An Allstate subsidiary has initiated a legal malpractice lawsuit against Lewis Brisbois Bisgaard & Smith and its managing partner, Renee J. Mortimer. The legal filing, made in the 10th Judicial District Court for Johnson County in Kansas, alleges that the law firm and Mortimer failed to secure a $25,000 settlement in a motor vehicle collision lawsuit. Instead, years of litigation ensued, culminating in a $5 million judgment against Safe Auto Insurance Co.’s insured driver, Jaime Valdez. The judgment was significantly over the policy limit of $25,000 that Valdez held.
The complaint asserts that Safe Auto had instructed Lewis Brisbois to accept a settlement offer well within Valdez’s policy limit, which could have mitigated further financial liabilities. However, the firm is accused of taking no action to accept this offer, and instead, allegedly encouraged an interplead action. This inaction is claimed to have resulted in Valdez and Safe Auto facing a multimillion-dollar judgment and the firm’s breach of fiduciary duty and legal malpractice. Furthermore, the lawsuit insists that Safe Auto is entitled to indemnity and/or contribution for the excess settlement it paid. Representatives from Lewis Brisbois have yet to comment on the filing.