Law Firm On Hook for Overreaching on Litigation Expenses
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Law Firm On Hook for Overreaching on Litigation Expenses

A law firm obtained substantial settlements on behalf of plaintiffs against breast implant manufacturers, for which it garnered $263.4 million in fees. The clients sued to recover litigation expenses improperly charged by the firm. An arbitration panel awarded the plaintiffs over $41 million. The law firm sued its insurer to recover the amount of the arbitration award under its excess professional liability insurance policy. The Fifth Circuit held the award constituted a return of fees improperly charged as litigation expenses that were not covered Losses. The claim also fell within scope of policy exclusion for any loss arising out of “gaining of any profit or advantage to which an Insured was not legally entitled.”

John M OQuinn PC v Lexington Insurance Co