Texas Insurance Company has filed a lawsuit against a California law firm and one of its attorneys, alleging legal malpractice, breach of contract, and breach of fiduciary duty. The complaint was filed in the Superior Court of California, County of San Francisco on December 31, 2024, naming Hinshaw & Culbertson LLP and attorney Bradley M. Zamczyk as defendants.
The case revolves around an underlying personal injury matter where Texas Insurance Company had assumed a $1 million liability insurance policy for Desoto Cab Co. through an Assumption and Indemnity Agreement. The defendants were retained to represent Desoto Cab Co., but the plaintiff claims that they failed to adequately advise them about significant legal risks associated with Proposition 51 during the trial proceedings. This failure allegedly led to a jury verdict awarding over $11 million in damages against Desoto Cab Co., despite their being found only 3% at fault.
According to the complaint, Texas Insurance Company asserts that the defendants did not fulfill their professional obligations by failing to inform them about joint and several liability risks under Proposition 51. This lack of communication deprived the insurer of making informed decisions regarding potential settlements within policy limits before a court order confirmed substantial economic liabilities exceeding $10 million. "Defendants' failure to properly advise Plaintiff regarding Proposition 51 deprived Plaintiff of the opportunity to make an informed decision regarding settlement," reads part of the complaint.
The plaintiff seeks compensatory and consequential damages from the court for alleged negligence in handling the defense, inadequate communication, and misrepresentation throughout the litigation process. They argue that if properly advised, they would have settled within policy limits and avoided extensive financial exposure resulting from economic damages awarded in favor of Carissa Copeland—the plaintiff in the underlying personal injury case.
Representing Texas Insurance Company are attorneys Matthew J. Negrin and Amy Gershoony from Negrin LLP based in Los Angeles. The case is identified under Case No.: CGC-24-621093 with Judge Sahar Enayati serving as Deputy Clerk for this filing.