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Florida Supreme Says Insurer Can Pursue Malpractice Claim Against Defense Law Firm

Attorneys who are hired by insurance carriers to defend policyholders from lawsuits have a duty to represent the insured, but the insurer is paying their fees.

Obviously, the insurer has a financial interest in the outcome of the litigation. The insurer has to pay any settlement or award of damages. But if something goes wrong, does the insurer have a right to pursue a malpractice claim against the attorney?

The Florida Supreme Court on Thursday ruled that if the insurance contract gives the insurer subrogation rights, yes, it does.

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