A federal judge in Illinois sided with a boutique law firm in Chicago this week in a dispute over whether an underlying legal-malpractice suit fell under its insurer’s definitions of “legal services” and “damages.”
In a Monday opinion, U.S. District Judge LaShonda A. Hunt for the Northern District of Illinois granted partial summary judgment to the Chicago law firm, Esbrook, on breach of contract and declaratory judgment claims against Wesco Insurance Co. Esbrook sued Wesco after the insurance company failed to defend or indemnify the firm in two underlying malpractice actions, which accused the firm of withholding settlement funds. Wesco argued coverage wasn’t triggered because the relief the plaintiffs in the underlying claims sought doesn’t constitute “damages” or arise out of the performance of “legal services,” as defined by the policy.