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CG&P Obtains Appellate Victory and Dismissal of Claims Against Insurance Broker

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CG&P Obtains Appellate Victory and Dismissal of Claims Against Insurance Broker

CG&P has secured the dismissal of claims asserted against a New York insurance broker. A Manhattan appeals court affirmed the trial court’s dismissal of plaintiff’s complaint against the broker for negligence and breach of contract. Adopting CG&P’s arguments, the Court rejected the plaintiff’s claim that the broker’s common law duties to the client were expanded by a “special relationship.” The Court emphasized that the broker was not paid for, and did not conduct, an evaluation of the plaintiff’s insured property; and that prior to the loss, the insurance broker specifically informed plaintiff of the applicable coverage limits and plaintiff made no requests for changes. Significantly, the Appellate Division re-affirmed that the time frame of a client/broker relationship does not alone raise an issue of fact as to a “special relationship.” The case was handled by partner Gary Petropoulos, with assistance from associate William Schleifer.