Rick Righi and Beth Fitch prevail on motion for summary judgment on behalf of their wholesale insurance broker client in a New Mexico complex professional malpractice case where plaintiff was seeking $150,000,000 in damages. Plaintiff suffered catastrophic injuries in a shooting at an Elks Lodge in New Mexico. He asserted a negligence action against the Elks Lodge which in turn tendered the claim to its insurance carrier. The insurance carrier filed a declaratory relief action requesting the NM federal court to find that coverage was not afforded to the Elks Lodge based on the assault and battery and firearm exclusion. Following the federal court’s granting the declaratory relief in the insurers favor, the plaintiff and the Lodge entered into an agreement whereby the Lodge stipulated to a judgment and then assigned its rights against the retail insurance broker, the wholesale insurance broker, and the insurer.
Plaintiff filed suit against the retail broker, wholesale insurance broker, and insurer. Plaintiff claimed that he was stepping into the shoes of the Lodge, that the Lodge did not have notice of the exclusions before the shooting, and that the whole insurance carrier had failed to properly procure insurance. Plaintiff asserted claims for negligent misrepresentation, Violation of New Mexico’s Unfair Practices Act, breach of contract and breach of fiduciary duty. Plaintiff’s counsel made the tactical concession that the retail broker was the Lodge’s agent in order to bolster his claim against the retail broker. This concession was critical to prevailing on the motion for summary judgment that resulted in all claims being dismissed against RFLG client. The motion for summary judgment requested the court to find as a matter of law that (1) the Lodge had notice of the exclusions because RFLG client delivered the policy to the retail broker before the shooting; (2) the insurance policy exclusions are enforceable and exclude coverage for the shooting; and (3) because a finding of coverage is a condition precedent to the recovery under all the claims asserted, all claims should be dismissed with prejudice.”