Trussell Insurance Services, Inc. and Employment Management Service, LLC v. Image Solutions, Inc.
Trussell Insurance Services, Inc. and Employment Management Service, LLC (Trussell) appealed the denial of their motion for sanctions against Image Solutions, Inc. (Image). The underlying dispute originated from a worker's injury, where Image sought workers' compensation coverage through a policy procured by Trussell, which was subsequently denied due to the insurer's insolvency. Image then filed third-party claims against Trussell for negligence and breach of contract, leading Trussell to counterclaim for sanctions. Despite both parties acknowledging the necessity of an evidentiary hearing for the sanctions motion, none was conducted. The appellate court determined that Trussell waived its right to sanctions by failing to secure an evidentiary hearing and by participating in a non-evidentiary one. Consequently, the trial court's denial of the sanctions motion was affirmed.