Insurer Sues Ill. Law Firm Over $2M Deal In Fraud Suit

By Sindhu Sundar (November 14, 2011, 9:42 PM EST) -- American Zurich Insurance Co. on Friday sued four Indiana coal mining companies and Illinois law firm Bryce Downey & Lenkov LLC for agreeing to a $1.8 million settlement without the insurer's consent in an underlying suit over attorney deceit claims.

In its complaint filed in Illinois state court, American Zurich claims Bryce Downey breached the cooperation clause of its professional liability policy with the insurer by accepting the settlement agreement with mining companies Hazelton Mining LLC, Bronco Hazelton Co., Hazelton Wash Plant LLC and White River Coal Inc. in an underlying suit stemming from the law firm's representation of three of...

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