Tuesday, February 19, 2008

No Duty To Defend Or Indemnify

A lawyer who had borrowed sums of money from husband and wife clients under false pretenses and either used the loan proceeds to gamble or pay off his gambling debts committed suicide. The clients thereafter sued his estate and law firm (which had been formed after the course of conduct had begun) and sought to require the law firm's insurer to defend the case. A recent decision of the United States District Court for the Middle District of Pennsylvania concluded that the insurer was not obligated to either defend the actions or indemnify the losses. Thanks to the web page of the Pennsylvania Bar Disciplinary Board for alerting us to the decision. (Mike Frisch)


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