Less than three months after a federal judge ruled West Chester-based Lamb McErlane was not entitled to coverage by Allied World Insurance Co. for a $557,001 professional liability claim arising out of an estate case, the law firm and its insurer are embroiled in a new malpractice coverage dispute involving a separate underlying case.
On May 9, Allied World filed suit in the U.S. District Court for the Eastern District of Pennsylvania, seeking a declaratory judgment that it is not required to defend or indemnify Lamb McErlane in a malpractice action arising out of a York County construction defect lawsuit that was ultimately tossed out on procedural grounds.
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