Question is with respect to 'Lawyers professional Liability'. We have a customized policy - specimen attached.
Our doubts arose with this case, where another lawyer, not an insured's client, is threatening our insured, (quoted - "you've unilaterally breached the contract agreed during mediation and/or settlement conference. Your actions have caused emotional damage to claimants; with disparate treatment and imposing additional conditions constitutes discriminatory treatment and prejudicial delay in the disbursement of funds... We reserve our rights to be compensated for damages".
Facts: Our insured's client is the defendant. The other lawyer is with the plaintiff.
We believe that lawyers professional liability respond to a wrongful act during rendition of services to a client. But our policy didn't define client. Instead, definition of wrongful act states: "any act, error, omission, circumstance, PERSONAL INJURY or breach of duty in the rendition of legal services for others in the INSURED'S capacity as a lawyer"
CLIENT nor OTHERS are define in the policy. And OTHERS is so broad.
Based on the above, we believe that, this claim (POTENTIAL CLAIM) is between colleagues, one claiming that because of the wrongdoing of the other, plaintiff's claim is being intentionally delayed and he reserves the rights to sue for damages if the claim is not promptly resolved - will have to be registered as a Potential Claim.
Puerto Rico Subscriber
We are in agreement with your analysis that the statements made against the insured attorney could give rise to a claim under the policy. The allegations made, if proven, could be considered a wrongful act under the terms of the policy. Therefore, the circumstances give rise to a potential claim under the policy.