The plaintiff property owner alleged that the defendant brokerage firm failed to procure insurance that would have provided coverage for an underlying personal injury lawsuit. Although the broker had viable defenses to primary liability claims (based upon the plaintiff representing that the building would not be under construction until well after coverage was procured), FKB obtained pre-answer dismissal based upon the expiration of the statutes of limitations. The pivotal issue was when the plaintiff’s negligence and breach of contract claims began to accrue. The Court agreed with FKB’s argument that those claims respectively accrued when coverage was disclaimed and when the relevant policy was procured – and not when the plaintiff may pay out a settlement or judgment on the underlying claim.
If you have any questions about this decision, or the defense of attorneys, accountants, or other professionals, please contact Aaron M. Barham.