David Fowler Johnson, in his Texas Fiduciary Litigator Blog, has made available for download his article, titled “Insurance Broker Does Not Ordinarily Owe Fiduciary Duties To A Client” which discusses Hitchcock Indep. Sch. Dist. v. Arthur J. Gallagher & Co.. The abstract of the article is as follows:
In Hitchcock Indep. Sch. Dist. v. Arthur J. Gallagher & Co., a school district sued it insurance broker for failing to obtain insurance policies that did not have arbitration and choice-of-law clauses that favored New York. No. 3:20-CV-00125, 2021 U.S. Dist. LEXIS 57452 (S. D. Tex. February 26, 2021). According to the school district, the insurance broker “knowingly failed to disclose the burdensome and onerous arbitration provisions and choice of law clause[s] to [the school district]”; “misrepresented to [the school district] the nature, quality, and coverage(s) afforded under the Policies”; and “knowingly provided false and fraudulent information concerning the coverages under the Policies and the endorsements, exclusions[,] and provisions of the Policies.” The school district alleged six causes of action against the broker, including breach of fiduciary duty, and sought more than $ 14 million in actual and punitive damages, plus an undetermined amount of attorney’s fees, interest, and costs. The broker moved to dismiss the claims.
To see the full article, click: Insurance Broker Does Not Ordinarily Owe Fiduciary Duties To A Client (April 17, 2021)
Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.