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SBE Obtains $2.3 Million Insurance Agent Negligence Verdict
Trial involved large commercial construction project gone awry
December 16, 2015 – Los Angeles, CA – A jury awarded Fulton Santa Rosa, a California-based construction company, $2.3 million against its insurance agent in a trial in Los Angeles Superior Court.
The Fulton Santa Rosa company purchased a medical facility in Santa Rosa, CA in 2009 planning to renovate the facility and open it as a hospital. However, in 2011 during the building process a significant amount of water damage occurred, causing a myriad of problems and delays, costing the company millions. The trial centered on the insurance coverage Fulton purchased as a result of the guidance provided by its insurance agents. The executives at Fulton were led to believe they had purchased the proper coverage needed to take care of any problems that might occur during the course of construction on the project. Unfortunately the policy was insufficient and the company was forced to fund all of the necessary repairs without the assistance from its insurer, creating a variety of economic challenges.
A jury sided with Fulton, finding that the agents were negligent in providing proper guidance to the company which led to severe economic losses and awarded the plaintiffs $2.3 million.
“This was a complicated insurance matter involving serious coverage issues and analysis by our entire legal team,” said Ricardo Echeverria of Shernoff Bidart Echeverria LLP. “We were able to achieve a great result on behalf of our client because our lawyers were able to rise to the challenge in a nearly three year legal battle.”
The case is Fulton Santa Rosa, LLC v Sullivan Curtis Monroe Insurance Services, LLC, LASC Case No. BC499859.
The plaintiff was represented in trial by Mr. Echeverria and Kristin Hobbs, both of SBE.