Dismissal for Failure to Allege Facts to Establish Breach of Contract
Post 5005
Read the full article at https://lnkd.in/gRJ8vggM, see the full video at https://lnkd.in/gEwNjztD and at https://lnkd.in/gGb947FR and https://zalma.com/blog plus more than 5000 posts.
Boat Owner Only Gets Insurance he Asked the Broker to Obtain
After a boating accident in Greece the boat owner, Nicholas Galakatos (“plaintiff” or “Galakatos”), made claims against defendants, Marsh & McLennan Companies, Inc. and others (collectively, “defendants”) for negligence, breach of contract and breach of fiduciary duty. The case arose from a boating accident in Greece involving Galakatos’ boat, “Galani,” which collided with another vessel in September 2018. This resulted in damage to both vessels and personal injuries to some passengers.
Nicholas Galakatos v. Marsh & McLennan Companies, et al., Civil Action No. 24-11259-NMG, United States District Court, D. Massachusetts (February 24, 2025)
Court’s Decision
The court granted the defendants’ motion to dismiss. The court found that Galakatos failed to state a viable claim for breach of contract because he did not allege any specific provision of the purported agreement that the defendants allegedly breached.
Background
Plaintiff is a resident of Massachusetts and Vermont and owns property in Greece. In 2015, he purchased a boat (“Galani”) to use in Greece. Defendants are associated entities that offer professional services including insurance brokerage. Plaintiff retained defendants’ insurance brokerage services for the first time in 2006 and have purportedly relied since then on their advice to procure insurance.
Plaintiff purchased a one-year, $10,000,000 excess coverage liability policy from American International Group (“AIG”). The AIG policy was to provide coverage for losses sustained “anywhere in the world.” Plaintiff also purchased third party liability insurance for Galani from Groupama Insurances (“Groupama”) in May, 2018. He contends that he disclosed his ownership of Galani and his Groupama insurance policy to defendants that same month.
In September, 2018, Galani collided with another vessel off the coast of Greece, resulting in damage to both vessels, as well as personal injuries to some passengers aboard the other vessel. Plaintiff informed defendants of the accident, and they requested information concerning all of his property and liability exposures, even those for which it may not be providing coverage.
The collision spawned litigation as a result of which plaintiff paid an undisclosed amount in settlement of claims against him. He then made a claim on his AIG policy, which was denied, allegedly because defendants failed to add the Groupama policy to the AIG policy.
Plaintiff sued claiming defendants failed to place and procure adequate liability insurance coverage for Galani.
Legal Standard
Under Massachusetts law, breach of contract claim requires a plaintiff to demonstrate that 1) a valid, binding contract existed, 2) the defendant breached the terms of the contract and 3) the plaintiffs sustained damages as a result of the breach. Similarly, a breach of contract claim under New York law requires a plaintiff to allege 1) the existence of a contract, 2) the defendant’s breach of his or her contractual obligations and 3) damages resulting from the breach.
Galakatos failed to state a viable claim for breach of contract because his complaint does not allege any specific provision of the purported agreement between plaintiff and defendants that defendants allegedly breached.
Plaintiff’s negligence claim is deficient because he does not allege that defendant was duty-bound to procure insurance in the manner he asserted. According to the complaint, defendant had a duty of care to plaintiff to procure adequate third party liability insurance for Galani up to $20 million.
Breach of Fiduciary Duty
Finally, defendant contends that plaintiff’s breach of fiduciary duty claim is not actionable because the complaint does not allege sufficient facts to show that a fiduciary relationship existed between plaintiff and defendants. A fiduciary duty between a broker and an insured arises only in the narrow instance where there is a “special circumstance” or “special relationship” between them which, ordinarily, is a question of fact. Because, Plaintiff failed to state a claim for breach of fiduciary duty he did not adequately allege a fiduciary relationship existed between him and defendants.
ZALMA OPINION
Galakatos’ complaint was that he received the insurance he asked Marsh to acquire rather than the insurance coverage he needed. Insurance brokers, like Marsh, owe a duty to buy the insurance requested by the insured. The facts alleged revealed that they did so and that there was no allegation of a special relationship requiring that Marsh deal with the insured as a fiduciary. Insurance brokers are not required to be clairvoyant and purchase the coverage the insured, like Galakatos, needed rather than what he ordered.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
Please tell your friends and colleagues about this blog and the videos and let them subscribe to the blog and the videos.
Subscribe to my substack at https://barryzalma.substack.com/subscribe
Go to X @bzalma; Go to Newsbreak.com https://www.newsbreak.com/@c/1653419?s=01; Go to Barry Zalma videos at Rumble.com at https://rumble.com/account/content?type=all; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg
Go to the Insurance Claims Library – https://lnkd.in/gwEYk
Interpleader Protects All Claimants Against Life Policy and the Insurer
Who’s on First to Get Life Insurance Proceeds
Post 5184
See the full video at https://lnkd.in/gyxQfnUz and at https://lnkd.in/gAd3wqWP, and at https://zalma.com/blog plus more than 5150 posts.
Go to X @bzalma; Go to Barry Zalma videos at Rumble.com at https://lnkd.in/gRthzSnT; Go to Barry Zalma on YouTube- https://lnkd.in/g2hGv88; Go to the Insurance Claims Library – https://lnkd.in/gwEYk.
Interpleader Protects All Claimants Against Life Policy and the Insurer
In Metropolitan Life Insurance Company v. Selena Sanchez, et al, No. 2:24-cv-03278-TLN-CSK, United States District Court, E.D. California (September 3, 2025) the USDC applied interpleader law.
Case Overview
This case involves an interpleader action brought by the Metropolitan Life Insurance Company (Plaintiff-in-Interpleader) against Selena Sanchez and other defendants (Defendants-in-Interpleader).
Key Points
Plaintiff-in-Interpleader’s Application:
The Plaintiff-in-Interpleader...
A Claim by Any Other Name is not a Claim
Post 5182
It is Imperative that Insured Report Potential Claim to Insurers
Read the full article at https://lnkd.in/gfbwAsxw, See the full video at https://lnkd.in/gea_hgB3 and at https://lnkd.in/ghZ7gjxy, and at https://zalma.com/blog plus more than 5150 posts.
In Jeffrey B. Scott v. Certain Underwriters At Lloyd’s, London, Subscribing To Policy No. B0901li1837279, RLI Insurance Company, Certain Underwriters At Lloyds, London And The Insurance Company, Subscribing To Policy No. B0180fn2102430, No. 24-12441, United States Court of Appeals, Eleventh Circuit (August 25, 2025) the court explained the need for a claim to obtain coverage.
Case Background:
This appeal arises from a coverage dispute under a Directors & Officers (D&O) insurance policy. Jeffrey B. Scott, the plaintiff-appellant, was terminated from his role as CEO, President, and Secretary of Gemini Financial Holdings, LLC in October 2019. Following his termination, Scott threatened legal action against Gemini, and ...
A Claim by Any Other Name is not a Claim
Post 5182
It is Imperative that Insured Report Potential Claim to Insurers
Read the full article at https://lnkd.in/gfbwAsxw, See the full video at https://lnkd.in/gea_hgB3 and at https://lnkd.in/ghZ7gjxy, and at https://zalma.com/blog plus more than 5150 posts.
In Jeffrey B. Scott v. Certain Underwriters At Lloyd’s, London, Subscribing To Policy No. B0901li1837279, RLI Insurance Company, Certain Underwriters At Lloyds, London And The Insurance Company, Subscribing To Policy No. B0180fn2102430, No. 24-12441, United States Court of Appeals, Eleventh Circuit (August 25, 2025) the court explained the need for a claim to obtain coverage.
Case Background:
This appeal arises from a coverage dispute under a Directors & Officers (D&O) insurance policy. Jeffrey B. Scott, the plaintiff-appellant, was terminated from his role as CEO, President, and Secretary of Gemini Financial Holdings, LLC in October 2019. Following his termination, Scott threatened legal action against Gemini, and ...
Barry Zalma: Insurance Claims Expert Witness
Posted on September 3, 2025 by Barry Zalma
The Need for a Claims Handling Expert to Defend or Prove a Tort of Bad Faith Suit
© 2025 Barry Zalma, Esq., CFE
When I finished my three year enlistment in the US Army as a Special Agent of US Army Intelligence in 1967, I sought employment where I could use the investigative skills I learned in the Army. After some searching I was hired as a claims trainee by the Fireman’s Fund American Insurance Company. For five years, while attending law school at night while working full time as an insurance adjuster I became familiar with every aspect of the commercial insurance industry.
On January 2, 1972 I was admitted to the California Bar. I practiced law, specializing in insurance claims, insurance coverage and defense of claims against people insured and defense of insurance companies sued for breach of contract and breach of the implied covenant of good faith and fair dealing. After 45 years as an active lawyer, I asked that my license to practice law be declared inactive ...
The Need for a Claims Handling Expert to Defend or Prove a Tort of Bad Faith Suit
© 2025 Barry Zalma, Esq., CFE
When I finished my three year enlistment in the US Army as a Special Agent of US Army Intelligence in 1967, I sought employment where I could use the investigative skills I learned in the Army. After some searching I was hired as a claims trainee by the Fireman’s Fund American Insurance Company. For five years, while attending law school at night while working full time as an insurance adjuster I became familiar with every aspect of the commercial insurance industry.
On January 2, 1972 I was admitted to the California Bar. I practiced law, specializing in insurance claims, insurance coverage and defense of claims against people insured and defense of insurance companies sued for breach of contract and breach of the implied covenant of good faith and fair dealing. After 45 years as an active lawyer, I asked that my license to practice law be declared inactive and became a consultant and expert witness for lawyers representing insurers and lawyers ...
APPRAISAL AWARD SETS AMOUNT OF DAMAGES RECOVERED FROM INSURER
Post 5180
See the full video at https://rumble.com/v6yd2z0-evidence-required-to-prove-breach-of-contract.html and at https://youtu.be/2ywEjs3hZsw, and at https://zalma.com/blog plus more than 5150 posts.
It’s a Waste of Time to Sue Your Insurer if You Don’t Have Evidence
Evidence Required to Prove Breach of Contract
Read the full article at https://www.linkedin.com/pulse/evidence-required-prove-breach-contract-barry-zalma-esq-cfe-rfelc, see the full video at https://rumble.com/v6yd2z0-evidence-required-to-prove-breach-of-contract.html and at https://youtu.be/2ywEjs3hZsw, and at https://zalma.com/blog plus more than 5150 posts.
It’s a Waste of Time to Sue Your Insurer if You Don’t Have Evidence
In Debbie Beaty and Jonathan Hayes v. Homeowners Of America Insurance Company, No. 01-23-00844-CV, Court of Appeals of Texas, First District (August 26, 2025) Debbie Beaty and Jonathan Hayes filed a claim under their homeowner’s insurance policy with Homeowners of ...
