Professional Liability Team Secure Summary Judgment Against Claims of Over $2M

Policyholder Has Duty to Review Policy and Terms

The professional liability claim stemmed from the agent’s handling of a request to procure a commercial property policy for a large, mostly vacant shopping mall. There were discrepancies between what the Plaintiff claimed to have requested in coverage, what was communicated between the agent and surplus lines wholesale broker, and what coverage was ultimately provided by the carrier that issued the policy. The mall was later subject to a loss, which was denied based upon certain exclusions that became the bases of this lawsuit.

Plaintiff asserted claims against the agent for negligence, negligent misrepresentation, and violations of the Texas Insurance Code. In addition to pursuing claims against the retail insurance agent, Plaintiff sued the surplus lines wholesale broker and the insurer that issued the policy at issue.

The agent’s defense focused on key legal limitations to claims against retail insurance agents. The Thompson Coe team established the policy in question had been provided to the plaintiff prior to the loss triggering a duty to review the policy and its terms. Additionally, Plaintiff acknowledged during examination it would ordinarily review such policies for accuracies but failed to so in this case.

At the second mediation, Plaintiff’s lowest demand was over $1 million. After negotiations broke down, the surplus lines broker and insurer each settled with the Plaintiff for substantial amounts, leaving just the insurance agent for trial. Before trial, however, the Court granted the Motion for Summary Judgment.

Additional support is being provided by Appellate attorney Shelby Hall in handling the appeal.