Professional Documents
Culture Documents
OHAGAN
SPENCER
LLC
Laura R. Zaroski
312-422-6142 - Direct
312-422-6110- Fax
[zaroski@ohaqanspencer.com - E-mail
David A. Gauntlett
Suzanne Gauntlett
Gauntlett & Associates
18400 Von Karman, Suite 300
Irvine, CA 92612
As you know, this fum represents the Insurer subscribing to the above-referenced
Employment Practices Liability Insurance Policy issued to David A. Gauntlett;. dba Gauntlett &
Associates (the "Insured"). In this connection, we recently received notice of a civil lawsuit filed
by Mariam Tarzi ("Claimant"). We have reviewed the material provided by the Insured, as well
as the above-referenced Policy.
Generally, we note that the Policy was effective July 10,2006 to July 10, 2007. The
Policy has a Limit of Liability of$I,OOO,OOO for each First Party Insured Event and a $10,000
Self Insured Retention for each Insured Event. The Self Insured Retention applies to covered
Defense Costs as well as any covered settlement or judgments. Covered Defense Costs include
the Limit of Liability and are subject to the $10,000 Self Insured Retention. Accordingly, the
Insured is responsible for payment of the SelfInsured Retention, and the Insurer's obligation to
pay applies only to the amount in excess of the Self Insured Retention.
EXHIBIT
3
Case5:11-cv-00455-LHK Document1-3 Filed01/28/11 Page2 of 8
David A Gauntlett
Suzanne Gauntlett
September 27,2007
Page 2
Based upon the material provided, we understand that Claimant worked at the Insured's
firm for over nine years as an Assistant Finn Administrator!Assistant to David Gauntlett: On
May 9, 2007, Claimant sent a letter to the Insured claiming that she was owed unpaid overtime
wages, with interest. Thereafter, on May 14,2007, Claimant submitted her letter ofresiguation
to the Insured. In response, the Insured sent a series ofletters dated May 16, 2007 and May 25,
2007, disputing Claimant's allegations. .
On August 16, 2007, Claimant filed a lawsuit in the California Superior Court, Orange
County, alleging that the Insured: (I) failed to pay Claimant overtime wages; (2) failed to pay
Claimant wages due to her resiguation pursuant to Labor Code §§ 201-203, 1199; (3) failed to
provide Claimant with rest breaks and meal periods; (4) knowingly and intentionally failed to
comply with itemized employee wage statement provisions (Lab. Code, §226(B)); and that the
Insured violated the unfair competition law (Bus. § Prof. Code, §§ 17200-17208). The Insured
was served notice of the civil complaint on or about August 16,2007. The Insured tendered
notice ofthe civil complaint to the Insurer on September 6, 2007.
David A. Gauntlett
Suzanne Gauntlett
September 27,2007
Page 3
A. CIaim(s) means:
David A. Gauntlett
Suzanne Gauntlett
. September 27, 2007
Page 4
* * *
C. Employment-related Discrimination means tehnination of the
employment relationship, a demotion, a failure or refusal to hire or
promote, denial of an employment benefit or the taking of any
adverse or differential employment action because of race, color,
religion, age, sex, disability, pregnancy, sexual orientation,
national origin, or any other basis prohibited by federal, state or
local law, including but not limited to the Family Medical Leave
Act, Age Discrimination in Employment Act, Americans with
Disabilities Act, the Fair Labor Standards Act and the Unifonned
Services Employment and Reemployment Rights Act.
* * * *
F. . First Party Insured Event means actual or alleged acts of
Employment-related Discrimination, Employment-related
Harassment, or Inappropriate Employment Conduct by an insured
against an Employee, fonner Employee or applicant for
employment with an insured entity.
David A. Gauntlett
Suzanne Gauntlett.
September 27,2007
Page 5
* * * *
1. Loss
1. Loss means:
David A. Gauntlett
Suzanne Gauntlett
September 27,2007
Page 6
Claimant's civil complaint alleges failure to pay certain wages owed. Under the above
Policy, Claimant's allegations do not fall within the Policy's definition of covered "Loss."
Accordingly, the Insurer is constrained to advise that there is no coverage for this matter.
Additionally, we note Section II. ofthe Policy entitled EXCLUSIONS: WHAT IS NOT
COVERED, which provides as the follows:
J. Gain or Profit. This policy does not cover any Loss based upon,
arising out of, or attributable to an insured gaining in fact any
profit, remuneration or fmancial advantage to which such insured
was not legally entitled.
* * * * *
Case5:11-cv-00455-LHK Document1-3 Filed01/28/11 Page7 of 8
David A. Gauntlett
. Suzanne Gauntlett
September 27,2007
Page 7
At noted above, Claimant is seeking to be reimbursed for unpaid overtime and other
wages that were allegedly withheld. The Exclusions section of the Policy specifically excludes
coverage for wages owed. Accordingly, we again must advise that there is no coverage.
The Insurer's enmneration of specific coverage issues in no way serves to waive or limit
the rights that the Insurer has, or may obtain. Further, the Insurer reserves the light to
supplement and/or amend this letter to address additional coverage issues as they may arise,
including rescission and rights under Buss v. Transamerica, based upon all of the provisions,
terms, conditions, exclusions, endorsements, and definitions found in the Policy and additional
facts tliat may.come to the Insurer's attention. Please adviSe us immediately if you believe you
have infonnation that may change the above coverage detennination .. Nothing stated herein and
no further action taken by the Insurer or on its behalf should be construed as a waiver of any of
its rights under ilie Policy, at law or in equity. On the contrary, by providing this or any prior
correspondence to the Insured, engaging in any prior or future discussions with the Insured, or
paying or agreeing to pay any amount to or on behalf of the Insured, the Insurer does not waive
any rights that it has under the Policy, at law or in equity.
Please be advised tl,at pursuant to regulations promulgated under the California Insurance
Code, if you believe that this Claim has been wrongfully denied or rejected, in whole or in part,
you may have the matter reviewed by the California Department of Insurance. The California
Department of Insurance can be contacted at California Department of Insurance Claim Services
Bureau, 11ili Floor, 300 South Spling Street, Los Angeles, California 90013, (213) 897-5961.
t=VU"l 7
Case5:11-cv-00455-LHK Document1-3 Filed01/28/11 Page8 of 8
David A. Gauntlett
Suzanne Gauntlett
September 27,2007
Page 8
If you have any questions regarding the above, please do not hesitate to contact me.
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