Lawyers Insurance

Sedgwick LLP Sued by Lloyds of London for Malpractice

Sedgwick LLP has been sued by Lloyds of London over their handling of a fraud defense for Milberg LLP.

The issues at hand are over how a claim against Milberg for fraud was handled. Lloyds was notified as early as 2002 that grand jury indictments had been issued against Milberg but did not believe that was enough to trigger coverage under their policy. Using Sedgwick as their representative, Llloyds agreed to pay a portion of Milberg’s expenses in a interim funding agreement. However, Lloyds is alleging that Sedgwick committed malpractice when they did not include a tolling clause in the agreement.

When Lloyds attempted to resind their policy in 2008 the statute of limitations had passed and they were barred from doing so. Their case against Sedgwick is pending.

Contact ProtectLawyers.com to discuss your policy wording and how to better protect yourself against claim denials and policy rescissions.

 

 

 

 

 

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