I read Mr. Plitt’s article about the decision of the District Court of Ct. in Beacon Industries v. Walter Kaye Assoc. In that decision, the District Court decided that the broker, Walter Kaye, was negligent in not procuring a lower priced policy, based on a different rating code, on a Work Comp policy.
However, since I have a similar case, I did additional research, and found that Beacon Industries v Walter Kaye was overturned on appeal to the US Court of Appeals, Second Circuit – 789 F.2d 172, argued Oct. 21, 1985, decided April 30, 1986.
While there may still be a concern to Ct brokers over the possible obligation to “obtain the best price available”, the facts in Beacon Industries did not lend themselves to that conclusion.
I read Mr. Plitt’s article about the decision of the District Court of Ct. in Beacon Industries v. Walter Kaye Assoc. In that decision, the District Court decided that the broker, Walter Kaye, was negligent in not procuring a lower priced policy, based on a different rating code, on a Work Comp policy.
However, since I have a similar case, I did additional research, and found that Beacon Industries v Walter Kaye was overturned on appeal to the US Court of Appeals, Second Circuit – 789 F.2d 172, argued Oct. 21, 1985, decided April 30, 1986.
While there may still be a concern to Ct brokers over the possible obligation to “obtain the best price available”, the facts in Beacon Industries did not lend themselves to that conclusion.