Friday, September 28, 2012
The New Hampshire Supreme Court has reversed and remanded a decision to rescind a law firm's professional liability insurance for an allegedly false statement on the policy application.
The matter involved the misappropriation of estate funds by a law firm partner.The other partner was not aware of the thefts, although his conduct facilitated the theiving partner's access to the entrusted funds. The two lawyers had been partners for over 45 years.
The court held that the knowledge of the bad partner could not be imputed to the innocent one under its interpretation of the "innocent insured" provision of the policy.
Our earlier coverage of a suit by the disbarred attorney's spouse against a Nixon Peabody attorney is linked here. (Mike Frisch)