United Pacific Insurance v. Price

United Pacific Insurance Company (United Pacific) brought this negligence action against defendant, its agent, to recover amounts it paid to a third party for injuries caused by its insured. The court granted defendant’s motion for summary judgment and United Pacific appeals. The issue is whether the admitted negligence of defendant was the cause of United Pacific’s loss.

Defendant is a general insurance broker and is authorized by a brokerage agreement to write insurance policies for United Pacific. In June, 1974, defendant obtained an application for automobile liability coverage from Bruce…