N.Y. Judge Orders Lawyers To Pay $450,000 For Client's Mold, Water Damage

NEW YORK - A New York judge on Feb. 28 ordered a law firm to reimburse its client nearly $450,000 after it failed to timely file a lawsuit against the client's insurer for unpaid mold and water property damage claims. 3 Cottage Place v. Cohen, Tauber, Spievack, No. 118036/2005 (N.Y. Sup. Ct., N.Y. Co.).

Justice Walter B. Tolub of the New York County Supreme Court ruled that a letter in which the firm calculated its potential liability for the untimely coverage action was an admission of the sum the client would have recovered had the insurance action been timely filed.