In Dominion Financial Corp. v. Asset Indem. Brokerage Corp. (60 A.D.3d 461 [1st Dept 2009]) a real estate lender commenced an action on its own behalf and as the assignee of the claims of an insurance broker's client against the insurance broker for failure to properly procure insurance. The facts of Dominion, as reflected in the lower court's order, revealed that non-parties Eric and Ian Brown approached plaintiff, Dominion Financial Corporation (the "Dominion"), to borrow $ 2 million to finance their garage business. Dominion loaned the monies to three corporations that owned the leases to the garages (the "borrowers"), and required security for the funds. The borrowers engaged FB Acquisition Corporation ("FB") to operate the garages and make payments directly to Dominion on the loan. Asset Indemnity (the "broker") assisted FB in procuring surety coverage from United Assurance to secure the loan. When FB defaulted in payments, United Assurance allegedly breached its obligations under the surety bonds by failing to make certain payments to Dominion, and Dominion sued United Assurance. FB later assigned any claims it had against the broker to Dominion. In an affidavit from Eric Brown, Brown stated that FB contracted with the broker for the specific purpose of procuring some type of third party security for Dominion; Brown expressly told the broker that the security was being sought for Dominion's benefit; Brown participated in a three person conference call with the broker to discuss surety coverage for Dominion; and the broker sent United Assurance's financial statements to Dominion. On appeal, the First Department noted that the insurance broker "was aware, from the moment its client contacted it about procuring coverage," that the lender was the intended beneficiary of coverage. The First Department also noted that the lender "participated on its own behalf in discussions with" the broker and its client about the coverage to be provided. According to the Court, the lender stated a claim for negligence "both on its own behalf and as the assignee" of the broker's client's claims against the broker.