Miami Court of Appeals Case of St. Paul Ins. v. Llorente: Malpractice Insurance does not Cover Trust Funds
If an attorney or other professional in West Palm Beach acts negligently you may have an action for malpractice. In order to protect themselves from exposure, often professionals will retain malpractice insurance. This means that collecting from a Palm Beach malpractice action can be relatively simple, compared to collecting judgments from an uninsured person. When your lawyer commits malpractice, you want them be insured but what if a policy exclusion stands in your way? The Third District Court of Appeals heard a case this last December over just such an issue.
Policy Exclusions
- In Florida it is not the burden of a party who is insured to show coverage, the existence of a policy creates a presumption of coverage.
- To the contrary it is actually the insurer’s duty to prove exclusions to coverage.
- If an insurer feels that a claim is outside the scope of their insurance policy the company may seek a declaratory judgment that the exclusion preempts coverage.
- What could exclude coverage?
- Intentional actions by the attorney made in bad faith for starters.
- Can you think of any more?
Third District Court of Appeals Hears the Case of St. Paul Fire & Marine Ins. v. Llorente
- The Third District Court of Appeals recently released its opinion in the case of St. Paul Fire v. Llorente on December 24, 2014. The Case No. is No. 3D12-1101.
- You can find the entire opinion by clicking here.
- The plaintiff in the underlying case was an attorney and title agent who disbursed millions of dollars held in trust before the conditions for disbursement were met. She went to her insurance to cover the malpractice claim, but they said they did not have to pay based on a policy exclusion.
- Do you think the lawyer had millions in the bank to pay the judgment herself?
- If you have a claim for legal malpractice after your Delray Beach Probate Litigator commits malpractice do you want that attorney to be covered or not?