Denver Partner John Palmeri and Associate Abigail Kregor secured summary judgment in favor of their clients, an insurance brokerage firm and two of its brokers, in a property insurance dispute relating to a luxury ski house in Beaver Creek, Colorado.
The brokers assisted the property owner in procuring an insurance policy for the property. Several years later, the property was damaged when a sprinkler head broke and flooded the property. The owner submitted a claim under the policy. The insurance company adjusted the claim and paid several million dollars as benefits under the policy. The owner disputed the benefits due under the policy and filed suit in federal court. The owner sued the insurance company for breach of contract and bad faith. He also sued the brokers, alleging negligence, negligent misrepresentation, and breach of fiduciary duty.
Following discovery, the Gordon & Rees team moved for summary judgment. The court granted the motions. The court found that the plaintiff failed to prove further benefits were due under the policy, and, therefore, the insurance company did not breach the contract or act in bad faith. Since there were no further benefits due under the policy, the court also granted summary judgment in favor of the brokers. The plaintiff has filed an appeal of the summary judgment order.