Malpractice Insurer Cannot Deny Coverage Because Attorney Admitted Mistake to Client

A clause in a malpractice insurance policy that precludes insured lawyers from admitting liability without the insurer’s consent cannot be enforced because it interferes with attorneys’ ethical obligation to keep clients apprised of significant events in their case, the Illinois Appellate Court, First District, ruled Nov. 9 (Illinois State Bar Ass’n Mutual Insurance Co. v. Frank M. Greenfield and Associates PC, Ill. App. Ct. 1st Dist., No. 1-11-0337, 11/9/12).

The case involved Frank M. Greenfield, a lawyer who made a drafting error in a client’s will, informed the client’s beneficiaries of his mistake, and was then sued by those beneficiaries for malpractice.

Read More at BNA.com