Indiana Supreme Court Okays Indiana Court of Appeals Decision to Deny Legal Malpractice Claim
In Querry & Harrow v. Transcontinental Ins. Co., 861 N.E.2d 719 (Ind. Ct. App. 2007), the Indiana Court of Appeals denied an excess insurer's claim against the insured's attorneys. In reaching its decision, the Indiana Court of Appeals stated the doctrine of equitable subrogation should not be extended to excess insurers which would allow them to sue the insured's attorneys for legal malpractice. The Indiana Court of Appeals explained that allowing such a claim could jeopardize the attorney's loyalty to his client and maintaining client confidentiality. The Indiana Supreme Court granted transfer of the case.
In a brief opinion, the Indiana Supreme Court affirmed the Indiana Court of Appeals decision and reasoning on this issue. It also affirmed the Indiana Court of Appeals decision on a secondary issue of finding no material issue of fact that the limited communications between the excess insurer and the insured's attorneys did not constitute an attorney/client relationship.
