Following are just a few examples of the damage that a single lawyers professional liability lawsuit can cause.

Malicious Prosecution

The insured law firm filed an 11-count complaint on behalf of its client. After dismissal of the action, the firm found itself serving as a defendant in a malicious prosecution action put forth by the client. Recognizing the plaintiff could not succeed on all points of the malicious prosecution claim, the law firm brought a defense against the case. Unfortunately, the wealthy plaintiff decided vengeance outweighed economics and took the case through the trial and appellate courts. The exoneration of the law firm came with a hefty price tag. Monitor paid defense fees exceeding $1 million.

Securities Fraud

The insured, a California attorney, was retained by a successful businessman to do a variety of transactional work for his corporations and other business entities. Some of the business entities were involved in soliciting investments and raising capital from the general public, although the attorney was not directly involved in these activities. The insured later learned that his client was under investigation by the SEC for Securities Fraud and for engaging in a “ponzi” scheme. The business entities filed for bankruptcy protection. The receiver for the bankrupt entities brought an action against the insured’s client and the insured claiming damages of $55 million. Monitor paid more than $750,000 to resolve this lawsuit.

Standard of Care Violation

A small law firm in San Diego, California was hit with a cross-claim brought by the insured’s expert witness. This witness had been sued by the insured’s former client for adversely impacting the underlying wrongful death suit. The claimant alleged the witness gave testimony that fell below the standard of care during his expert witness deposition. Monitor covered the more than $800,000 defense costs incurred.