COURT AFFIRMS DISMISSAL OF CLAIM OF FAILURE TO SECURE “BEST TERMS” AGAINST REINSURANCE BROKER
Reinsurance broker Guy Carpenter placed a “finite quota share reinsurance agreement” for Workmen’s Auto Insurance Company with PMA Capital Insurance Company. After dispute arose over the terms of the agreement, Workmen’s brought suit against Guy Carpenter, alleging, among other things, that Guy Carpenter failed to obtain the “best terms” it could have in the reinsurance market. The court granted summary judgment on the failure-to-secure-best-terms claim. After losing at trial on breach of fiduciary duty and price-fixing claims, Workmen’s appealed, arguing that summary judgment was inappropriate because the quota share agreement did not qualify as “reinsurance” at all. The appellate court affirmed, however, finding that Workmen’s improperly raised the issue on appeal, and improperly relied on trial evidence on appeal of a summary judgment ruling. It also affirmed defense verdicts for Guy Carpenter on the breach of fiduciary duty and price-fixing claims. Workmen’s Auto Insurance Co. v. Guy Carpenter & Co., Inc., No. B211660 (Cal. Ct. App. Mar. 1, 2012).
This post written by John Pitblado.
See our disclaimer.
