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Federal Ins. Co. v. Spectrum Ins. Brokerage Servs – Case Brief Summary (New York)

In Federal Ins. Co. v. Spectrum Ins. Brokerage Servs. (304 AD2d 316, 758 NYS2d 21 [1st Dept 2003]), the plaintiff was an insurance company subrogee that brought the action against the broker who allegedly failed to procure sufficient coverage for plaintiff's subrogors as additional insureds, and the insurer with which the broker placed the coverage that it did obtain.

The Court affirmed the dismissal of the complaint upon the grounds that plaintiff was not suing the party who caused the injury to its subrogor, and that the broker owed no duty to the plaintiff, but only to the broker's customer, the contractor.

Since plaintiff's insured did not have a viable claim against the broker, plaintiff therefore had no claim against its insured's subrogee.