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June 2011 Archives

June 19, 2011

Beware Requests to Collect Debts from Foreigners

Did you ever receive an email asking for your assistance to collect a debt for some foreign company? If you do decide to help the person seeking your assistance you must be very careful to the terms that you agree to or you may end up owing money to your bank and you may or may not have liability insurance to protect your losses. Even if you do not have liability insurance to cover your debt to the bank your professional liability may have to defend the action. In part this is because the duty to defend by a carrier is greater that the duty to indemnify.

The case of Lombardi, Walsh, Wakeman, Harrison, Amodeo & Davenport, P.C. v. American Guarantee And Liability Insurance Company stands as a cautionary tale to be careful when seeking to help a client overseas with debt collection or any other legal issues involving currency matters. One thing to be sure to do is make sure that you do not have to pay out any monies until after your bank has finally collected on the check that you give them rather than when the check has "cleared". It was this difference in time that got the law firm into trouble leading to this litigation.

About June 2011

This page contains all entries posted to Torts, Insurance and Compensation Law Weblog in June 2011. They are listed from oldest to newest.

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