No Standing for Legal Malpractice Claim
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No Standing for Legal Malpractice Claim

After the underlying litigation ended, an insurer filed a legal malpractice action against the law firm it hired to defend the insured alleging its negligence caused the insurer to pay a settlement it should not have had to pay. The law firm successfully challenged the insurer’s standing; the court reasoned the insurer was not in privity with the law firm. The Florida Court of Appeals agreed and further found the insurer's suit did not qualify under the exceptions to the privity rule. Although the insurer alleged it paid the law firm’s fees, was an intended third-party beneficiary of the relationship between the attorney and the insured, and privity of contract with the attorney was unnecessary, the court rejected these assertions and refused to apply the exceptions. 

Arch Insurance Company v Kubicki Draper LLP