Law Firm Beats Insurer at 2nd Cir. on Legal Costs Over Ring Sale

An insurer set to be acquired by Sompo Holdings Inc. is on the hook for legal costs incurred by a now-dissolved New York law firm accused of interfering with a creditor’s collection of a judgment by organizing the sale of a debtor client’s ring.

The underlying state court suit against Marcus & Cinelli LLP didn’t allege “misappropriation” excluded by a professional liability policy issued by Aspen American Insurance Co., the US Court of Appeals for the Second Circuit said in a split opinion Thursday. The appeals panel reversed a lower court’s dismissal of the law firm’s coverage claims against the ...