977 F.2d 734 (2nd Cir. 1992), 1646, Continental Cas. Co. v. Coastal Sav. Bank

Docket Nº:1646, Docket 92-7244.
Citation:977 F.2d 734
Party Name:CONTINENTAL CASUALTY COMPANY, Plaintiff-Appellant, v. COASTAL SAVINGS BANK; Gary Cockrell; Susan Cockrell; Connecticut Savings Bank; Connecticut Valley Bank; Electric Boat Community Federal Credit Union; Farmers & Mechanics Bank; Joseph Griffith; Linda Hatch; Security Pacific National Bank; Security Pacific National Trust Company; Thomas Jefferson
Case Date:October 23, 1992
Court:United States Courts of Appeals, Court of Appeals for the Second Circuit
 
FREE EXCERPT

Page 734

977 F.2d 734 (2nd Cir. 1992)

CONTINENTAL CASUALTY COMPANY, Plaintiff-Appellant,

v.

COASTAL SAVINGS BANK; Gary Cockrell; Susan Cockrell;

Connecticut Savings Bank; Connecticut Valley Bank;

Electric Boat Community Federal Credit Union; Farmers &

Mechanics Bank; Joseph Griffith; Linda Hatch; Security

Pacific National Bank; Security Pacific National Trust

Company; Thomas Jefferson Limited Partnership; Gallup Hill

Associates; Greentree Associates; Connecticut National

Bank; Jerome Zrenda, Partner in Gallup Hill Associates;

Jerome Zrenda, Partner in Greentree Associates, Defendants,

Bank of Southeastern Connecticut; Denise Bevza;

Connecticut Bank & Trust Company, N.A.; Chelsea Groton;

Chicago Title Insurance Company; Dime Savings Bank of

Norwich; Dupont Mortgage Corporation; First Eastern

Mortgage Corporation; First New London Savings & Loan

Association; Darlene Mastrianna; Thomas Mastrianna;

National State Bank of Perth Amboy; New England Savings

Bank; Norwich Savings Society; Robert Renehan; David

Reynolds; Union Trust Company; Fleet Bank of Connecticut;

Zrenda & Hinkle, P.C., Joseph M. Zrenda, Defendants-Appellees.

No. 1646, Docket 92-7244.

United States Court of Appeals, Second Circuit

October 23, 1992

Argued June 8, 1992.

Page 735

Kevin A. Coles, Shelton, Conn. (Cotter, Cotter & Sohon, P.C., of counsel), for plaintiff-appellant Continental Cas. Co.

Penny Q. Seaman, New Haven, Conn. (William J. Egan, Wiggin & Dana, of counsel), for defendant-appellee Chicago Title Ins. Co.

Before: CARDAMONE, WINTER and MAHONEY, Circuit Judges.

WINTER, Circuit Judge:

Continental Casualty Company ("Continental") appeals from Judge Dorsey's dismissal of its complaint. In that complaint, Continental sought a declaratory judgment that it was not bound to indemnify and defend a law firm, Zrenda & Hinkle, P.C., under a Legal Professional Liability Policy for claims made by Chicago Title Insurance Company ("Chicago"). We reverse.

BACKGROUND

Zrenda & Hinkle consisted of attorneys Jerome P. Zrenda, Joseph M. Zrenda, and Denise Bevza. Continental issued a Legal Professional Liability Policy to Zrenda & Hinkle sometime prior to May of 1988. That policy contained the following exclusion:

We will not defend or pay, under this Coverage Part for:

D. Any claim arising out of:

1. a wrongful act in your performance:

a. as an officer, director, or trustee of a:

(1) business enterprise other than as named on the Declarations ... unless such entity is a client of yours and the claim relates solely to such lawyer/client relationship;

2. a wrongful act in your performance of professional services for a business enterprise other than as named on the Declarations which is owned, controlled, managed or operated by you or

Page 736

your spouse, or in which either of you are partner or employee;

Subsequent to the issuance of the policy, Zrenda & Hinkle successfully submitted applications for renewal on three occasions--May 24, 1988, April 10, 1989, and June 11, 1990. The applications contained the following question:

IS ANY LAWYER AWARE OF ANY PROFESSIONAL LIABILITY CLAIM MADE AGAINST HIM IN THE PAST YEAR, OR ANY INCIDENT, ACT OR OMISSION WHICH MIGHT REASONABLY BE EXPECTED TO BE THE BASIS OF A CLAIM OR SUIT, ARISING OUT OF PERFORMANCE OF PROFESSIONAL SERVICES FOR OTHERS?

On...

To continue reading

FREE SIGN UP