In recent legal developments, a unit of Liberty Mutual Insurance Co. has been instructed to partake in a lawsuit by a Maryland attorney. The lawsuit involves a request for payment coverage of the attorney’s legal defense costs against allegations of negligent misrepresentation made by Johns Hopkins Health System Corp.
This ongoing struggle dates back to the attorney’s previous association with the law firm Shulman, Rogers, Gandal, Pordy & Ecker, P.A.
In the underlying issue, attorney Kimberly D. Reed has alleged breach of contract by the insurer. Her contention rests on her belief that her former law firm’s professional liability policy with Ironshore Specialty Insurance Co. should provide her with coverage against the allegations made by Johns Hopkins Health System Corp.
The US District Court for the District of Maryland presided by Judge Deborah K. Chasanow affirmed this view in a recent Monday opinion. According to the judgment, the insurance dispute’s pivotal point revolves around whether the accusations of misconduct against Reed transpired before she departed from her previous law firm.
Despite the insurer’s motion to dismiss the case, the federal court has denied the request. This means that Liberty Mutual Insurance Co.’s unit must prepare to face the ensuing legal battles in this contentious insurance dispute.