Call Us Today For A Free Quote | 866.940.1101
Professionals Insuring Professionals
 

In OneBeacon Insurance Co. v. T. Wade Welch & Associates, the 5th Circuit affirmed a $28 million judgement for bad faith ruling that the One Beacon "prior knowledge" exclusion did not apply.

As with many Lawyers Professional Liability Insurance policies OneBeacon issued a series of professional liability policies to T. Wade Welch & Associates beginning in December 2006 with a January 5, 1995 prior acts date. In the application for the first policy, Wade Welch, the principal of the firm, represented that after inquiring of each lawyer in the firm, he was not aware of “any fact or circumstance, act, error, omission or personal injury which might be expected to be the basis of a claim or suit” against the firm.”  This continued with each subsequent renewal.

The Welch law firm representing DISH failed to timely file a discovery motion against Russian Media Group.  In February 2008 the district court approved sanctions for Dish's failure to respond to discovery.  After the order Attorney Welch informed One Beacon of the discovery dispute and the sanctions order.  One Beacon declined coverage stating the the firm had not disclosed the error on the 2007 to 2008 renewal application.  The jury sided with the Welch Law Firm agreeing that the exclusion only applied to a wrongful act that the firm could reasonable foresee at the time of the application would result in a malpractice claim.  The jury awarded the law firm $33 million which the judge reduced to $28 million.

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Quick Contact
Referrals
We love referrals! And thank you even more for your continued business.
Customer Service
Self policy service any time of the day, directly from our website.
Join Our Newsletter
Stay in touch with the latest events, news and offers we have.
From Our Blog From Our Customers
Read More Read More
Stay In Touch With Us Helpful Site Links Read the News
Sign up now to receive new and updates Stay up-to-date with the latest industry, community and agency news through our newscenter. We also provide handy hints on how to save on your insurance.

Read More
We have the expertise to find you the right coverage at the right price 
Powered by Insurance Website Builder