Unauthorized Practice of Law

In Louisiana Claims Adjustment Bureau, Inc. v. State Farm Insurance Company (decided June 23), the Second Circuit held that a so-called "third-party adjuster" engaged in the unauthorized practice of law when it negotiated settlements on behalf of persons injured in automobile accidents in exchange for a 25% contingency fee. Thus, State Farm's statements to that effect were true, and hence State Farm could not be held liable for defamation. Nor could State Farm be held liable for tortious interference with contract, because the contracts between LCAB and its "clients" were against public policy and therefore void.

Posted by RPW at July 14, 2004 12:15 PM