Confidential
Settlement – $327,500Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
William C. Price
(Quinn, Emanuel, Urquhart & Sullivan LLP)
Facts
Plaintiff insurance carrier issued excess Workers' compensation insurance policies to Defendant corporation at the request of its broker. The original dates of issuance were April 1 of 1989 and April 1 of 1990. The dollar amount of the payroll was in excess of $25,000,000. Policies were on an "estimated premium" basis, whereby the insured paid the estimated amount (minimum premium) at the inception of the policy, which was to be adjusted after the end of the policy period, based upon actual payroll. An audit was completed showing an additional premium in the amount of $434,992 was owed. After the insured provided documentation showing that a portion of the employees were covered under another policy, this amount was reduced to $361,000. Defendant refused to pay.
Settlement Discussions
Plaintiff carrier contends its demand was $350,000; Defendant corporation offered $250,000; and Cross-defendant broker offered $25,000.
Damages
Unpaid premium in the amount of $434,992.
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390