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Insurer Wins ‘Incompetent’ Atty Fight To Recoup $5.5M

Tiomkin Law Offices of Elliott Tiomkin > Legal News  > Insurer Wins ‘Incompetent’ Atty Fight To Recoup $5.5M

Insurer Wins ‘Incompetent’ Atty Fight To Recoup $5.5M

Law360 (September 3, 2020, 10:25 PM EDT) — A California federal judge Thursday axed a claims handler’s suit seeking additional coverage of its legal bills from an insurer that it says hired a bad lawyer to fend off underlying litigation involving a car crash, ruling instead in favor of the insurer’s counterclaim to recoup over $5.5 million in defense and arbitration costs it paid.

U.S. District Judge Janis L. Sammartino said that American Claims Management Inc.’s coverage claims are barred by Allied World Surplus Lines Insurance Co.’s policy exclusions, and since some of the claim handler’s legal bills should not have been covered, the insurer is entitled to recoup its over $5.5 million payment from…

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