STORY FROM: Reinsurance & Arbitration

Law Firm Immune from Insurer’s Negligent Misrepresentation Claims, 5th Cir. Rules

NEW ORLEANS — A law firm is immune from claims that it negligently misrepresented the facts of a lawsuit to an insurer while representing its policyholder because the firm was acting within the scope of its representation of a client, a federal appeals court has ruled.

In a Jan. 2 opinion, the 5th Circuit U.S. Court of Appeals concluded that all of Schiff Hardin LLP’s alleged misrepresentations and omissions were related to its representation of the insurer’s policyholder in a product liability case. As such, the attorney immunity defense applies, the court held.

In 2015, Nicole and Cameron Hinson sued ...

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