Coverage and Professional Liability Claims Defeated After Discovery
The Challenge: Post-Judgment Effort to Shift Liability to Insurance Professionals
O’Hagan Meyer partner Whit Selert, with assistance from associate Inku Nam, represented an insurance agent and broker sued by a personal injury plaintiff seeking to collect on a $9.5 million judgment entered against a beauty salon. After obtaining the judgment, the plaintiff proceeded by assignment and brought suit against the salon’s insurers, broker, and agent.
The plaintiff dismissed the insurance carriers after acknowledging that the policies excluded claims arising from body‑waxing services, then pursued the agent and broker on the theory that they breached their duties by failing to procure coverage for waxing‑related claims, which were central to the salon’s business.
The Solution: Aggressive Discovery and Dispositive Strategy
Through discovery, O’Hagan Meyer attacked the claims on the merits and uncovered significant irregularities. Evidence showed that the plaintiff and defendants were personally acquainted, and that both sides’ counsel knew each other well. The assignment of the judgment occurred just eight weeks before trial, and the defendants did not contest liability despite salon owners testifying that they believed the claims were without merit.
Further discovery revealed a written “confidential” cooperation agreement between the parties that had not been disclosed to the trial judge. It was also uncovered that the salon had filed for bankruptcy approximately ten months earlier after receiving notice of the claim yet did not disclose or attempt to discharge it during the bankruptcy proceeding.
The Outcome: Dismissal with Prejudice
After O’Hagan Meyer prepared to raise these issues in a dispositive motion, the plaintiff dismissed the case with prejudice, fully resolving the claims against the agent and broker.
The dismissal brought a complete end to a high‑exposure effort to shift liability away from the judgment debtor and onto insurance professionals.
