Opinion ID: 2049700
Heading Depth: 1
Heading Rank: 4

Heading: the liability of warren nichols

Text: On April 5, 1984, the case of Alice Mongillo v. Warren E. Nichols, d.b.a was argued before us. This appeal was taken by Alice Mongillo in the event this court were to find that Nichols was not Atlantic's agent in distributing the risk between Atlantic and Aetna. Since we have determined that Nichols was not Atlantic's agent in that respect, we believe it appropriate to remand this case to the Superior Court in the light of this determination of agency. It is clear that if Nichols was not the agent of Atlantic and was not acting for a disclosed principal in determining the amount of coverage that he would place with Atlantic, he would certainly be liable for his own negligence. See Affleck v. Kean, 50 R.I. at 407-08, 148 A. at 325. The trial justice held that Nichols's conduct did constitute both negligence and breach of contract in the following terms: It is the opinion of the Court that Nichols should have advised the Mongillos, who relied upon him, to obtain a $300,000 protection and indemnity policy to meet the Aetna scope policy requirements and the Court finds that failure to so advise and procure a policy in said amount constituted negligence and a breach of contract. We are of the opinion that this determination and finding was essential to the court's decision in purporting to hold Atlantic liable as Nichols's principal. Although we disagree with the trial justice in respect to Nichols's agency in determining the distribution of the risk, we are in complete agreement with the trial justice that Nichols was negligent in giving advice that a $50,000 underlying policy sufficed to protect the Mongillos in respect to their new yacht. However, since the trial justice placed the responsibility for this negligence upon Atlantic, he did not reach the question of damages for which Nichols would be liable if he were not acting for a disclosed principal. Consequently, the case must be remanded to the trial justice for the purpose of determining the amount of damage that Alice Mongillo was entitled to receive from Nichols as a result of his negligence. For the reasons stated, Atlantic's appeal is sustained in part and denied in part. The papers in the case may be remanded to the Superior Court with directions to enter judgment in favor of Etheridge against Atlantic in the sum of $50,000 together with interest at the rate of 12 percent from March 1, 1974, and costs. Judgment already entered in favor of Aetna is hereby affirmed. The papers in the case of Alice Mongillo v. Warren E. Nichols, d.b.a. may be remanded to the Superior Court for further proceedings consistent with this opinion.