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COA: insurer received actual notice from clients

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The insurance company that provided legal professional liability coverage for the attorney who abandoned his practice and went on a crime spree did receive actual notice of the attorney’s clients’ claims against the insurer, the Indiana Court of Appeals ruled today.

The Bar Plan Mutual Insurance Co. intervened in complaints filed by clients of C. Bruce Davidson Jr. for legal malpractice against the attorney. The Bar Plan issued a policy to Davidson effective from March 2003 to March 2004. In November of that year, Davidson abandoned his law practice without notice and went on a multi-state bank robbery crime spree. He was disbarred in 2004 and is now in federal prison.

Bar Plan argued in its motion for summary judgment that the fact Davidson didn’t notify the insurer of the claims or suits, that he failed to assist or cooperate in the investigation of the claims, and that coverage is moot because there could be no recovery in the underlying suits because recovery in such cases is precluded under the policy.

The trial court granted the motion, finding Paint Shuttle, Inc. v. Continental Casualty Co., 733 N.E.2d 513 (Ind. Ct. App. 2000), applied and was dispositive.

The Court of Appeals concluded in Michael Ashby, et al. v. C. Bruce Davidson, Jr., No. 49A04-0910-CV-569, that Paint Shuttle didn’t support the insurer’s arguments.

Bar Plan received actual written notice of the clients’ claims from the clients, not Davidson, so Bar Plan argued under the policy that it didn’t receive written notice within the policy period.

Under the policy, Davidson was supposed to provide written notice, but he was running from the law during the relevant time period, noted Judge James Kirsch, and also unable to receive demands from the clients within that period. Under the facts of the case, notice provided by Davidson was impossible. Also, the insurer did receive “timely” and “true” notice as those terms are set out in Paint Shuttle.

The purpose of the notice provision has more to do with the ability of Bar Plan to investigate and defend claims in a timely manner than with the ability of Bar Plan to deny coverage because actual notice was supplied by the wrong person, wrote Judge Kirsch. As a matter of law, the actual notice Bar Plan received from the clients was proper.

The case was remanded for further proceedings.  
 

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  1. Indianapolis employers harassment among minorities AFRICAN Americans needs to be discussed the metro Indianapolis area is horrible when it comes to harassing African American employees especially in the local healthcare facilities. Racially profiling in the workplace is an major issue. Please make it better because I'm many civil rights leaders would come here and justify that Indiana is a state the WORKS only applies to Caucasian Americans especially in Hamilton county. Indiana targets African Americans in the workplace so when governor pence is trying to convince people to vote for him this would be awesome publicity for the Presidency Elections.

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  5. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

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