Fee dispute not covered under professional liability policy
After a large judgment was entered on behalf of their client, the law firm split up, resulting in a fee dispute between the lawyers. When one of the lawyers sought a defense from his professional liability insurer, it filed a declaratory judgment action, claiming that there was no coverage for fee disputes. The trial court agreed, and the Court of Civil Appeals affirmed.
The Court of Civil Appeals cites from the trial court's ruling as follows:
The language of the OAMIC policy is clear and unambiguous in excluding from coverage the following:
This policy does not apply:
a. To any claim arising out of any dishonest, fraudulent, criminal, malicious or knowingly wrongful act or omission or deliberate misrepresentation committed by, at the direction of, or with the knowledge of any insured.
b. To any claim arising out of the division of fees or fee [apportionment] between an insured and any other lawyer or lawyers.
. . . .
All of the allegations . . . arise from the fee dispute . . . . and as such, are excluded from coverage under the policy.
Oklahoma Attorneys Mutual Insurance Co. v. Capron, 2011 OK CIV APP 46
