Fourth Circuit: Search Warrant Does Not Constitute A "Claim"

The United States Court of Appeals for the Fourth Circuit, applying Maryland law, has affirmed a ruling that no coverage was available for costs incurred in connection with a government investigation, finding that the government's application for a search warrant, the search warrant itself, and letters informing the insured lawyer of nonwaivable conflicts of interest did not constitute a "Claim" under the policy at issue. Brown Goldstein Levy LLP v. Federal Ins. Co., 2023 WL 3513693 (4th Cir. May 18, 2023).

In 2014, the U.S. government began investigating an attorney in connection with a federal racketeering investigation. The attorney engaged the insured law firm to represent him in the investigation. Later, the government informed one of the law firm's partners that his conduct was also within the scope of the investigation, and that there were nonwaivable conflicts with respect to his representation of the accused. In 2019, the government obtained and executed a