Negligence/Breach of Contract and Fiduciary Duty
The insured law firm with primary practice areas of municipal law and commercial litigation defended clients against allegations of embezzlement of family funds. The case was settled when the parties agreed to sell the family residence at fair market value. The former clients then filed suit against the insured alleging negligence, breach of contract, breach of fiduciary duty, intentional infliction of emotional distress, misrepresentation, statutory violations and constructive fraud. The plaintiffs claimed the property had been sold out from under them and demanded several hundred thousand dollars for the increased value of the property due to a rise in the real estate market. After the judge ruled on the parties’ motions in limine prior to jury selection, the plaintiffs non-suited their case. Recently, the plaintiffs filed an appeal. Defense costs have totaled $200,000 to date.