O'Connor First
Serving All OfNew York And Vermont
877-886-4029 Toll Free
518-465-0400 New York

Federal court decides if insurer must cover malpractice lawsuit

Insurance companies offer their products to protect people in the event of unforeseen circumstances. New York consumers purchase insurance because they can't predict the future, and insurance companies assume the risk for them. However, it would not be a fair risk to the insurance provider if the client already knew trouble was on the way and didn't say anything before purchasing insurance. In fact, one insurance company in another state has filed a complaint in federal court because of just such a situation.

The insurance provider approved the application of an attorney for malpractice insurance, which became effective on Aug. 1. The lawsuit claims that the same day the company agreed to insure the attorney, one of the attorney's clients filed a malpractice lawsuit against him and the law firm. The malpractice claim alleges that the attorney breached his duties as general counsel to Sovereign Holdings, with millions of dollars at stake.

Reportedly, the malpractice claim had been in the wind for some time. The insurance company became aware of numerous emails and correspondence between the lawyer and Sovereign Holdings, an investment management company. The emails expressed the company's intention to sue the attorney for acts and omissions that allegedly took place during a divorce proceeding and involved a bank loan of almost $20 million. Nevertheless, the attorney indicated on his application for insurance that he had no pending or potential legal claims against him.

In this case, the insurance company is asking a federal court to rule that it is not responsible for covering the lawsuit, which is now underway. In situations in New York and beyond where an insurance company determines it should not have to honor a policy because the insured may have misled the company on the application, the parties may need a higher authority to decide the matter. For the best results, the assistance of an attorney skilled in insurance law is recommended.

Source: argusleader.com, "Insurer accuses lawyer of not disclosing malpractice claim", Jonathan Ellis, Nov. 17, 2017

No Comments

Leave a comment
Comment Information
Email Us For a Response

Speak To An Experienced Attorney.

High-Quality Representation At An Affordable Price. Contact Us Today.

Learn more about how we can help you by calling the firm at 877-886-4029.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

This site uses Google's Invisible reCAPTCHA, which is subject to Google's Privacy Policy and Terms of Use.

  • dri | The Voice of the Defense Bar
  • BEST'S Client Recommended 2019 | Insurance Attorneys
  • AV Preeminent
  • Bar Register Preeminent Lawyers
  • Lawyer of the Year
  • IADC
  • MPL
  • Best Lawyers
  • FDCC
  • Peer Rated
  • Plus
  • New York State Academy of Trial Lawyers
  • Lawyer of the Year
  • TIDA
  • Best Lawyers | Best Law Firms | US News |2019

20 Corporate Woods Boulevard
Albany, NY 12211

Toll Free: 877-886-4029
Phone: 518-465-0400
Fax: 518-465-0015
Albany Law Office Map

507 Main Street
Bennington, VT 05201

Toll Free: 877-886-4029
Fax: 518-465-0015
Map & Directions