Articles Tagged with Legal Malpractice Insurance

Published on:

ABRAMS, FENSTERMAN, FENSTERMAN, EISMAN, GREENBERG, FORMATO & EINIGER, LLP v. UNDERWRITERS AT LLOYD’S, Dist. Court, ED New York 2013 – Google Scholar.

Every year, when I receive my legal malpractice insurance application, there is always a question on whether I am an officer or director of an outside entity.

In this case, one member of the law firm was involved in an outside entity, a corporation, American Gulf Insurance, LLC, that allegedly fraudulently induced certain investors to invest in the company. The plaintiffs, in the underlying case, sued the law firm for fraud and legal malpractice. The plaintiffs alleged that the lawyers negligently advised them to invest in the entity. Howard Fensterman, one of the name partners of the law firm, was allegedly an owner of American Gulf Insurance. Fensterman allegedly had more than a passive role in the entity.

Published on:

LEE & AMTZIS, LLP v. American Guar. & Liab. Ins. Co., 2013 NY Slip Op 30018 – NY: Supreme Court 2013 – Google Scholar.

This case is one of a growing group of cases where insurers contest their duty to defend an insured lawyer after the lawyer is sued for legal malpractice. The plaintiff, Ms. Kurtin, alleged that she was represented by the law firm in negotiating a loan with one of the principals of that firm, Randy Lee. [If true, the allegations of legal malpractice are problematic. Lee was one of the persons getting a benefit from the loan from Kurtin. He could not fairly and adequately represent her in connection with that loan transaction. Lee’s interests and those of Kurtin were directly adverse.

The lawyers gave prompt notice to their legal malpractice insurer, which denied coverage. The insurer argued that the conflict of interest between Lee and Kurtin barred coverage under the legal malpractice policy: