Carrier May Pursue Legal Malpractice Claim on Behalf of Insured
When a law firm defending an insured in an auto accident case failed to timely respond to requests for admissions causing the case to go south for the insured, the insurer sued the attorney for legal malpractice. The policyholders had assigned their rights to the legal malpractice action to their insurer after the case settled for $900,000. Lacking binding precedent, the federal court certified the question to the Supreme Court of South Carolina. The state high court held an insurer may bring a direct malpractice action against counsel hired to represent its insured. The court did not weigh in on whether the insured’s assignment of its professional negligence claims was proper.