Anthony v. Independent Insurance Advisors
2012 V.I. Supreme LEXIS 30
Supreme Court of The Virgin Is...2012Background
- Consolidated appeal from a Virginia Islands case about a condo destroyed by Hurricane Marilyn in 1995; plaintiffs sued insurance broker Independent and Lichtman after Geneva Assurance Syndicate (lead insurer) became insolvent.
- Original complaint (April 23, 1998) alleged negligent and fraudulent misrepresentation, breach of fiduciary duties, bad faith, and contract against Independent, Lichtman, and Brathwaite & Associates.
- Amendments (1999, 2000) added more unit owners, shifted leadership to McLaughlin (until 2000), and then restored the Association as plaintiff; Anthony sought crossclaims.
- May 9, 2001 Anthony moved to amend to assert crossclaims against McLaughlin, Pomerantz, and the Association; Dagou moved to intervene May 9, 2001.
- January 16, 2002 all plaintiffs other than Anthony settled and signed a release, which the trial court held barred Anthony’s derivative claims because the Association represented owners in matters affecting insurance.
- December 17, 2009 the Superior Court granted summary judgment against Anthony and denied Dagou’s motion to intervene as untimely; Court remanded to consider Anthony’s motion to amend crossclaims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Dagou could intervene as of right. | Dagou asserted an interest and lack of adequate representation. | Motion untimely; discovery closed; no justified delay; interests aligned with existing parties. | Dagou’s intervention as of right was untimely; affirmed. |
| Whether Anthony’s claims are barred by the Association’s settlement. | Anthony argues rights as owner-in-common survive the Association’s settlement. | Declaration and covenants allowed the Association to bind owners in matters affecting insurance; settlement binding on Anthony. | Association settlement bars Anthony’s derivative claims; affirmed. |
| Whether the court properly denied Anthony’s motion to amend crossclaims. | Anthony sought leave to add crossclaims against McLaughlin and Pomerantz. | Trial court implicitly denied; decision within discretionary power. | Remand to allow consideration of the motion to amend. |
| Whether the trial court abused its discretion on other amendment issues. | N/A | N/A | Remand for amendment consideration consistent with opinion. |
Key Cases Cited
- Mountain Top Condominium Ass'n v. Dave Stabbert Master Builder, 72 F.3d 361 (3d Cir. 1995) (timeliness of intervention depends on stage and prejudice)
- Harris v. Pernsley, 820 F.2d 592 (3d Cir. 1987) (standards for intervention as of right (abuse of discretion))
- United States v. Alcan Aluminum, Inc., 25 F.3d 1174 (3d Cir. 1994) (abuses of discretion in intervention reviewed carefully)
- In re Fine Paper Antitrust Litig., 695 F.2d 464 (3d Cir. 1982) (final stage generally bars intervention as untimely)
- Princeton Biochemicals, Inc. v. Beckman Coulter, Inc., 223 F.R.D. 326 (D.N.J. 2004) (mid-trial intervention may be allowed with no prejudice)