On May 1, 2019, Brownson PLLC attorney Aaron Simon prevailed in obtaining summary judgment and dismissal of his insurance agency client in the United States District Court, District of Minnesota, case 0:18-cv-00680-SRN-TNL Ma Amba Minnesota, Inc. v. Auto-Owners Insurance Company et al. The Plaintiff in the case argued that Mr. Simon’s insurance agent client was negligent for failing to affirmatively inform the Plaintiff of a gap in flood insurance coverage for a motel in southern Minnesota, even though the Plaintiff admitted there was never a specific discussion about any flood insurance coverage with the insurance agent prior to the loss. The Court applied the appropriate order taker standard of care stated in the Minnesota Supreme Court case of Gabrielson v. Warnemunde, 443 N.W.2d 540, 543 (Minn. 1989). The Court also ruled that there were not special circumstances giving rise to a special relationship heightened standard of care.
In identifying the appropriate standard of care, citing to Gabrielson, the Court specifically stated that, “[i]n the insurance agent context, the Minnesota Supreme Court has held that, by and large, the only legally-enforceable duty that an insurance agent owes to its customers is the duty ‘to act in good faith and follow instructions.’” The Court went on to state, “[c]onsequently, in the usual course of business, a plaintiff cannot hold an insurance agent liable for negligence based solely on a sin of ‘omission.’”
Mr. Simon is proud to continue his favorable track record of successfully defending insurance agents and agencies in Minnesota and throughout the Midwest.