Professional Negligence Law Reporter

Alex and Jill Chrysanithopoulos bought a second home adjacent to their primary residence. Alex called his longtime broker, Randy Duda, and told him that he required insurance for the new home, which he had purchased for $425,000. When he received the policy, Alex believed that his home and its additional structures were covered. After a fire destroyed the second home, the Chrysanithopouloses learned that the house was covered only by liability insurance. They received no insurance benefits to repair their damaged home.

The couple sued Duda and Bay Agency Insurance Group, Inc., alleging broker negligence. The plaintiffs asserted that the defendants had failed to obtain adequate insurance coverage for their new home. The defense argued that the declaration sheet for the plaintiffs’ insurance policy indicated that the new home had only liability and medical payments coverage.

The jury awarded $425,000, finding the parties equally at fault.

Citation: Chrysanithopoulos v. Bay Agency Ins. Grp., Inc., No. MONL-001054-19 (N.J. Super. Ct. Monmouth Cnty. Feb. 24, 2022).

Plaintiff counsel: Edward H. Lee, Springfield, N.J.