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January 5, 2015 Professional Liability

Settlement of Ill-Gotten Gains Suit Does Not Constitute Repayment or Restitution

On Tuesday, December 16, in U.S. Bank Nat. Ass’n v. Indian Harbor Ins. Co., 2014 WL 7183851 (D. Minn. Dec. 16, 2014), the US District Court for the District of Minnesota granted US Bank’s summary judgment motion, finding insurance coverage in an overdraft-fee dispute settlement.

The three underlying class action lawsuits were filed against US Bank National Association and US Bancorp by plaintiffs claiming the bank unlawfully inflated customers’ overdraft fees. The banks provided customers with account overdraft protection and charged a fee for each …

January 5, 2015 Professional Liability

Illinois Appellate Court Rejects Professional Liability Coverage for Junk Fax Claim

In Margulis v. BCS Insurance Co., 2014 IL App (1st) 140286, the Illinois Appellate Court affirmed a circuit court’s grant of summary judgment in favor of BCS Insurance Company (BCS), finding that it was not obligated to defend or indemnify its insured, Bradford & Associates (Bradford), under an insurance agents and brokers professional liability policy. The Appellate Court concluded that Bradford’s alleged conduct did not arise out of Bradford’s business in “rendering service for others” as an insurance agent.

The underlying lawsuit arose out …

November 5, 2014 Professional Liability

Illinois Federal District Court Concludes Prior Knowledge Exclusion Precludes Coverage for Legal Malpractice Suit

In Cardenas v. Twin City Fire Insurance Company, No. 13 C 8236, 2014 U.S. Dist. LEXIS 132420 (N.D. Ill. Sept. 19, 2014), Judge Virginia Kendall of the Northern District of Illinois determined that the Prior Knowledge Exclusion in the subject legal malpractice insurance policies barred the insurer’s duty to defend.

The dispute between Twin City Fire Insurance Company (Twin City) and Maria Cardenas arose when Cardenas’ attorney, John Ambrose of Ambrose & Associates, unsuccessfully represented Cardenas in a civil rights action against the City …

October 30, 2014 Policy Conditions, Considerations, Construction, and Formation / Professional Liability

Third Circuit Affirms Applicability of ‘Misappropriation’ Limitation Clause in Professional Liability Policy to Class-Action Fraud Scheme

On October 10, 2014, the Third Circuit Court of Appeals affirmed a lower court’s ruling that a professional liability insurance policy’s “misappropriation” sub-limit clause applied to limit the amount of defense costs owed to an insured whose employee plead guilty to mail and wire fraud in Camico Mutual Ins. Co. v. Heffler, Radetich & Saiita, LLP, 2014 U.S. App. LEXIS 19636 (3d Cir. Oct. 10, 2014).

Christian Penta was a senior claims analyst for Heffler, Radetich & Saiita, LLP, an accounting firm that distributes …

June 26, 2013 Professional Liability

Professional Liability Monthly – June Edition is Now Available

For a free copy of this month’s edition of Professional Liability Monthly, click here.

To be added to our circulation list, where you will receive this publication for free each month via email, please contact Brian Biggie at [email protected].

For cases featured in this month’s edition, click here.…

April 22, 2013 Professional Liability

Firm Left Without Malpractice Insurance For Botched Sales Contract

Koransky, Bouwer & Proacky, P.C. v. The Bar Plan Mut. Ins. Co.
(7^th Cir. (Ind.) Apr. 2, 2013)

The Seventh Circuit recently affirmed a ruling that left a law firm without insurance coverage for a malpractice claim arising from a sales transaction gone awry. The court held that the firm’s failure to disclose the potential lawsuit to its malpractice insurer precluded coverage.

The plaintiff law firm represented a potential buyer in the purchase of four Rite Aid drugstores in Ohio. Three of the four …