Insurer Must Face NJ Coverage Suit Over Malpractice Claims

By Bill Wichert (May 17, 2022, 2:15 PM EDT) -- A New Jersey state appeals court Tuesday revived a lawsuit alleging Colony Insurance Co. improperly refused to cover a legal malpractice action against a now-deceased attorney, finding that the state's direct action statute provided a path for the lawyer's onetime client to pursue the coverage claims.

The appellate panel upended Superior Court Judge Ronald Susswein's rulings tossing pro se plaintiff Steven D'Agostino's claims against Colony Insurance, insurance brokerage Poulton & Associates and its president, Blake Poulton, over Colony's denial of attorney Laurence Hecker's request for coverage of D'Agostino's malpractice suit.

That case led to a more than $300,000 judgment that D'Agostino...

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