Edwards Wildman Palmer LLP, a 625-lawyer firm was in the news recently for opening an office in Istanbul. However, this time the firm with 14 offices across three continents seems to be in the news for a wrong doing. At issue is a malpractice claim filed against Edwards Wildman by its former client National Union Fire Insurance Company of Pittsburgh, PA.
The insurance company has alleged that Edwards Wildman did not inform them timely of a conflict of interests in a matter for which the firm represented the insurer. As a result the insurance company has filed a lawsuit seeking $10 million in damages, costs and attorney fees; $30 million under a law in New York that trebles damages to punish lawyers proved to have engaged in collusion or deceit; and $3 million for return of legal fees paid to Edwards Wildman in the matter at issue.
In the instant case Edwards Wildman was asked by the National Union Fire Insurance Co. to determine whether it should pay a claim of its policyholder - the Modern Continental Construction Co. However, the law firm also represented The Travelers Cos. Inc., which had provided performance bonds regarding the work of Modern Continental Construction in the project where the liability arose. This position of the law firm, not known to National Union Fire Insurance, prevented Edwards Wildman from representing Modern Continental Construction Co. in the matter. The conflict of interest was not disclosed before two years had passed from the time when the insurance claims were made.
The plaintiffs have alleged that Edwards Wildman had simple removed itself by an emergency motion from representing Modern Continental Construction Co. and as a result National Union Fire Insurance Co. had to incur extra expenses amounting to millions to bring in another law firm. In regard to this, a spokeswoman of Edwards Wildman has said the allegations have no merit and the law firm would vigorously defend itself.
However, the malpractice suit mentions that despite "recognition of the existence of a conflict in February 2010," the law firm did not inform National Union of the conflict until the summer of 2012, and that Edwards Wildman did not "ever seek or obtain a written waiver in writing from National Union."
