Insurer Not On Hook For Suit Against Firm, 3rd Circ. Says

Law360 (November 8, 2019, 8:55 PM EST) -- An insurer does not have to cover a legal malpractice action against a Pennsylvania law firm and a name partner because the allegations deal with the lawyer’s activities related to his side businesses, the Third Circuit said Friday.

In a nonprecedential opinion, a circuit panel upheld a Pennsylvania federal court ruling last year that a former client’s suit against Hippo Fleming & Pertile Law Offices and attorney Charles Wayne Hippo Jr. was exempted from coverage by the outside business exclusion in the firm’s professional liability policy with Westport Insurance Corp.

That provision bars “coverage for any ‘claim based upon, arising out...

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