Judge Rules HUB Professionally Negligent; Must Pay $4.3 Million

A Superior Court Judge ruled in favor of Southern California law firm Parker Shaffie LLP’s clients Clean & Sober Media, LLC and its former owner Richard Taite finding that international powerhouse HUB International Insurance Services must pay $4,367,735.11 in attorneys’ fees and costs. The court found the insurance broker HUB was professionally negligent and engaged in fraud by concealment and negligent misrepresentation (Clean & Sober Media, LLC, Richard Taite v. Hub International Insurance Services, Inc., Case No. 21STCV20391, Superior Court, Los Angeles County, December 29, 2023).

Superior Court Judge Maren Nelson’s ruling stems from HUB’s failure to tender an insurance claim to one of Clean & Sober Media’s insurers in a timely manner, and failing repeatedly to correct their failure and error, all the while falsely telling plaintiffs Clean and Sober Media that the claim had been tendered, when in fact it had not. The result was that the plaintiffs incurred millions of dollars in out-of-pocket attorney costs in defending themselves in court.

“Instead of its insurance company covering legal expenses, the plaintiffs were forced to pay millions in costs and fees in company litigation out of their own pocket,” says David Parker, Parker Shaffie LLP partner.

“This was a very unfortunate situation where HUB, the fifth largest brokerage in the world, should have known better. We are pleased that the court found against HUB in its failing to do right by its insured,” adds Parker Shaffie LLP partner Shawn Shaffie.

In addition, the court awarded pre-judgment interest on the $4,367,735.11 at 7 percent from July 21, 2021 to the date of the judgment entry.