Jonathan Meer (Partner-New York) is quoted in “4^th Circ. Atty Fraud Ruling Limits Criminal Defense Coverage,” appearing in the February 9, 2024, issue of Law360 Insurance Authority. The article reports on the U.S. Court of Appeals for the Fourth Circuit decision in Schulman v. Axis Surplus Insurance Co. Inc. et al.,  affirming the district court’s decision granting summary judgment to the defendant insurance companies. The case involved a Maryland attorney who sued after being denied liability coverage for defense costs in a criminal case against him alleging fraud and money laundering. The article explores the panel’s reasons for denying coverage and the basis upon which the Fourth Circuit declined to revisit the panel’s decision or overturn the lower court. Jonathan and other experts for insurers and policyholders weigh in regarding the decision’s ramifications in Maryland while acknowledging that the arguments are open for interpretation based on policy language and laws differing from state to state.

The article posits that “the panel’s decision reinforces the professional liability policy wall between civil and criminal defense costs,” but it also entertains the limited impact of the decision. Jonathan expresses, “It’s important to note that insurance policies for lawyers and in general on the professional line have evolved, and the language that some parts of the decision focus on is not necessarily what’s in some current policies today.” He adds that “current policies clarify many of the issues raised in the years-old policy in Schulman’s case, such as specifically addressing if a subpoena or criminal proceeding can constitute a claim.”

Read the Article.