Undisclosed Risk Nixes Pepper Hamilton’s $10M Excess Insurance in Malpractice Case

Two excess insurers for Pepper Hamilton don't have a duty to indemnify the law firm and a partner in a malpractice case. That's because they didn't disclose a known risk of litigation to the carriers before the $10 million contract of umbrella coverage was issued, says New York's top court. The New York Court of Appeals held Pepper Hamilton had a duty to disclose in advance to the insurers the firm's potential involvement in litigation concerning fraudulent loan securitization activities by its client, Student Finance Corp., according to the New York Law Journal. The court applied Pennsylvania law in the case, which the parties agreed was controlling.

abajournal.com Undisclosed Risk Nixes Pepper Hamilton’s $10M Excess Insurance in Malpractice Case
Thu, Oct 22, 2009 abajournal.com