Here is a report from Law.Com on an appellate reversal after a trial on a bad faith and legal malpractice case. Plaintiff said that the insurance company should have offered to settle the case within policy limits, and that its defense attorneys committed malpractice. The jury agreed, while the judge did not. Now the appellate court has sided with the jury.
"The Pennsylvania Superior Court has reversed a Philadelphia judge’s decision to toss out a $3 million verdict awarded to a real estate brokerage that sued its insurer and lawyer after it was hit with an $11.4 million verdict in a defamation suit.
In its 24-page opinion in Marie Miller Century 21 Alliance Inc. v. Continental Casualty Co., a unanimous three-judge panel found that Philadelphia Common Pleas Judge Allan L. Tereshko had no basis for overturning the jury’s awards against either the insurer or the lawyer.
In the suit, Marie Miller and her company, Century 21/Marie Miller & Associates, argued that Continental Casualty (also known as CNA) should have settled the defamation case prior to trial, and that news of the verdict had harmed its business.
The plaintiffs also brought a legal malpractice claim against attorney Jonathan D. Herbst and his firm, Margolis Edelstein, claiming that he, too, should have settled the case before Miller was hit with a massive verdict "