KPKB Defeats Major Insurer, Wins Creditors Substantial Settlement

KPKB Defeats Major Insurer, Wins Creditors Substantial Settlement

MIAMI-DADE COUNTY—Applying detailed law governing insurers, attorneys for the Miami-based firm KPKB won partial enforcement of two $10 million insurance polices for the Trustee of Total Health Care —and a multi-million dollar settlement for its creditors.

     The insurers had contended that the professional liability policies should be voided due to numerous material misrepresentations made by Total Health Care’s officers and directors, some of whom faced criminal charges, in a scheme to defraud creditors.

     But KPKB attorneys successfully argued in court that the insurer had a suspicion of fraud at the time of the policies’ renewal but had failed to conduct an investigation, and thus, under law, should not now be able to cancel them.