Judge Remands Errors And Omissions Liability Coverage Suit Over Malpractice Claims

Mealey's (July 8, 2020, 1:08 PM EDT) -- LOS ANGELES — A senior federal judge in California on July 6 held that based on an amended negligence claim against an insurance adjuster in a lawsuit seeking errors and omissions liability coverage for an underlying malpractice claim, complete diversity no longer exists and remand is appropriate, finding, however, that the plaintiffs are not entitled to attorney fees because the adjuster was a sham defendant when the insurer initially removed the lawsuit to federal court (James Cook, et al. v. Arch Insurance Co., et al., No. 20-02612, C.D. Calif., 2020 U.S. Dist. LEXIS 118668)....