Judge: Bruce G. Iwasaki, Case: 20STCV10768, Date: 2023-03-16 Tentative Ruling
Case Number: 20STCV10768 Hearing Date: March 16, 2023 Dept: 58
Judge Bruce G. Iwasaki
Hearing Date: March 16, 2023
Case Names: Rotax,
Inc. v. Underwriters at Lloyd’s et
al.
Case Nos.: 20STCV10768
Matter: Motion
for Summary Judgment
Moving Party: Defendants Edik Davidyan and Daragon Insurance Services
Responding Party: Plaintiff Rotax, Inc.
Tentative Ruling: Defendant’s motion for summary judgment is denied.
Background
This is an action in which the plaintiff alleges negligence
against insurance companies and their agents for procuring an unsatisfactory
policy.
In January 2019, Rotax, Inc. (Plaintiff) entered
discussions with M.L. Enterprise, LLC (M.L. Enterprise)[1] concerning Plaintiff’s interest in storing merchandise in
a warehouse leased by M.L. Enterprise (the “M.L. Warehouse”) beginning in
April, 2019.[2] One of Plaintiff’s requirements was that M.L Enterprise
obtain insurance to provide coverage in the event of damage to Plaintiff’s
goods at the M.L. Warehouse. M.L Enterprise’s representative, Nicolas Lieberman
(“Lieberman”), agreed to procure this coverage.
In March, 2019, Plaintiff referred M.L. Enterprise to
Defendant Edik Davidyan (“Davidyan”), an insurance broker, to facilitate the purchase of the insurance.[3] Davidyan worked for Defendant Daragon Insurance
Services (“Daragon”). Daragon
contacted Defendant G.J. Sullivan Co. (“G.J. Sullivan”), a surplus lines
broker, to obtain a policy.[4] G.J. Sullivan
ultimately procured the insurance from Underwriters at Lloyd’s
(Lloyd’s) (the “Policy”). The Policy
states that it provides liability coverage for the named assured as a
warehouseman or bailee under warehouse receipts issued by the named assured for
direct physical loss or damage to property of others while contained in the
premises described in the schedule. The Policy became effective April 1, 2019.
On April 10, 2019, Daragon sent Lieberman a copy of the Policy. Plaintiff asked
Davidyan to obtain an endorsement from Lloyd’s
for Plaintiff to be the payee under the Policy. On April 29, 2019, Plaintiff
paid $100 and was added as a loss payee under the Policy. This was the only
payment Plaintiff made in connection with the Policy.
Rotax alleges that on May 31, 2019, its property was
damaged by a fire at the M.L. Warehouse.
Lloyd’s declined to cover the loss,
claiming that the insurance was for liability only, not coverage for property
damage. Plaintiff sued Lloyd’s and later
settled the case with it; Lloyds is no longer a party. Rotax sued Daragon and Davidyan for
negligence.
Defendants Davidyan and Daragon now move for summary
judgment. They contend that they owed no
duty of care to Plaintiff and that, alternatively, they did not breach a duty
because they procured the policy that M.L. Enterprise requested.
Plaintiff opposes the motion for summary judgment, arguing
1) that Defendants should have obtained a policy providing off-site insurance
for the merchandise Plaintiff was shipping in from China in Spring, 2019 and 2)
even if insurance could only be provided through M.L. Enterprise, Defendants should have procured a
bailee property insurance policy.
Defendants replied, arguing that Plaintiff failed to
present any admissible evidence and failed to meet its burden.
Despite Plaintiff’s
scant opposition and failure to produce opposing evidence, the Court finds that
Defendants have failed to show that it had no duty or that there was no breach
of duty as a matter of law. Thus, the
motion for summary judgment is denied.
Objections
Plaintiff
objects to Defendants’ Undisputed Material Facts and Supporting Evidence nos.
14, 15, 17, 18, 23, 24, 25, 26, 27, 28, 29, 39, 40, 42, 43, 44, 45, 47, 48, 49,
50, 51, 52, 55, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 70, 71, 72, 73, 74,
75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 89, 90, and 91.
Plaintiff brings
all objections under CEC § 352, apparently arguing that the evidence objected
to will lead to the confusion of issues. Defendant objects to Plaintiff’s
Separate Statement on the grounds that Plaintiff cursorily cites to CEC § 352
without basis and objects without explanation to clearly relevant evidence.
Plaintiff’s
objections are overruled. The evidence Plaintiff objects to concerns alleged
communications between the various parties and their representatives, alleged
actions that form the basis of Defendants’ unclean hands theory, and other
events that are relevant to the present motion.
Defendants’ objection
to Plaintiff’s
provided declaration of James Robertson is sustained. (Lynn v. Tatitlek Support Services, Inc. (2017)
8 Cal.App.5th 1096, 1115-1116.) Mr. Robertson’s declaration is replete with
speculation and legal conclusions and is not based on personal knowledge.
Defendants’
request for an order striking Plaintiff’s Separate Statement in its entirety is
denied.
Judicial Notice
Plaintiff
requests that the Court take judicial notice of the declaration of Nicholas
Libermann of M.L. Enterprise, filed in opposition to the motion for summary
judgment of G.J. Sullivan. This was filed with the court on September 27, 2022.
A copy of this declaration is included in the list of declarations filed in
opposition to the present motion.
The Court may take judicial notice of “facts
and propositions that are not reasonably subject to dispute and are capable of
immediate and accurate determination by resort to sources of reasonably
indisputable accuracy.” (Evid. Code § 452(h).) The Court may take judicial
notice of records of any court of record of the United States. (Id. at § 452(d)(2).) However, the court may
only judicially notice the existence of the record, not that its contents are
the truth. (Sosinsky v. Grant (1992) 6 Cal.App.4th 1548,
1565.)
Plaintiff’s request is granted. The Court takes
judicial notice of the declaration of Nicholas Libermann of
M.L. Enterprise, filed in opposition to the motion for summary judgment of G.J.
Sullivan.
Legal Standard
A party may
move for summary judgment “if
it is contended that the action has no merit or that there is no defense to the
action or proceeding.” (Code Civ. Proc.,
§ 437c,¿subd. (a).) “[I]f all the evidence submitted, and all inferences reasonably
deducible from the evidence and uncontradicted by other inferences or evidence,
show that there is no triable issue as to any material fact and that the moving
party is entitled to judgment as a matter of law,” the moving party will be
entitled to summary judgment. (Adler
v. Manor Healthcare Corp.¿(1992) 7 Cal.App.4th 1110, 1119.)
The moving
party has the initial burden of production to make¿a prima facie¿showing
of the nonexistence of any triable issue of material fact, and if he does so,
the burden shifts to the opposing party to make¿a prima facie¿showing
of the existence of a triable issue of material fact. (Aguilar v. Atlantic Richfield Co.¿(2001)
25 Cal.4th 826, 850; accord Code Civ. Proc., § 437c,¿subd.
(p)(2).) A Defendant moving for summary
judgment may meet its initial burden by proving that for each cause of action
alleged, plaintiff cannot establish at least one element of the cause of
action. (Code Civ. Proc., § 437c(p)(2).)
The facts are to be construed in the
light most favorable to the opposing party. (Caloroso v. Hathaway
(2004) 122 Cal.App.4th 922, 926.)
Discussion
Defendants Davidyan and Daragon argue that there is no
triable issue of material fact because Plaintiff’s complaint is barred by the
doctrine of unclean hands and Defendants did not breach any alleged duty they
owed to Plaintiff.
The doctrine of unclean hands does not support Defendants’
motion for summary judgment
Defendants
argue that Plaintiff’s claim for negligence is barred by the doctrine of
unclean hands because the insurance policy underwritten by Lloyd’s and procured
by Defendants was issued based on an incomplete or misleading version of the
agreement between Plaintiff and M.L. Enterprises to store Plaintiff’s items at
the M.L. Warehouse. Defendants allege that this incomplete or misleading
version of the agreement was provided to improve the chance of procuring
insurance.
Sometime
after the Policy was issued, Plaintiff and M.L. Enterprise modified their licensing
agreement. They made the following changes: 1) In the initial version of the
agreement, M.L. Enterprise represented that it “shall
not be liable for any personal injury or damage to property which licensee or
its guests or invitees may incur, regardless of the cause thereof,” but, in
Section 6 of the later version, this sentence was completely removed; 2) In the
initial version of the agreement, Plaintiff released M.L. Enterprise from
liability but in the later agreement, M.L. Enterprise agreed “to defend,
indemnify and hold harmless licensee ... from ... all claims, damages, losses,
suits ... arising from licensee’s occupation of the licensed space…”; and 3) the later
agreement added that “ML agrees to provide
insurance covering in full the value of any property stored by Licensee in ML’s
premises, as per the terms of this license,” and “ML
shall be liable for any damage resulting from, but not limited to, water, fire,
or theft.”
The doctrine of
unclean hands “demands that a plaintiff act fairly in the matter for
which he seeks a remedy.” (Kendall-Jackson Winery Ltd. v. Superior Court (1999)
76 Cal.App.4th 970, 978.) Not every wrongful act constitutes¿unclean¿hands. But, the misconduct need not be a crime or an actionable
tort. Any conduct that violates conscience, or good faith, or other equitable
standards of conduct is sufficient cause to invoke the doctrine.¿(DeRosa v. Transamerica Title Ins. Co.¿(1989) 213 Cal.App.3d 1390, 1395–1396.) “The
misconduct that brings the clean hands doctrine into play must relate directly
to the cause at issue. Past improper conduct or prior misconduct that only
indirectly affects the problem before the court does not suffice. The
determination of the¿unclean¿hands¿defense cannot be distorted into a
proceeding to try the general morals of the parties.” (Kendall-Jackson
Winery, supra, 76 Cal.App. at 978.) Unclean hands can be asserted when “the
manner of dirtying renders inequitable the assertion of such rights against the
defendant. [Citation] The misconduct must prejudicially affect the rights of
the person against whom the relief is sought so that it would be inequitable to
grant such relief.” (Id.)
Here, Defendants
contend that misrepresentations were made by either Plaintiff or M.L.
Enterprise, or both in the documents provided to Defendants to procure
insurance. They argue that these
documents contained inaccurate descriptions of the responsibilities of each party.
However, it is unclear the extent to which Plaintiff itself played a role in
creating the alleged misrepresentations. Defendants argue elsewhere in the
motion that with regard to the Lloyd’s insurance policy, Defendants interacted
exclusively with M.L. Enterprise and that Plaintiff was not their client and
played no role in procuring the Policy. Therefore, it would appear that any
misrepresentations in providing documentation to Defendants could only be attributed
to M.L. Enterprise, not to Rotax.
Furthermore,
Defendants do not make a sufficient showing that the misrepresentations are
sufficiently connected to Plaintiff’s claim for negligence. As Plaintiff argues
in its opposition, Plaintiff’s claim is not that Defendants breached their
contractual duty to Plaintiff under the Policy. Rather, Plaintiff claims that
Defendants breached their duty to Plaintiff by not seeking property insurance
rather than liability insurance. Thus, Plaintiff’s alleged misconduct in
procuring the Policy covering its property stored at the M.L. Warehouse does
not directly relate to the cause at issue.
Accordingly,
Defendants’ motion for summary judgment on the theory of unclean hands is
denied.
Summary judgment is not merited
because Plaintiff meets its burden to survive summary judgment on the issue of
duty and the issue of breach
Defendants argue
that they never owed a duty to Plaintiff and, even if they had, they did not
breach that duty because they procured the correct insurance policy, which was
the policy M.L. Enterprise requested. The Court analyzes each issue separately.
An insurance broker may still owe a
duty of care to a third party beneficiary of an insurance policy despite a lack
of privity.
Defendants
argue that they obtained the insurance policy solely on behalf of M.L.
Enterprise, that Plaintiff is not a named insured in the Policy, and that
Plaintiff paid none of the Policy premiums and therefore, that Defendants owed
no duty to Plaintiff. Plaintiff does not specifically address this argument in
its opposition. The Court finds that Defendants owed Plaintiff a limited duty
as a third party beneficiary to the Policy obtained on behalf of M.L.
Enterprise.
“‘The
threshold element of a cause of action for negligence is the existence of a
duty to use due care toward an interest of another that enjoys legal protection
against unintentional invasion. [Citations.] Whether this essential
prerequisite to a negligence cause of action has been satisfied in a particular
case is a question of law to be resolved by the court.’” (Centinela Freeman Emergency
Medical Associates v. Health Net of Cal. (2016) 1
Cal.5th 994, 1012.)
The
seminal case discussing whether a duty exists to a third party not in privity
with a plaintiff is Biakanja v. Irving (1958)
49 Cal.2d 647 (Biakanja). That case
involved a defendant notary public who provided insufficient attestation to a
will. The will was found to be invalid,
and plaintiff sued the notary public. (Id.
at p. 648.)
The California Supreme Court provided several factors to consider
whether a defendant is liable, despite no privity with the plaintiff: “[1] the extent to which the transaction was intended to affect
the plaintiff, [2] the foreseeability of harm to him, [3] the degree of
certainty that the plaintiff suffered injury, [4] the closeness of the
connection between the defendant's conduct and the injury suffered, [5] the
moral blame attached to the defendant's conduct, and [6] the policy of
preventing future harm.” (Id. at p. 650.)
These
factors were further explored in Business to Business Markets, Inc.
v. Zurich Specialties London Limited (2005) 135
Cal.App.4th 165 (Business to Business).[5] There, the
plaintiff, Business to Business, hired Tricon, an Indian software company, to
create a computer program. In the contract,
the plaintiff required that Tricon obtain an errors and omissions insurance
policy to protect plaintiff if the software was unusable. (Id. at
p. 167.) Plaintiff contacted Hoyla, a
retail insurance broker, and informed it of Tricon’s
insurance needs and that Tricon was based in India. Hoyla contacted Professional Liability
Insurance Services, Inc. (PLIS), a surplus lines broker, to obtain the policy
based on the information that Hoyla received from plaintiff. PLIS procured the policy from Zurich Specialties,
but the coverage excluded claims that arose from or related to work performed
in India. (Ibid.)
After
Tricon failed to provide usable software, Plaintiff Business to Business sued
and obtained a default judgment against Tricon.
(Id. at p. 168.) Business to Business then sued PLIS for
negligence in procuring a policy that did not cover any work done in India. (Ibid.) The trial court sustained PLIS’s
demurrer without leave to amend, finding that PLIS did not directly deal with
plaintiff and did not owe it a duty of care. (Ibid.)
The
Court of Appeal reversed. Though the
parties “had
no direct contact, were not in privity of contract, and [plaintiff] was not
named on the policy,” PLIS owed plaintiff a duty of care. (Business to Business, supra, 135 Cal.App.4th
at p. 168.) The appellate court
considered the Biakanja factors,
holding that the policy was procured for “protecting B2B against Tricon’s
possible breach of contract” and the injury was foreseeable. (Id. at
p. 169.) The appellate court noted that “PLIS voluntarily assumed the responsibility of finding
insurance for Tricon . . . [and] was obligated to discharge that responsibility
competently.” Thus, “imposing liability on PLIS has the salutary effect of
encouraging PLIS and other insurance brokers to secure insurance policies for
their clients that meet their clients’ needs.” (Id. at
pp. 169-170.)
Apart
from the Biakanja factors, the Court of
Appeal in Business to Business considered
additional factors when evaluating professional negligence: “One factor is the degree to which clients and third
parties ordinarily relinquish control for decisionmaking to the professional.
Another is the degree to which the defendant works under professional standards
established and maintained by the profession. A third factor is the defendant's
ability to spread its costs by raising its fees or buying liability insurance.
And a fourth factor is the expected and customary reliance by clients and
others on the skillfulness and expertise of the defendant's profession.” (Id. at
p. 172.)
Here,
neither side discussed the Biakanja factors
or the Business to Business case. However, these factors are appropriate in
this case and support a finding that Defendants may owe a duty to Plaintiff as
a third party beneficiary.
The
first factor is whether the transaction was intended to affect the plaintiff. (Business
to Business, supra, 135 Cal.App.4th at p.
169.) Here, Rotax contracted with M.L.
Enterprise to store its inventory in M.L. Enterprise’s
warehouse. The contract required that
M.L. Enterprise obtain insurance for the goods.
(Campo Decl., Ex. A, Torossian Depo., p. 50:2-11; Ex. B, Temporary
License to Use Premises, ¶ 6; Ex. E, Libermann Depo., pp. 15:16-16:6.) While M.L. Enterprise was the named insured,
Plaintiff was added on as a payee and the purpose of procuring the policy was
to protect Rotax’s inventory. (Campo Decl., Ex. A, Torossian Depo., p.
50:2-11, 55:23-56:15; Ex. B, Temporary License to Use Premises, ¶ 6.) Therefore, the insurance transaction greatly
affected Plaintiff.
The
second factor is the foreseeability of harm to Plaintiff. “Insurance
exists to protect against unlikely, but nevertheless possible, and thus
foreseeable, events. Insurance companies take a gamble when giving insurance,
and there was always the possibility here that [insured] would default on its
contractual obligations.” (Business
to Business, supra, 135 Cal.App.4th at p. 169.) For the same reason, it is foreseeable that
Plaintiff’s inventory would be damaged in M.L Enterprise’s
warehouse.
There
is no dispute that Plaintiff has suffered actual injury and meets the third
factor. (Campo Decl., Ex. A, Torossian Depo., p. 176:12-17.)
The
fourth factor is “the
closeness of the connection between the defendant’s
conduct and the injury suffered.” (Biakanja, supra, 49 Cal.2d
at p. 650.) Here, Davidyan had direct
contact with Plaintiff on several occasions and was referred by Plaintiff to
M.L. Enterprise.
An
issue is whether Rotax, a third party, “is an intended beneficiary or merely an
incidental beneficiary,” which requires consideration of the ‘“parties’ intent,
gleaned from reading the contract as a whole in light of the circumstances
under which it was entered.’” (Business
to Business, supra, 135 Cal.App.4th at p. 170.) An intended beneficiary is one who “intentionally receives the benefit of the insurance.
However, this person does not need to be specifically named, as long as he is
in the class of members that the insurance is intended to benefit.” For example, if the contract contains a
provision in the policy “specifically
for third parties injured on the insured’s
property,” then a plaintiff would have a right to enforce the contract as a
third party beneficiary. (Id. at p. 171 [citing Harper v. Wausau Insurance Co. (1997)
56 Cal.App.4th 1079].)
Here,
Plaintiff communicated with Davidyan and requested that he procure “coverage for other people’s
goods.” (Campo Decl.,
Ex. A, Torossian Depo., p. 51:11-23.)
Moreover, Plaintiff requested and was added on as a loss payee so
presumably, Daragon and Davidyan knew who the policy was intended to
cover. (Campo Decl., Ex. L.) Thus, there is sufficient evidence that
Defendants knew Plaintiff was an intended third-party beneficiary.
Accordingly,
Defendants motion for summary judgment on the ground that they owed Plaintiff
no duty as a matter of law is denied.
There
is a material issue of fact on whether Defendants breached their duty because
Plaintiff shows facts to support that it requested property coverage
Alternatively,
Defendants argue that they have satisfied their duty and that there is no
breach. They assert that ordinarily, “such
a duty is limited to the use of reasonable care, diligence, and judgment in procuring
the insurance requested by the client.”
(San Diego Assemblers, Inc. v. Work Comp for Less Insurance
Services, Inc. (2013) 220 Cal.App.4th 1363, 1369
[no duty to “investigate [plaintiff’s] coverage needs and procure the
requisite coverage to meet those needs, even if [plaintiff] did not request the
coverage and … probably could not have afforded it”]; Jones v. Grewe (1987) 189 Cal.App.3d 950, 954 [no duty to procure
“complete liability protection,” especially since there
was no evidence that the insured requested such comprehensive coverage].)
Defendants argue they did not breach their duty because they procured the
coverage requested by M.L. Enterprise, the named insured.
Plaintiff
argues that Defendants breached their duty by failing to find or even
attempting to find off-site coverage or bailee property insurance, and instead
searching for and eventually procuring liability insurance only. Plaintiff
argues that Defendants acted this way despite circumstances showing the need for
property insurance rather than liability insurance. Plaintiff argues that
Defendants’ statement that “there is no such thing as a warehouseman’s
first-person policy that would provide first party property coverage to a third
party who is not the insured” has no evidence to support it and is merely a
bald pronouncement.
Generally,
insurance brokers have no duty to inform the insured that it should procure
additional or different coverage, subject to three exceptions: “(a)
the agent misrepresents the nature, extent or scope of the coverage being
offered or provided . . . (b) there is a request or inquiry by the insured for
a particular type or extent of coverage . . . or (c) the agent assumes an
additional duty by either express agreement or by ‘holding himself out’ as having expertise in a given
field of insurance being sought by the insured.” (Fitzpatrick, supra, 57
Cal.App.4th at p. 927.) Here, there is
no allegation that the first and third exception apply; thus, the dispute is
whether the insured requested a particular type of coverage and Defendant
failed to procure it.
Whether
a defendant breached its duty is “ordinarily
[a] question[] of fact for the jury’s determination.” (Vasquez v. Residential
Investments, Inc. (2004) 118 Cal.App.4th 269, 278.)
But the element of breach can be decided as a matter of law if “‘no
reasonable jury could find the defendant failed to act with reasonable prudence
under the circumstances.’” (T.H. v. Novartis Pharmaceuticals Corp. (2017) 4 Cal.5th 145, 188.)
Defendants
rely in part on Travelers Property Casualty Co. of America v.
Superior Court for their assertion that Plaintiff provides insufficient
evidence to show Defendants’ failure to
seek off-site coverage or bailee property coverage constituted a breach
of duty. (Travelers Property Casualty
Co. of America v. Superior Court, (2013) 215 Cal.App.4th 561.) In Travelers, the plaintiff, Braum, brought a professional negligence
claim on the theory that Koram, a broker, breached a duty by not obtaining a
builder’s risk policy, which would have covered his specific loss. Braum, as a
loss payee, was a third party beneficiary to the subject insurance
policy. The policy itself was negotiated without Braum’s input. The Court found that Koram breached no duty because there
was no suggestion in the record that he specifically requested a continuation
of the builder’s risk policy.
Here,
the situation is not analogous to Travelers. First, unlike Braum in Travelers, here, Plaintiff had direct contact with Davidyan
regarding his interest in protecting his property at M.L. Warehouse before the
Policy was procured. (Torossian Declaration, ¶ 5.) Second, the evidence here shows that Plaintiff, through Torossian,
testified that he told Liebermann that he wanted coverage for “fire, water damage, theft.” (Campo Decl., Ex. A, Torossian Depo., p.
50:17-19.) Levy testified that he
informed Davidyan that Rotax “needed
insurance for merchandise stored at the [warehouse]” and that Davidyan informed
him that the inventory needed to be “segregate[d]”
from M.L. Enterprise’s merchandise. (Id., Ex. C, Levy Depo., pp. 100:22-101:14.) Third, there is no
consensus that M.L. Enterprise specifically requested a warehouseman’s policy.
Liebermann’s own deposition failed to mention
specifically requesting a “warehouseman’s
policy.” (Id., Ex. E, Liebermann Depo., pp. 15:8-16:6.) Libermann has difficulty with English and
communicated with Davidyan through Levy.
(Libermann Decl., ¶¶ 2-3.) Torossian states that he never requested
warehouseman’s liability from Davidyan. (Torossian Declaration, ¶ 5.) Lieberman echoes Torossian’s statement: “at
no time did we ever tell Mr. Davidyan that we wanted a Warehouseman’s Liability
Insurance. We did not even know what such an insurance would be. We simply
asked Mr. Davidyan to provide insurance to protect the inventory of Rotax.”
(Lieberman Declaration, ¶ 8.)
While
Defendants put forward evidence that they obtained the type of insurance they thought
was being requested, there is a triable issue of
fact as to whether Plaintiff sufficiently communicated to Davidyan through Levy
that Plaintiff requested property coverage and therefore, whether Davidyan was
on notice of the specific type of coverage requested. In Davidyan’s
application for insurance provided to G.J. Sullivan, he noted that M.L.
Enterprise “leases
part of his warehouse and needs cover for the property of others.” (Campo Decl., Ex. F.) This can be read to mean the insured is
seeking liability insurance to protect others’
goods, or it could mean that the insured is seeking property insurance.
At
a minimum, this ambiguity raises a factual issue whether Plaintiff requested a
certain type of coverage from Defendants and if so, what type of coverage.
Accordingly, the motion for summary judgment is denied.
[1]
M.L.
Enterprise was originally a plaintiff in a related action. On March 6, 2023 the
Court granted M.L. Enterprise’s request for dismissal.
[2] Plaintiff
and M.L. Enterprise primarily communicated through Arthur Torossian
(“Torossian”) and Nicolas Lieberman (“Lieberman”), respectively. Lieberman is a
native French speaker. A mutual acquaintance of both individuals, Joshep Levy
(“Levy”), acted as a translator between Torossian and Lieberman.
[3] Plaintiff
had used Davidyan to procure an insurance policy on February 12, 2019, on
Plaintiff’s own warehouse, located in Leonis, CA.
[4] “A surplus lines broker is a broker authorized to transact
business with insurers that are not admitted to do business in California
pursuant to Insurance Code §§ 700 et seq. Insurance Code § 1763.” (DiMugno
& Glad, California Insurance Law Handbook (Apr. 2022) § 4:2.)
[5]
Business to Business concerned a surplus lines broker, such as Defendant G.J.
Sullivan in the instant action. Here, the present motion is concerned with
Defendants Davidyan and Daragon, who are both insurance brokers rather than
surplus line brokers. The reasoning of Business to Business, however,
would still seem to apply.