NJ.Com reports the following case: Liberty Surplus Insurance Co., Inc. v. Nowell Amoroso, P.A.
“In 1993, owners of the nightclub Scandals claimed it had failed because of harassment by East Orange police. The law firm Nowell Amoroso won a $400,000 verdict on behalf of the nightclub but it was thrown out on appeal because the lawsuit was filed after the statute of limitations had run.
A month later, Nowell Amoroso took out legal malpractice insurance with Liberty Surplus. In June 2003 – 11 months after that policy went into effect – it was sued for legal malpractice by the owners of the nightclub. Liberty Surplus said it did not have to cover the claim because the law firm should have seen it coming when it applied for insurance. An appeals court agreed, and the law firm appealed to the high court.”
Contributed by Robert Schwaneberg