Phelps Litigation Team Defeats Negligent Procurement Claims Against Insurance Broker

A team from the New Orleans Litigation Group (with assistance from others) recently succeeded in defeating claims that an international insurance brokerage negligently failed to place certain coverage for its client.

The plaintiff sued the firm's client and initially alleged that it sustained damages over $20 million. Phelps removed the matter to the United States District Court for the Eastern District of Louisiana.

After Phelps conducted discovery on plaintiff's claims,the demand was reduced to nearly $2 million. The litigation team, led by Chris Ralston, with assistance from Kyle Moran, Arthur Kraatz and James Gilbert, successfully obtained summary judgment dismissing plaintiff’s claims. While the summary judgment motion advanced several challenges to the merits of the claims, Phelps’ client ultimately prevailed based on the Court’s agreement that the lawsuit was not filed within the strict preemptive period for claims against insurance agents established by Louisiana Revised Statute § 9:5606.

In the wake of COVID-19, many individuals and businesses may seek to sue their insurance agents for failing to obtain insurance coverage for business losses caused by the pandemic. Phelps’ litigation team has deep experience defending insurance broker negligence claims and stands ready to defend insurance agents and brokers faced with such claims.