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LASC Grants Summary Judgment to Insurance Broker in Malpractice Case

May 3, 2012

The Los Angeles Superior Court granted summary judgment in favor of Murchison & Cumming’s insurance broker client. Jean M. Lawler, Nancy N. Potter and Daniel G. Pezold represented the defendant.

An attorney and his wife contracted with a construction company to perform a major demolition and remodeling on their San Marino home. Immediately after the demolition, the City of San Marino shut down the job due to lack of proper permits. Suit resulted and the contractor’s insurer denied coverage. Ultimately, the contractor settled with the couple, and assigned his claims against his insurer and the insurance broker to them. In their subsequent suit against the broker and insurer, the couple alleged that the broker was supposed to provide an insurance policy which would cover any liability and any claim that might be asserted against the contractor.

The defense brought a Motion for Summary Judgment showing that the contractor had never asked for a policy which would cover any liability, and that the insured was satisfied with the policy which the insurance broker had procured.