Attorney: Judgment Was Not ‘Collectable’ Under Insolvent Insurer’s CGL Policy

Mealey's (June 28, 2021, 3:17 PM EDT) -- LOS ANGELES — A law firm and its attorney who were sued for professional negligence tell a California appeals court in a May 26 brief that an underlying $3.5 million default judgment against a contractor was not “collectable” under a commercial general liability insurance policy even if the insurer had not gone into receivership, seeking affirmance of a lower court’s ruling in their favor arising from clients’ claims that they would have been able to collect a $2 million judgment against the insurer but for the law firm and attorney’s lack of due diligence in obtaining the default judgment against the contractor....