Judge Bars Heller From Buying Malpractice Insurance

Law360, New York (January 29, 2009, 12:00 AM EST) -- A bankruptcy judge has reportedly blocked Heller Ehrman LLP from buying a $3.5 million, three-year, $20 million tail legal malpractice insurance policy.

Judge Dennis Montali of the U.S. Bankruptcy Court for the Northern District of California upheld the unsecured creditors committee's objection Wednesday and prevented Ehrman from paying the premium on the policy, which would have cost the firm an estimated $10.25 million after adding in the required $2 million self-insured retention on each potential claim, the Recorder reported Thursday.

The creditors had argued that it...
To view the full article, register now.