Ord & Norman v. Surplus Line Assn. of California

Appellant Ord & Norman (Ord), a law firm, contends the trial court wrongly granted summary judgment against Ord’s claims that the Surplus Line Association of California (SLA) negligently breached a duty of care owed to Ord regarding its purchase of insurance from a foreign, nonadmitted insurer that later became insolvent. We find no breach of duty on the part of SLA and therefore affirm.

Facts and Procedural History

The relevant facts are undisputed. Ord purchased an insurance policy covering claims for legal malpractice through its California insurance broker, Monroe Insurance Brokerage, Inc. (Monroe). Monroe secured a policy covering Ord’s practice from American Trust Insurance Company, Ltd. (Trust), which was domiciled in the British West Indies and not admitted to do regular business in California. Nonadmitted insurers such as Trust are permitted to write some policies for California insureds under certain circumstances, when acting through a California surplus lines broker such as Monroe, and under the overall aegis of the regulatory power of the California Insurance Commissioner (Commissioner) and the California Department of Insurance (Department). (Ins. Code, §§…