March 1, 2022
Carmel and Watnick Win Motion to Dismiss
A federal court recently granted a Rule 12(b)(6) motion to dismiss without leave to amend, and dismissed Rina Carmel and Ken Watnick’s insurer client from the action. In the case, the insurer paid its policy limit in connection with a fire loss claim. The insured, represented by a well-known policyholder-side firm, filed suit against its insurance broker and insurer for negligence in procuring the policy, and alleged over $6 million in damages. The court ruled that an insurer cannot be liable for the alleged negligence of an insurance broker. The case is Camping Unlimited for the Developmentally Disabled v. Brown & Brown of Garden City Inc., et al., No. 21-cv-5495, 2022 WL 395312 (N.D. Cal. Feb. 9, 2022).