Lai King Quan Properties, LLC has filed a lawsuit against multiple insurance entities and individuals, alleging negligence and breach of contract in failing to secure adequate insurance coverage for their property. The complaint was filed on February 13, 2025, in the Superior Court of California, County of San Francisco, naming Gordon Associates Insurance Services, Inc., Commercial Insurance Services, Inc., GAIS Insurance Services, Kern Insurance Associates, KIA Insurance Associates, PCF Insurance Services of the West, LLC., Trucordia, David Gordon, Jeffrey Stephens among others as defendants.
The case centers around Lai King Quan Properties' claim that the defendants failed to procure fire insurance for a property located at 1435-1441 Polk Street in San Francisco. According to the plaintiff's allegations, despite repeated assurances from the defendants that they had secured appropriate coverage following a notice of non-renewal from their previous insurer Specialty Programs & Facilities Managers, Inc., no such coverage was in place when a fire occurred on March 7, 2023. This fire resulted in substantial damage to the property and its contents.
Lai King Quan Properties asserts that they relied on the expertise and assurances of the broker defendants to secure necessary insurance coverage. The complaint details various duties owed by these brokers including obtaining requested insurance coverage and providing accurate advice regarding policy adequacy. It accuses them of failing to fulfill these obligations and misleading the plaintiff into believing adequate coverage was procured. The plaintiff claims that this misrepresentation led them not to seek alternative insurance options which were readily available in the market.
The lawsuit seeks damages exceeding $500,000 for losses incurred due to the fire including repair costs and lost rental income. In addition to breach of contract claims, Lai King Quan Properties is pursuing causes of action for negligence and negligent misrepresentation against all named defendants. They argue that these failures constituted grave abuses of corporate form warranting piercing the corporate veil.
Represented by attorneys Demian I. Oksenendler and Maribel J. Sanchez from Mannion Lowe & Oksenendler law firm based in San Francisco; Lai King Quan Properties is demanding special damages according to proof alongside general damages and punitive damages where applicable. They also request recovery of legal costs incurred throughout this litigation process.
This case is being presided over under Case ID CGC-25-622369 with potential implications for how insurance brokerage responsibilities are perceived within contractual relationships involving property owners seeking protection against unforeseen events like fires.