Stromme v. Nasburg and Co.

Defendant, plaintiffs’ insurance broker, appeals from a judgment awarding damages to plaintiffs for liability which they incurred which was not covered by the errors and omissions policy that defendant procured for them. Unlike earlier policies defendant had obtained as plaintiffs’ agent, the policy did not apply to events that predated its effective date. Plaintiffs alleged that defendant’s failure to obtain retroactive coverage was negligent and was a breach of an implied contract. The negligence count was stricken on the ground that it was barred by the two-year limitation period of ORS…