11th Circ. Says Medmarc Must Cover Firm's Fraud Losses

Law360, New York (May 27, 2011, 7:23 PM EDT) -- The Eleventh Circuit on Friday ruled that Medmarc Casualty Insurance Co. was obligated under a professional liability policy to replace trust funds that Nardella Chong PA lost to a scam.

After its clients' money was mistakenly transferred to a scam artist, the Florida-based firm replaced the lost funds with its own money, and sought a declaratory judgment that Medmarc was obligated to cover the mistakenly transferred funds. But a district court absolved Medmarc, holding that the money transfer did not fall under the umbrella of professional...
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