3rd Circ. Clears Insurers From Covering Follow-Up Actions

Law360, New York (July 31, 2012, 10:58 PM EDT) -- In a precedential ruling Tuesday finding for St. Paul Travelers Insurance Co., the Third Circuit held that an insurer has a duty to cover an insured's expenses for prosecuting counterclaims in an initial legal malpractice lawsuit, but not the expenses incurred in a related, strategic action later brought by the insured.

The appeals court found that while Travelers did owe coverage to attorney Benjamin Post for a malpractice claim brought by his client Mercy Hospital-Wilkes Barre and its affiliates Mercy Healthcare Partners and Catholic Healthcare Partners...
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