Stein

This case involves an attempt by plaintiffs Michael D. Stein and Michael Stein, APC (collectively Stein), and James Warner to recover from their legal malpractice insurance carrier, defendant International Insurance Company, damages attributable to a malpractice suit which was never filed. Plaintiffs assert they reasonably incurred expenses investigating and defending against a potential claim notwithstanding that a lawsuit on that claim was never filed.

We reject International’s principal contention that it has no duty to reimburse an insured for expenses incurred in the investigation of a claim simply because a lawsuit has not been filed. We nonetheless conclude that the relevant insurance policy, which provides that an insured may incur reimbursable “claims expenses” with the written consent of the insurer, requires at a minimum that the insured notify the insurer what investigation and defense expenses the insured believes are reasonably necessary. Because such a specific request was never made in this case, we hold the trial court properly granted summary judgment in favor of International.

Factual and Procedural Background

Stein purchased a standard claims-made…