Insurance Agency Found Negligent for Failing to Include a Named Insured

The jury found that this insurance wholesaler was not negligent. The jury also found that although the insurance agency was negligent, there was an absence of proximate cause and a defense verdict was entered.

Reference

Plaintiff’s liability expert Thomas Laffey from Boonton, NJ. Plaintiff’s insurance coverage issue expert: Linda Barber from Princeton, NJ. Defendant insurance agency’s liability expert: John Klagholz from Sewell, NJ. Defendant insurance wholesaler’s liability expert: Armondo Casetellini from Denville, NJ. Defendant insurance wholesaler’s insurance coverage expert: John Murphy from Blue Bell, PA.

Credit Suissse First Boston Mortgage Capital vs. Philip Lehman Co., et al. Docket no. MRS-L-1704-05; Judge W. Hunt Dumont, 11-08.

Attorney for defendant insurance agency: Robert F. Ball of Wade Clark Mulcahy in Mountainside, NJ. Attorneys for defendant insurance wholesaler (found not negligent): Joseph Turchi and Mark Dianno of Salmon Ricchezza Singer & Turchi, LLP in Cherry Hill, NJ.

Commentary 

The jury found that although the insurance agency was negligent, there was an absence of proximate cause. The agency stressed that the plaintiff had not attempted to compel coverage through a declaratory judgment action. The plaintiff had endeavored to overcome this position by arguing that the combination of unintelligible language in the clause that allegedly provided coverage through a blanket endorsement, and awareness that the class was growing, rendered the risks of proceeding with the litigation even greater than entering into the settlement. The defendant in countering this position stressed that during the greater than two-year period discovery had been continuing, the plaintiff had been precluded from presenting either liability or damages experts because of missing procedural deadlines, arguing that it would be fundamentally unfair to hold the defendant responsible. Additionally, the nature of the case involving sophisticated international companies took the issue of potential sympathy out of the case.

The case(s) cited herein was(were) reprinted with the permission of the publisher Jury Verdict Review Publications, Inc. www.jvra.com

These real life claims scenarios and jury verdicts  are sponsored by InsuranceNewsletters.com, the premier provider of client newsletters for Insurance Agencies. While AgencyEquity.com will feature cases that are of interest to insurance agencies, InsuranceNewsletters.com content will focus on cases that are of interest to insurance consumers. Properly educating clients on real life situations helps them better understand the need for proper liability coverage. To learn more, go to InsuranceNewsletters.com.