Lampert v. Evanston Insurance Company
September 12, 2015
Lampert v. Evanston Insurance Company
Federal court lawsuit for insurance bad faith. Plaintiff was an attorney who obtained an errors and omissions policy with the defendant and later sought a defense and indemnity against a claim by the Lutheran Synod Foundation for the alleged conversion of $1.9 million from an estate which the insured was hired to administer. Coverage counsel hired by the defendant discovered that the insured had failed to disclose a State Bar disciplinary proceeding in his insurance application. Consequently, the request for a defense and indemnity was denied. Plaintiff then sued, seeking recovery of the $1.5 million judgment against him plus interest (a total of $2.3 million). Defendant filed a cross-complaint seeking rescission of the insurance policy.
Demand | $2.3 million, reduced to $1.8 million at the beginning of trial. |
Offer | $50,000 with an indication of more if plaintiff would reduce its demand. |
Verdict | DEFENSE. The court also granted rescission of the cross-complaint based upon material misrepresentations in the insurance application. |
Insurer | Evanston |
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