Bay Cities Paving & Grading, Inc. v. Lawyers' Mutual Insurance

Opinion

BAXTER, J.

A general contractor was owed money for its work on a construction project. The attorney who had been representing the contractor in connection with the project recorded a mechanic’s lien but thereafter failed to serve a stop notice on the project’s construction lenders and failed to file a complaint to foreclose the mechanic’s lien. As a result of the attorney’s omissions, the contractor was unable to collect the amount it was owed.

The contractor then commenced this action against its attorney. The attorney’s professional liability insurance policy contains a provision…