This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

QBE Insurance Corporation Sued For More Than $500 Million For Bad Faith Claims Handling Practices

MIAMI, Nov. 24 /PRNewswire/ -- A Miami condominium association has sued its insurer, QBE Insurance Corporation, and its Florida general managing agent, for more than $500 million in damages, claiming bad faith and deception in handling hurricane claims.

Daniel S. Rosenbaum, the managing partner of Katzman Garfinkel Rosenbaum, LLP, in West Palm Beach, obtained a judgment against QBE from a Federal Court jury trial in February, 2009 for approximately $25 million, plus another $1.75 million being awarded in attorneys' fees, for Buckley Towers Condominium in Miami.

Rosenbaum has now filed another lawsuit in Miami-Dade County Circuit Court. This second  lawsuit is against QBE and its managing general agent, Florida Intracoastal Underwriters Limited Company, a wholly-owned subsidiary of Brown and Brown, Inc. (NYSE: BRO). The new lawsuit accuses both companies of engaging in deceptive and fraudulent bad faith claims handling practices as a general business practice, and having a specific intent to injure Buckley Towers while it sought insurance coverage to repair the heavily damaged buildings.

Earlier this year, the Miami-Dade County Unsafe Structures Board condemned as unsafe the two 17-story towers, located at 1321 N.E. Miami Gardens Drive.  The buildings were ordered to be demolished in late 2010 unless they are repaired, which cannot be done without the insurance money awarded to Buckley Towers.  Buckley Towers has 564 units, which are home to more than 1,200 residents.

"QBE, as a business decision, decided to let the buildings be condemned and physically torn down, and the residents forced out of their homes," the lawsuit states. "These condemnation proceedings would have been avoided had QBE fairly and honestly adjusted the claim."  The lawsuit alleges that QBE, in concert with Florida Intracoastal Underwriters, intentionally delays and fails to settle valid claims because it can "take advantage of the socioeconomic conditions of residents," the lawsuit states, "and the inability of residents to raise the money to make the repairs."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BRO $35.11 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs