Rusty Miller v. Hayward, Tilton & Rolapp Insurance Associates Inc.
Published: Jun. 29, 2004 | Result Date: May 14, 2004 | Filing Date: Jan. 1, 1900 |Case number: 02CC18098 Verdict – $703,750
Judge
Court
Orange Superior
Attorneys
Plaintiff
Ray E. Gallo
(Gallo LLP)
Defendant
James M. Fraser
(Law Office of Anthony Schneider)
Experts
Plaintiff
Jason Jazayeri
(technical)
Elliott C. Rothman
(technical)
Defendant
Ronald Anderson
(technical)
David K. Jackson
(technical)
Facts
The plaintiff, Rusty Miller, owner of the Anaheim Hills Racquet Club, purchased the club out of bankruptcy in 2000. Before the transaction closed, he insured the building through his longtime broker, James Meger of the defendant brokerage. Miller did not know the value of the building and Meger undertook to recommend appropriate limits. Miller accepted Meger's recommendation, which was based on a stated building size of 3200 square feet, a figure that was low by more than 1500 square feet. Meger's $320,000 valuation was also based on a $100 per square foot construction cost which jibed with the analysis of Marshall & Swift, an insurance property valuation guide. These policy limits were carried forward through various policies and into the one in effect when the building burned in August 2002. The building could not be rebuilt for the policy proceeds. The subject suit followed.
Settlement Discussions
The plaintiff demanded $350,000; the defendant made a C.C.P. Section 998 offer of $115,000.
Result
Full damages awarded to the plaintiff net of 15 percent contributory negligence
Deliberation
3.5 hours
Length
seven days
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