No Coverage In NY For 'Hybrid Role' Malpractice Claims

Law360, New York (June 3, 2015, 10:16 AM EDT) -- In April 2015, the Appellate Division of the New York Supreme Court ruled that a business enterprise exclusion bars coverage for a legal malpractice claim that is based partly on the insured attorney's law practice and partly on the attorney's activities on behalf of a business enterprise he controlled. The ruling in Lee & Amtzis LLP v. Am. Guarantee & Liab. Ins. Co.[1] confirms that courts will enforce business enterprise exclusions in accordance with their plain and broad meaning to bar coverage for claims arising out of an attorney's business pursuits — even where the claim also alleges legal malpractice....

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