Who pays… the broker, the agent…or both?

Get Legal Help Today

 Secured with SHA-256 Encryption

Who pays… the broker, the agent…or both?

My broker and I (Realtor) were named in a lawsuit. Although the suit was ridiculous, my broker agreed to settle for 2500.00- to be paid by our e&o insurance.(they also covered the attornay’s fees, too) However, our insurance has a $2500 deductible which my broker insists is my responsibility. I thought it should be split… but who’s really the one to pay: the broker, the agent…or both?

Asked on May 25, 2009 under Real Estate Law, Pennsylvania

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

The facts as you presented them bring up a lot of questions and make answering this question a bit difficult.  First, did you have a lawyer that was given you by your E&O carrier?  You can not just agree to have your E&O carrier pay out an insurance claim without notifying them of the suit, giving them the opportunity to appoint a lawyer and defend you, allowing them to participate in the settlement negotiations, etc.  And did your broker have the ability to negotiate a settlement on your behalf? 

It sounds like the broker just negotiated a settlement without the proper notification to the E&O carrier, perhaps to avoid other issues that can occur with filing claims.  If you believe it should be split then tell the broker that.  But you will need to obtain a settlement and release from the lawsuit so I would suggest that you hire a lawyer even now or notify your E&O carrier asap.  Late Notice to them can be a reason for them to deny defending you in the claim. 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption