In an October 14, 2011 decision by Justice Warshawsky the court granted plaintiffs’ motion to amend to add an additional statutory cause of action and an additional party. Defendants were retained to provide estate planning advice and services, including assisting in the purchase of life insurance policies. Plaintiffs alleged that defendants failed to diligently seek the most cost effective insurance policy. Plaintiffs sought to add a cause of action under Insurance Law §§ 4226 and 2123. Defendants opposed arguing that the claims were palpably insufficient because they were not covered by the statutes and were barred by the applicable statute of limitations. The court granted plaintiffs’ motion regarding Insurance Law § 2123 which holds an insurance broker liable for failing to make a complete comparison when presenting various insurance policies but denied the motion as to Insurance Law § 4226 because there was no allegation that defendants misrepresented the terms and conditions of its own insurance policies. The court also held that the claim was not barred by the statute of limitations because it related back to when plaintiffs filed their original complaint. The court also granted plaintiffs’ motion to add one of the individual brokers as a named party based on his testimony that the entity through which he did business was not a legal entity but a marketing name.
Finkelstein et al. v. Lincoln Natl. Corp. et al., Nassau County, October 14, 2011, Warshawsky, J, Index No. 5372/09.