SITUATION: A The purchaser of certain property alleged professional negligence and breach of fiduciary duty against their real estate agent. The client/purchaser was given fraudulent wire instructions after the agent’s personal email account, which was used for all communications regarding the transaction with the client, was hacked. It was further alleged that the Insured should have been aware of this known scam.
OUTCOME: Settlement and defense exceeded $150k and done more to protect the client from it.
SITUATION: A TPA is responsible for obtaining and processing medical claims for its client’s group health plan. The heath plan has an annual individual expense limit of $75,000. When an individual’s annual expenses exceed this amount, the stop loss carrier reimburses the health plan. The stop loss policy requires all bills to be paid prior to the expiration of their policy. The TPA fails to process and pay bills on a timely basis. The TPA submits a request to the stop loss carrier, after the expiration of the stop loss policy, to reimburse all expenses exceeding the individual expense limit of $75,000. As a result, the stop loss carrier denies all expenses above $75,000.
OUTCOME:The client files suit against the TPA for negligence in the performance of professional services.
SITUATION: A leaseholder of a property granted the exclusive use and possession of all common laundry rooms on a property alleges breach of contact and wrongful eviction after the property was sold. Specifically, the property was sold subject to the claimants lease, but the new property owner and the Insured property manager evicted the claimant, removed all of their equipment, and replaced it with the Insured’s laundry equipment.
OUTCOME: Settlement and defense for the claim against the Insured exceeded $150,000.
SITUATION: CBreach of Contract
A leased employee of a maintenance service company while working for a customer falls into a holding tank and dies of asphyxiation. The employee’s estate sues the customer for damages. The customer files suit against the leasing company because the leasing company failed to purchase workers’ compensation. The customer alleges that the leasing company agreed to indemnify them for any damages resulting from workers’ compensation claims. The customer argues that the service company breached its agreement to procure the proper coverages and, as a result, should indemnify them for any damages attributable to the maintenance employee’s death.
OUTCOME: Total defense costs and settlement exceeded $150,000.
SITUATION: A company alleges that the Insured breached its fiduciary duty by failing to provide adequate advice regarding the riskiness on the purchase of assets, the amount and likelihood of a termination fee, and the conflict that its ownership had with state law.
OUTCOME: Settlement and defense exceeded $500k.
SITUATION: A bank alleges that the Insured conducted a negligent appraisal of a debtor’s collateral. When the bank declared that its credit facility was in default, there was not enough collateral to repay the debt.
OUTCOME: Settlement and defense exceeded $750,000.
