Insurer says Attys botched advice in hotel wage action

By Joyce Hanson (March 24, 2022, 9:00 PM EDT) – An insurance company has sued two attorneys and their bankrupt law firm in federal court in California for allegedly giving bad advice about policy coverage of a hotel group fighting an employee’s pay action, claiming the insurer was unfairly required to pay a $4 million settlement.

Philadelphia Indemnity Insurance Co. on Wednesday sued Martin J. O’Leary and Kimberly I. Forrester and the Sedgwick LLP Liquidating Trust of their US bankruptcy court-established bankruptcy law firm, arguing that the insurer owed damages -compensatory interest following the two alleged professional misconduct of the lawyers.

The insurer’s lawsuit stems from…

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