Anderson v. Aul

Wisconsin’s notice-prejudice statutes provide that an insured’s failure to furnish timely notice of a claim as required by the terms of a liability policy will not bar coverage unless timely notice was reasonably possible and the insurer was prejudiced by the delay. Plaintiffs sued their former attorney (“Attorney”) for legal malpractice. Attorney’s professional liability insurer ("Insurer") intervened in the lawsuit and sought summary judgment declaring that the insurance policy it issued to Attorney did not cover Plaintiffs’ suit. At issue in this case was whether the notice-prejudice statutes superseded Insurer’s policy requirement that claims be reported during the policy period. Plaintiffs’ claim against Attorney was made during the policy period, but Attorney did not report the claim during the policy period. The circuit court granted the Insurer’s motion for summary judgment, but the court of appeals reversed. The Supreme Court reversed, holding that the notice-prejudice statutes did not supersede Insurer’s policy requirement that claims be reported within the policy period. View "Anderson v. Aul" on Justia Law