This Is the Reason for the Lawyer’s specialized Liability Insurance C…

This Is the Reason for the Lawyer’s specialized Liability Insurance C…

Studies indicate that specialized liability lawsuits against lawyers are on a emotional rise. The reasons for the lawsuits run the complete gamut of associated accusations, from unintentional errors to without of fully dealing with the client’s worries to conflict of interest to actual breach of fiduciary duty.

Understandably, of course, having insurance protection is something that all attorneys and attorney companies should have in place.

Continue reading for attorney specialized liability insurance claim scenarios.

Malicious Prosecution

An attorney’s company brought an eleven-count complaint in the name of its client. Then, the action was dismissed. The client turned around and sued the law firm for malicious prosecution. The legal company was not too concerned because it was clear that the plaintiff could not succeed on all counts of the case. This is the reason why it went ahead with a defense. To the law firm’s chagrin, the wealthy plaintiff was intent on harming them. He consequently chose to bring the case before the trial and appellate courts, resulting in more than $1 million payouts for the insurance company’s defense.

Legal Malpractice/Legal Error

A legal company filed a bad faith complaint against one insurance provider in the name of a few homeowners. The lawsuit referred to complaints about the insurance company’s denial of associated water and mold damage claims. The law firm helped ease a settlement in which $190,000 was awarded to the homeowners. Following the settlement the homeowners brought a $635,000 lawsuit against the law firm in regard to legal malpractice for allegedly taking too much time to file the original complaint, in addition as for what they claimed were serious specialized errors. The homeowners said they were forced into the settlement – something that left with recompense of less than complete value as a consequence of a debilitated case. The law firm’s insurance paid approximately $100,000 in defense costs that ended resulted in a $120,000 settlement.

Negligence or Breach of Contract and Fiduciary Duty

A law firm was stated to defend individuals from an embezzlement of family funds lawsuit. After all sides of the claim decided to put the family home up for sale at a fair market value, the suit was dismissed. The past clients turned around and filed a complaint against the law firm for negligence, breach of contract, breach of fiduciary duty, intentional infliction of emotional distress, misrepresentation, statutory violations and constructive fraud. The past clients claimed they had been taken for a ‘ride’ in respect to the selling of the family character. They demanded payment of several hundred thousand dollars due to the escalation in the real estate market. Prior to jury selection, the plaintiffs determined it was in their interest to terminate the lawsuit. Currently, the plaintiffs have asked for an allurement. The law firm’s insurance covered about $200,000 in the defense as of now in this current saga.

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