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CONFIDENTIAL

Jul. 25, 1998

Insurance
Broker Negligence
Coverage Dispute

Confidential

Settlement –  $315,000

Judge

Stephen J. Kane

Court

Fresno Superior


Attorneys

Plaintiff

Michael J.F. Smith
(Michael J.F. Smith, APC)


Defendant

Darryl J. Horowitt


Facts

In 1994, plaintiff farm called defendant insurance broker employed by defendant insurer, and allegedly asked for coverage for aluminum irrigation pipe. The defendant broker failed to act upon the request. The pipe was subsequently damaged by agricultural chemicals. The carrier denied coverage as in excess of limits. The plaintiff brought this action against the defendants based on negligence and broker malpractice theories of recovery.

Settlement Discussions

The plaintiff made a settlement demand for $185,000. The defendant made an offer of compromise for $63,315.

Damages

The plaintiff claimed loss of aluminum irrigation pipe, valued in excess of $300,000. Per the defendant, the plaintiff claimed damages in excess of $450,000 prior to trial and demanded over $500,000 at trial.

Injuries

The plaintiff claimed loss of aluminum irrigation pipe, valued in excess of $300,000. Per the defendant, the plaintiff claimed damages in excess of $450,000 prior to trial and demanded over $500,000 at trial.

Other Information

The parties agreed to bifurcate the trial to determine the issue of whether a request for insurance was made by the plaintiff, the request that was made and whether the defendant agreed to place the insurance requested. Once the jury determined these issues, a settlement was reached. The verdict was reached approximately one year and two months after the case was filed. MEDIATION: A mediation was held on Dec. 18, 1998, before James Phillips of Phillips Group, resulting in no settlement.

Deliberation

1½ hours

Poll

12-0

Length

four days


#91330

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