Public Adjuster Provided “Valuable Services” and Was Entitled to Compensation, Even Though Its Efforts Did Not Lead Directly to Settlement with the Insurer
The First Department, in a full-fledged opinion by Justice Saxe, determined a public adjuster (PAB), who initially aided the insured (Seward’s Park) in making its claim against the insurer, was entitled to compensation, even though its efforts did not lead directly to a settlement. After the initial settlement negotiations failed there was a trial at which the insured prevailed. That verdict was vacated and a new trial ordered. The matter settled before the second trial. PAB sought payment based upon the amount of settlement (per the initial contract with the insured). After a jury trial, PAB was awarded compensation, but the trial judge issued a judgment notwithstanding the verdict. The First Department reversed finding there was a valid line of reasoning supporting the award of compensation to PAB based upon its provision of “valuable services” to Seward’s Park when the claim was first made:
A public adjuster is defined by statute as one who, “for money, commission or any other thing of value, acts or aids in any manner on behalf of an insured in negotiating for, or effecting, the settlement of a claim or claims for loss or damage to property of the insured” (Insurance Law § 2101[g][2]). Insurance regulations not only require a compensation agreement for a public adjuster to be entitled to payment (11 NYCRR 25.6), but also prescribe the form of such an agreement (11 NYCRR 25.13[a], form 1), and limit a public adjuster’s right to a fee to circumstances in which “valuable services” were performed: “If a public adjuster performs no valuable services, and another public adjuster, insurance broker … or attorney subsequently successfully adjusts such loss, then the first public adjuster shall not be entitled to any compensation whatsoever” (11 NYCRR 25.10[b]). However, there is no clear definition of “valuable services,” or what portion of the ultimate settlement must be attributable to the services of the public adjuster for its services to be deemed “valuable” … . * * *
Viewing the foregoing evidence in the light most favorable to plaintiff, we conclude that there are valid lines of reasoning that could lead rational jurors to find that although PAB was not directly involved in the trial against the insurance company, it had provided “valuable services” in connection with the ultimate settlement of Seward Park’s insurance claim. These services could have included the preparation of the initial claim forms, the retention of a firm to investigate the damage and repairs, meeting with that firm and with architects, engineers, and counsel to discuss the claim, communicating with the insurance company regarding those repairs, and making Scheer — who was deposed — available to testify at the trial. From this, the jury could have rationally concluded that PAB’s work before trial constituted a valuable contribution to the trial and to the ultimate settlement, if only by preserving Seward Park’s claims and aiding in the damages assessment and investigation. Public Adj Bur., Inc. v Greater N.Y. Mut. Ins. Co., 2015 NY Slip Op 07942, 1st Dept 10-29-15