MH Wins Summary Judgment for Insurers

October 19, 2023

Case Studies

McDowell Hetherington won a complete summary judgment victory in California state court for two medical professional liability clients. Plaintiff, a former insurance broker for MH’s client, claimed that the insurance companies aided and abetted two of plaintiff’s former executives in breaching their fiduciary duties to plaintiff by forming a new, competing insurance brokerage firm. Plaintiff sought recovery of more than $5 million in diminished value, disgorgement of profits, and other damages arising out of its former executives’ alleged conduct. MH successfully demurred and moved to strike two iterations of plaintiff’s complaint regarding an Unfair Competition Law claim which sought impermissible damages. After those wins eliminated the UCL claim, MH prevailed on summary judgment on the aiding and abetting claim because Plaintiff could not prove an underlying breach of fiduciary duty by the former executives, and MH’s clients had no knowledge of, and did not assist, the former executives’ alleged misconduct.

MH attorneys Jodi Swick and John Burnite delivered this victory for their client.