Insurer Can Challenge Deal In Dickstein Malpractice Row

Law360 (December 21, 2020, 6:31 PM EST) -- The Ninth Circuit ruled Friday that excess insurer Scottsdale Insurance Co. can press its argument that it shouldn't have to help fund defunct Dickstein Shapiro LLP's defense of a legal malpractice case because the firm's primary insurers at Lloyd's of London improperly exhausted their limit settling a dispute over a prior malpractice action.

Partially reversing a lower court, a three-judge panel of the appeals court found that Scottsdale is entitled to challenge the decision by Dickstein's primary professional liability carriers — a group of seven underwriters at Lloyd's — to shell out $17.5 million to settle a suit claiming they wrongfully...

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