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Judge rules Rick Caruso can be deposed in suit against insurer
LA County Nov 03, 2022
Courtesy of Thitiphat1985
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Mayoral candidate Rick Caruso will have to sit for a deposition within 60 days as part of an insurance company’s defense of a lawsuit brought by companies owned by the billionaire businessman involving coverage provided in a separate case that resulted in a multimillion-dollar settlement concerning condominium unit damage, a judge ruled Thursday.
Los Angeles Superior Court Judge Jon R. Takasugi granted the motion to compel Caruso’s deposition that was brought by Arthur J. Gallagher & Co. Insurance Brokers of California. The judge also ruled that the contents will be kept confidential between the parties. The plaintiffs, including Caruso Affiliated Holdings LLC, filed the negligence action against Gallagher & Co., their former insurance broker, in April 2021. Gallagher funded the defense and a $22.25 million settlement of a separate case involving luxury condominiums Caruso built at his Americana at Brand shopping center in Glendale.
The Caruso companies allege there are significant gaps in coverage for the Excelsior at Americana at Brand condominium development, resulting in considerable expenses to Caruso when residents of the project sued over leaking showers and mold.
The plaintiffs’ attorneys objected to the Caruso deposition request, arguing in their court papers that as the Gallagher should first seek “less intrusive” means of getting the information they expected Caruso to divulge by deposing others, including those who would be most knowledgeable about the issues.
The judge disagreed.
“Gallagher seeks information which either directly concerns communications which only Mr. Caruso could speak to, or decisions which he participated in,” Takasugi wrote.
In addition, a former Caruso executive has said Caruso made the final decisions about whether or not to purchase the insurance policies, according to Takasugi.
Gallagher & Co. lawyers maintained in their court papers that Caruso communicated with the insurer’s president, Scott Firestone, about insurance options and that therefore the insurer was entitled to question Caruso about those discussions.
