Reinsurer of a Reinsurer May Maintain a Legal Malpractice Claim Against Attorney Representing An Insured
On February 15, 2024, an appeals court covering a New York County case issued an opinion of first impression concerning standing to sue for legal malpractice. The case involved a retrocessional insurer (reinsurer of a reinsurer) seeking to bring a legal malpractice action against the attorneys representing an insured in a personal injury lawsuit. The court held that the plaintiff reinsurer had paid out on the settlement on behalf of the insured, has standing to sue for legal malpractice under the theory of equitable subrogation. It was noted in the decision that the court had long "recognized that an excess insurer may seek relief against an insured's attorney for malpractice as equitable subrogee of the insured. However, we have not had an opportunity to address whether a reinsurer, or retrocessionaire, may assert a legal malpractice claim on behalf of the insured." Century Prop. & Cas. Corp. v McManus & Richter, 2024 N.Y. Slip Op. 00799
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