Intermediaries Cannot be Sued for Breach of Fiduciary Duty, Judge Rules

LOS ANGELES - An insurance broker cannot be sued for breach of fiduciary duty, a California appellate court has affirmed in a case brought against a reinsurance intermediary by Workmen's Auto Insurance Co. Workmen's Auto Insurance Co. v. Guy Carpenter & Company Inc., Nos. B211660 and B213853 (Calif. App. Ct., 2nd Dist.).

On May 4, the California Court of Appeal, 2nd District, ruled that a trial court did not err when it found in favor of Guy Carpenter & Company Inc. on allegations that the broker did not obtain the best terms for reinsurance.

Carpenter, a reinsurance intermediary, placed reinsurance …