Ronald M. Ford v. Golden Eagle Insurance Company
Published: Nov. 26, 1994 | Result Date: Nov. 3, 1994 | Filing Date: Jan. 1, 1900 |Case number: C9302843 – $750,000
Judge
Court
Contra Costa Superior
Attorneys
Plaintiff
Defendant
Jon P. Kardassakis
(Lewis, Brisbois, Bisgaard & Smith LLP)
Facts
Golden Eagle Insurance Company provided a ranch package insurance policy to Ronald M. Ford, individually and dba Pine Creek Equestrian Center. The policy excluded liability for bodily injuries arising from an automobile accident. In the underlying action, on September 18, 1992, a 10-year-old girl fell or jumped off, and was run over by the ranch's flatbed truck. The truck was allegedly used to deliver hay to the horses on the ranch. The underlying case settled for $1,000,000. Golden Eagle paid $750,000; Ford paid $235,000; and Allstate paid $15,000 on a separate auto policy. In the instant case, Golden Eagle and Ford disputed coverage between themselves and each sought reimbursement from the other. Plaintiff Ford sued Defendant Golden Eagle for bad faith. Ford also sued Defendant Ronald Dumm, the insurance broker who sold him the policy, as well as Dumm's employer, Defendant Rollins Burdick Hunter of Northern California, for professional negligence and breach of fiduciary duty.
Settlement Discussions
Golden Eagle contends that they initially indicated that they would split the $1,000,000 underlying settlement with Ford and then walk away and that Ford initially demanded $235,000 plus attorney fees. Golden Eagle further contends that during trial, they were willing to negotiate for a note from the insured, secured by deed of trust on the ranch, and that Ford reduced their initial demand to a "walk-away." Golden Eagle also contends that there were no demands or offers exchanged with the brokers.
Damages
(As claimed by Plaintiff/Cross-defendant Ford): $235,000 for reimbursement of underlying settlement. (As claimed by Defendant/Cross-complainant Golden Eagle): $750,000 for reimbursement of underlying settlement.
Injuries
(Underlying action): closed head injury; left side hemiparesis; and fractured hip.
Result
The jury found in favor of Ford (liability only) on his claim against the brokers for breach of fiduciary duty in failing to do more to adequately protect the ranch; the jury further found negligence against the brokers but no causation. The amount of damages against the brokers will be determined in a subsequent trial.
Other Information
The instant case was bifurcated, tried on coverage issues only against Golden Eagle and liability only against the brokers. Evidence established that the flatbed truck was taken off the premises to be filled with gas and to transport fuel onto the premises for other ranch vehicles. The Court granted a $750,000 directed verdict in favor of Golden Eagle on its cross-complaint against Ford. The Court subsequently found that the truck was used primarily to transport cargo and no independent cause.
Deliberation
1.5 days
Poll
not disclosed
Length
8 days
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