Insurance Coverage / Professional Liability

Insurance Coverage / Professional Liability

Our client is a mortgage broker. They used an escrow company for some transactions. One of the principals of the escrow company (unrelated to our client) absconded with a substantial amount of trust funds. A bank, now under FDIC liquidation, sued our client alleging that our client was responsible for the loss of the trust funds. The matter was mediated and we were able to persuade the liability insurer, for our client, to pay the entire settlement.