Broker Awarded $3.8M Verdict in Reputation Suit

June 10, 2013

A Los Angeles Superior Court jury has awarded $3.8 million in lost profits and business reputation damages to HCF Insurance Agency.

On June 3, HCF, represented by law firm Winget Spadafora & Schwartzberg LLP, got the unanimous jury award, which included roughly $1.5 million in lost profits and business reputation damages, and $2 million in punitive damages.

In 2012, Woodland Hills, Calif.-based HCF filed a lawsuit against defendant Pasadena Healthcare Management Inc. of Cerritos, which operated numerous convalescent homes and skilled nursing facilities in Southern California.

HCF’s obtained worker’s compensation, general and professional liability, and property insurance quotes for the Pasadena Healthcare’s facilities. HCF, which loaned the facilities the down payment for the worker’s comp policy, sued Pasadena Healthcare because it refused to pay the premiums on the policies, refused to pay the broker fees and commissions to HCF and refused to repay the loan.

During a seven-day jury trial HCF attorney’s showed the agency acted in good faith to broker insurance for Pasadena Healthcare, but that Pasadena Healthcare defrauded HCF and breached agreements.

Latest Comments

  • June 17, 2013 at 2:15 pm
    Libby says:
    Carrying a client on your account current is not considered rebating, if that's what was done here. And I don't see how a loan is rebating if you are expecting payment back in... read more
  • June 17, 2013 at 10:42 am
    paul avila says:
    This type of business and relationships have been going on for a long time.Only when there is a lawsuit is this big news.This type of 'under the table'business is unethical.Th... read more
  • June 17, 2013 at 10:37 am
    paul avila says:
    This type of relationship has gone on for many years"under the table".Only when this blows up and goes to court is it big news.There should be introduced some language in the ... read more
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