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Protectors Insurance Service, Inc. v. United States Fidelity & Guaranty Company

United States Court of Appeals for the Tenth Circuit
132 F.3d 612 (1998)


Protectors Insurance Service, Inc. (Protectors) (plaintiff) was an agent under contract with United States Fidelity & Guaranty Company (USF&G) (defendant). Protectors solicited commercial and personal insurance clients for USF&G, for which Protectors received a commission. In 1992, USF&G breached the parties’ contract and intended to terminate most of Protectors’ business. Consequently, Protectors’ owner sold the company’s assets then filed suit against USF&G for breach. At trial, Protectors submitted expert testimony that the company assets were sold at a loss caused by USF&G’s breach. Protectors’ owner also testified that he would have continued to run the business for 10 years but for USF&G’s breach. The jury found in favor of Protectors and awarded damages of (1) $35,000, representing the difference between the selling price of Protectors’ assets and what its fair market value would have been absent breach plus (2) $809,650 for lost future profits. USF&G appealed the damages award.

Rule of Law


Holding and Reasoning (Brown, J.)

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