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Insurance — accounting malpractice — duty to defend

By: WISCONSIN LAW JOURNAL STAFF//February 26, 2013//

Insurance — accounting malpractice — duty to defend

By: WISCONSIN LAW JOURNAL STAFF//February 26, 2013//

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Wisconsin Court of Appeals

Civil

Insurance — accounting malpractice — duty to defend

Jeffrey Kraft sued his former accountant, Jeannie Thompson, and her firm, Jeannie Thompson Accounting, L.L.C. (collectively, Thompson) for malpractice. After Kraft obtained a judgment against Thompson, Thompson assigned her claims against her errors and omissions insurer, Twin City Fire Insurance Company, to Kraft. The circuit court subsequently granted Kraft summary judgment against Twin City, concluding that: (1) Twin City had a duty to defend Thompson; and (2) Twin City breached its duty to defend when it unilaterally determined its policy did not provide coverage and withdrew its defense of Thompson without first seeking a judicial resolution of the coverage issue. Twin City appeals, arguing it did not have a duty to defend Thompson and, even if it did, it did not breach that duty. We reject Twin City’s arguments and affirm. This opinion will not be published.

2012AP1601 Kraft v. Thompson, et al.

Dist III, Pierce County, Boles, J., Per Curiam

Attorneys: For Appellant: O’Brien, Timothy J., New Richmond; Meyer, William E., Jr., Chicago, IL; MacDonald, Ann H., Chicago, IL; For Respondent: Biegert, Matthew A., New Richmond

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