Gary Lampert v. Evanston Insurance Company
Published: Oct. 7, 2003 | Result Date: Sep. 5, 2003 | Filing Date: Jan. 1, 1900 |Case number: CV017913CAS Verdict – $0
Judge
Court
USDC Central
Attorneys
Plaintiff
Defendant
Terry A. Rowland
(Demler, Armstrong & Rowland LLP)
Experts
Plaintiff
Richard J. Masters
(technical)
Defendant
Andrew J. Waxler
(Kaufman, Dolowich & Voluck LLP)
(technical)
Facts
The plaintiff, Gary Lampert, an attorney, obtained an errors and omissions policy with the defendant in 1998 and renewed it twice for coverage through December 2001. In March 2001, the plaintiff's client, The Lutheran Synod Foundation, discovered that he had converted $1.9 million from an estate which the Foundation had hired the plaintiff to administer. The plaintiff tendered the claim to the defendant, which hired coverage counsel to investigate the claim and advise on coverage. The defendant's counsel discovered that the plaintiff had a recent State Bar Discipline (Private Reproval 1979) and asked the company if that had been disclosed in his original application. Upon learning that the reproval had not been disclosed, the defendant rejected coverage and requested the plaintiff to agree to voluntarily rescind the policy. In response, the plaintiff sued for bad faith. In the underlying case, the Foundation obtained a judgment for $1.5 million plus interest and attorney's fees via summary judgment after a court appointed receiver traced the Foundation's money through the plaintiff's accounts, determining that he had used it to repay five other clients' accounts and distributed the balance to himself, his ex-wife, girlfriend and for business and personal expenses.
Settlement Discussions
The Foundation demanded the full amount of its claimed damages, reduced to $1.8 million at the beginning of trial. The defendant offered $50,000 with an indication of low six figures if the Foundation would move off its demand.
Damages
The plaintiff failed to appear at trial to argue for personal damages. The Receiver and Foundation introduced its judgment against the plaintiff and requested $2.3 million in accumulated losses.
Result
Defense verdict on the breach of contract claim. The trial court, hearing the defendant's equitable rescission cross-complaint, also ordered the policies rescinded for material misrepresentation in the plaintiff's application.
Deliberation
three hours
Poll
8-0
Length
eight days
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390