Hydro-Mill
Hydro-Mill Co. v. Hayward, Tilton & Rolapp Insurance Associates, Inc.
Opinion
Opinion
Mallano, J.
A company purchased earthquake insurance from a broker. The broker obtained insurance with less coverage than the company sought. After sustaining damage in the Northridge earthquake, the company submitted a claim under the insurance policy and was paid benefits in accordance with the policy as written.
The company filed this action against the broker to recover the additional benefits that would have been paid under the coverage as requested, alleging causes of action for negligence, breach of oral contract, negligent misrepresentation, and breach of fiduciary duty. The case was tried to the court, which found in the company’s favor on all causes of action and awarded compensatory damages, attorneys’ fees, prejudgment interest, and costs.
On appeal, the broker contends that the gravamen of this suit, regardless of how the causes of action are labeled, is a claim for professional negligence, and the suit is therefore barred by the statute of limitations applicable to malpractice claims against an insurance broker (Code Civ. Proc., § 339, subd. 1). We agree and reverse.
I
BACKGROUND
Plaintiff Hydro-Mill Company, Inc., manufactures sophisticated aircraft parts for the…