Dist. Ct. did not err in granting defendant-insurance company’s motion for summary judgment in action to determine whether defendant’s professional liability policy required defendant to indemnify plaintiff-law firm in underlying action by members of successful class action alleging that plaintiff (class counsel) breached fiduciary duty with class members by outsourcing lawsuit to third-party law firm to collect on class action judgment instead of pursuing such collection efforts by itself pursuant to contingency agreement plaintiff had with class members. Exclusion in policy pertaining to “any claim for legal fees owed to” plaintiff applied so as to deny coverage in underlying lawsuit, where: (1) basis of underlying lawsuit by class members against plaintiff was for legal fees that plaintiff had collected (as consultant to third-party law firm); and (2) arbitrator’s award in class members’ favor against plaintiff actually adjusted legal fees recovered by plaintiff in successful class action.
Federal 7th Circuit Court
Civil Court
Insurance