Atty Loses Malpractice Coverage For Fraud Suit

Law360, New York (November 5, 2012, 7:12 PM EST) -- An Illinois appeals court ruled Thursday that the Illinois State Bar Association Mutual Insurance Co. need not defend a lawyer against a fellow attorney's claim that he committed fraud to score a $900,000 default judgment in a personal injury suit.

Agreeing with the lower court, the appeals court said the professional liability policy that ISBA Mutual issued to attorney Timothy J. Cavenagh only required the insurer to defend against claims arising from a policyholder's negligent acts. The underlying lawsuit that attorney Richard Bogusz brought against Cavehagh...
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