Axis Avoids Defending Mortgage Broker In $5M Fraud Suit

Law360, New York (October 2, 2013, 4:04 PM EDT) -- A Texas federal court on Friday freed Axis Surplus Insurance Co. from defending a mortgage broker against a nearly $5 million lawsuit over misappropriated investments, finding that the underlying claim stemmed from services that were not insured by a professional liability policy.

U.S. District Judge A. Joe Fish held that Axis had no defense obligations under a policy it issued to Halo Companies Inc. and Halo Group Inc, because the underlying lawsuit blamed the Halo defendants for the misuse of investors' funds, and the suit did...
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