded.

Settlement Discussions

Defendants contend they offered $1,000,000 (998) and Plaintiff's gross demand was $15,000,000 reduced to a 998 in the amount of $9,800,000

Damages

$40,000,000 minus $22,000,000 received from other insurance carriers.

Other Information

This case was filed on July 9, 1986; eight years, and eight months before this result.

Deliberation

3 days

Poll

12-0

Length

6 weeks


#78402

For reprint rights or to order a copy of your photo:

Email jeremy@reprintpros.com for prices.
Direct dial: 949-702-5390