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Legal Malpractice
: New York Attorney Malpractice BlogExcess Carriers and the Insured's Attorney in Legal Malpractice
By (Andrew Lavoott Bluestone)
Here is an Indiana Case in which the concept of equitable subrogation is attempted in a legal malpractice case. Here, insurer seeking equitable subrogation loses. In Queerey & Harrow LTD v. Transcontinental Ins. Co. two hurdles face the insurer: privity and policy. Attorney represents insured, and not carrier, much less the more distant excess carrier. The Indiana Supreme Court holds that there is not a sufficient relationship between the attorneys and the excess carrier.
The second hurdle is policy. Here the Supreme Court values the "obligations' of loyalty and client confidentiality over the right of a carrier to re-coup its [unnecessary?] losses.
Full post as published by New York Attorney Malpractice Blog on May 15, 2008 (boomark / email).
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