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Homeowner loses malpractice appeal tied to Liberty Mutual coverage dispute
A New York appeals court also upheld a $7,740 judgment against the policyholder for unpaid legal fees.
Insurance Business reports that a homeowner who blamed her attorneys for missing a lawsuit deadline lost her legal malpractice appeal linked to a homeowners insurance coverage dispute with Liberty Mutual Insurance Company.
On August 19, 2026, the New York appeals court affirmed the dismissal of the malpractice claim. The court found that even a timely filing would not have changed the outcome, citing the policyholder's failure to comply with policy conditions and a conclusion that she would not have prevailed against Liberty even if the case had been started within the two year deadline.
The same ruling upheld a $7,740 judgment on the law firm’s counterclaim for unpaid legal fees. The firm’s evidence included a retainer agreement, invoices, and the policyholder’s deposition testimony, in which she said she had not paid the outstanding bills.
The appellate court also agreed with the finding that the delay was tied to the client’s own inaction and lack of communication, noting the firm had represented her at her examination under oath and communicated with Liberty about the claim.