Ethics Breach Means Law Firm Disgorges Fees

You have to love it. An insurance defense law firm has been ordered to give up millions of dollars in fees that were paid to it. The problem? The firm assisted one client to set up a competing business. Of course, that was against the interests of another client.

But to make matters worse, the law firm breached its duty to an exiting client by "participating in a scheme to transfer policyholders to another insurer."

All in all, the law firm had to forfeit all the legal fees that it received from the original client, placed at $3.4 million.

I cannot help but wonder what partner gave his/her OK for the above activities!