This is a case where an insurance company sued a lawyer to rescind an insurance policy on the basis that the lawyer made material omissions in his application for insurance and in his application to renew his insurance. The lawyer missed the statute of limitations in a personal injury case and was tardy in filing an appeal of an adverse judgment. Despite these omissions, he told Liberty that he was not aware of any claim against him. The opinion summarizes this language as follows:
In addition to the renewal application prepared by Mr. Wolfe for the 2013 Policy, Mr. Wolfe also submitted a Notice of Acceptance Letter to Liberty on November 5, 2013, in which he wrote, in part: “this letter acknowledges that, after inquiry, I am not aware of any claims and/or circumstances, acts, errors, or omissions that could result in a professional liability claim since completion of my last application and supplements.” Id. ¶ 28. As a result of Mr. Wolfe’s certification on each application that he had no knowledge of circumstances that could result in potential claims against him, Liberty issued the 2011, 2012, and 2013 policies. Id. ¶¶ 22, 25, 29. Liberty now contends that these certifications were material misrepresentations. Id. ¶¶ 56-67.
The lawyer also failed to respond to Liberty’s requests for information for the two claims.
As a result, Liberty obtained a default judgment and the policy was rescinded.