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Torts
Defamation
Breach of Fiduciary Duty

Tarkington, O'Connor & O'Neill, a Corporation v. Fireman's Fund Insurance Companies

Published: Sep. 4, 1999 | Result Date: Jun. 3, 1999 | Filing Date: Jan. 1, 1900 |

Case number: 958950 Verdict –  $3,600,000

Judge

John E. Munter

Court

San Francisco Superior


Attorneys

Plaintiff

John E. Hill
(Law Office of John E. Hill)

Michael P. Guta


Defendant

Kurt Micklow
(Brodsky, Micklow, Bull & Weiss LLP)

Jeffrey R. Parsons


Experts

Plaintiff

Anthony L. Robinson Jr.
(technical)

Thomas J. Corridan
(technical)

Thomas L. Carter
(technical)

Steven H. Gurnee
(Gurnee, Mason & Forestiere LLP) (technical)

Daniel F. Quinn
(technical)

Thomas J. Brandi
(The Brandi Law Firm) (technical)

G. Stephen Jizmagian
(technical)

Defendant

Ray L. Wong
(technical)

Ann M. Elston
(technical)

Joseph T. Anastasi
(technical)

Facts

Articles published in the San Francisco Recorder on Aug. 1, 1991, and in the Wall Street Journal on July 21, 1992, contained a statement that a time keeper or attorney for the plaintiff, Tarkington, OÆConnor and OÆNeill, a law corporation, had billed 785 hours in one month. The articles also contained numerous other statements from an audit of the bills of plaintiff that had been performed for the benefit of the defendant, FiremanÆs Fund. The plaintiff went to trial and obtained a verdict against defendant for $3 million on Oct. 11, 1996. That verdict was based upon the claim that a vice-president of FiremanÆs Fund had been the source for the material in the articles, that the 785 hours statement was defamatory, and that the other statements constituted a breach of confidence or fiduciary duty by FiremanÆs Fund as to the plaintiff. As a result of post-trial motions and an appeal, the defamation determination was upheld, but the fiduciary duty/breach of confidence claim was found not to be legally sustainable. Consequently, the Court of Appeal ordered a new trial on damages only for the defamatory statements.

Settlement Discussions

Numerous settlement discussions were held with Judge Alfred G. Chiantelli, Presiding Judge, San Francisco Superior Court. The highest offer was $750,000 and the lowest demand was $3,750,000.

Other Information

The verdict was awarded five years and three months after the case was filed. The verdict was subject to a $605,000 set off so the net judgment entered was $2,995,000. A number of experts testified as to the effect of the defamation on plaintiffÆs ability to obtain insurance defense business.

Deliberation

two days

Poll

12-0 (breach of fiduciary duty and defamation); 10-2 (no fraud); 10-2 (no unclean hands); 9-3 (damages)

Length

14 days


#96460

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