Bob Allen Leads Team to a Complete Victory in a Three Week Jury Trial Between a Reinsurer and a Managing General Agency
March 01, 2011
Texas Lawyer names result as the Number 2 Insurance Jury Verdict of 2011
The case involved a dispute between St Paul, as a reinsurer, and a Managing General Agency over excessive commission withdrawals from a Premium Trust Account by the MGA. The MGA denied making excessive withdrawals from the Premium Trust Account and filed a $6.5 million counterclaim against St Paul, contending that St Paul’s termination of the reinsurance agreement had the effect of putting the MGA out of business and that the value of the business was $6 million. The MGA also claimed that it was entitled to an additional $500,000 in commissions from St Paul.
The jury ruled in favor of St. Paul on its claims for breach of contract, promissory estoppel and fraud. The jury awarded damages to St Paul: $353,131 for breach of contract, $504,455.00 for promissory estoppel and $857,586 for fraud. The jury ruled against the MGA on all of its theories of recovery asserted in its counterclaim.
St Paul Fire & Marine Insurance Company v. Clark & Company, Inc., Cause No. 03-3587, on file in the 44th Judicial District Court of Dallas County, Texas