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EXECUTIVE RISK v. PEPPER

56 A.D.3d 196 (2008)

865 N.Y.S.2d 25

EXECUTIVE RISK INDEMNITY INC., Respondent, v. PEPPER HAMILTON LLP et al., Appellants, and WESTPORT INSURANCE CORPORATION, Respondent-Appellant. PEPPER HAMILTON LLP et al., Third-Party Plaintiffs-Appellants, v. CONTINENTAL CASUALTY COMPANY et al., Third-Party Defendants-Respondents. v. PEPPER HAMILTON LLP, ET AL., Third-Party Plaintiffs-Appellants, CONTINENTAL CASUALTY COMPANY, ET AL., Third-Party Defendants-Respondents.

Appellate Division of the Supreme Court of the State of New York, First Department.

September 23, 2008.

Attorney(s) appearing for the Case

Cahill Gordon & Reindel LLP, New York City (Charles A. Gilman of counsel), and Dickstein Shapiro LLP, New York City (Randy Paar, Edward Tessler, Joseph D. Jean and Jesse P. Levine of counsel), for Pepper Hamilton LLP and another, appellants.

Garbarini & Scher, P.C., New York City (William D. Buckley and Gregg D. Weinstock of counsel), for Westport Insurance Corporation, respondent-appellant.

Kornstein Veisz Wexler & Pollard, LLP, New York City (William B. Pollard, III, Howard S. Veisz, Catherine M. Irwin and Amy C. Gross of counsel), for Executive Risk Indemnity Inc., respondent.

Cozen O'Connor, New York City (Kevin M. Mattessich and Sandra Schultz Newman of counsel), for Continental Casualty Company, respondent.

Edwards Angell Palmer & Dodge LLP, New York City (Ira G. Greenberg, John F. McCarrick, Samuel B. Mayer and Scott H. Casher of counsel), for Twin City Fire Insurance Company, respondent.

CATTERSON, MCGUIRE and ACOSTA, JJ., concur.

OPINION OF THE COURT

SAXE, J.

The law firm Pepper Hamilton and one of its members, W. Roderick Gagné, were deprived of millions of dollars in professional liability insurance coverage purchased by the firm, by the order of the motion court declaring that the three excess insurance carriers have no obligation to indemnify the firm. The court reasoned that because the law firm knew of misconduct on the part of its client, and of the likelihood that claims...

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