Carolina Casualty Insurance v. L.M. Ross Law Group, LLP

Carolina Casualty Insurance Company (Carolina Casualty) issued a legal malpractice policy to the L.M. Ross Law Group, LLP, a two-person law firm whose sole equity partner is Leonard M. Ross. Following the settlement of a legal malpractice action filed by Diversified Entertainment Co. (DEC) against Ross Law Group, Carolina Casualty sought to recover from Ross Law Group the $175,000 it had paid to settle the DEC action; and Ross Law Group cross-claimed to recover from Carolina Casualty the $75,000 it had contributed to the settlement. The trial court granted Carolina Casualty’s motion for summary judgment and denied Ross Law Group’s motion, finding several exclusions to coverage under the policy applied. Ross Law Group appeals. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

1. The Insurance Policy

Carolina Casualty issued a lawyers’ professional liability policy to Ross Law Group for the policy period September 24, 2004 to September 24, 2005. The insuring agreement provided that Carolina Casualty would pay on behalf of the insured, defined as the named insured (Ross Law Group), as well as any partner or employee of the named insured while acting within the scope of his or…