SJJ attorneys Ross Hussey and Danielle Dumett recently secured a multi-million-dollar jury verdict on behalf of Green Group Reprocessing, LLC in Freeborn County District Court. Following a six-day trial, a Minnesota jury found that an insurance agent and his agency were responsible for millions of dollars in uninsured losses suffered by Green Group after a devastating fire destroyed much of its plastics recycling operation. The jury concluded that the agent failed to obtain the insurance coverage Green Group requested and relied upon, resulting in substantial uncovered losses when the fire occurred.
The Background
In 2023, Green Group purchased a plastics reprocessing facility and retained Troy Thompson and Troy Thompson Agency, Inc. to procure insurance coverage for the business’s buildings, equipment, and operations.
On January 7, 2024, disaster struck when a fire destroyed two of Green Group’s three commercial buildings and much of its equipment, inventory, and finished product. After the loss, Green Group learned that significant portions of its property were either underinsured or not insured at all. The company subsequently brought claims for negligence, breach of contract, and misrepresentation against Thompson and his agency.
The Jury’s Findings
After hearing the evidence, the jury overwhelmingly sided with Green Group.
The jury found:
- A contract existed between Green Group and Thompson;
- Thompson breached that contract;
- The breach directly caused Green Group’s damages;
- Thompson owed Green Group a heightened duty of care as an insurance agent;
- Thompson breached that heightened duty;
- Thompson was negligent; and
- Thompson’s conduct directly caused Green Group’s damages.
Importantly, the jury concluded that Thompson’s obligations extended beyond merely placing an insurance policy. The jury specifically found that Thompson owed Green Group a heightened duty of care, a finding typically reserved for situations where an insured reasonably relies on an agent’s expertise and advice.
Why This Case Matters
Insurance agents often argue that they cannot be liable if no better insurance policy existed on the market. This case demonstrates that such arguments are not always successful.
When an insurance agent undertakes to advise a client, makes representations regarding coverage, or agrees to obtain certain protections, liability may arise from the agent’s conduct, communications, and contractual obligations, not merely from the availability of a different insurance product. Here, a Minnesota jury found that the agent breached both contractual duties and a heightened professional duty owed to the insured, resulting in a substantial recovery for the business.
Bottom Line
Green Group suffered devastating losses after a fire destroyed much of its business. After defendants argued that they obtained all available coverage and attempted to dismiss the case before trial, a Minnesota jury disagreed and found in favor of Green Group on its breach of contract, negligence, and heightened-duty claims.
If you believe your insurance agent failed to obtain requested coverage, misrepresented the scope of your insurance protections, or failed to properly advise you regarding available coverage options, contact the team at SJJ today.
While many agent liability cases resolve before trial, not all do. When insurance agents and their insurers refuse to accept responsibility, SJJ’s attorneys have the experience, resources, and courtroom skill to take cases all the way to a jury verdict when necessary. We prepare every case as though it will be tried, and we are committed to fighting for our clients through every stage of the litigation process. As this case demonstrates, we are prepared to see a case through to the very end in pursuit of the best possible outcome for our clients.