Pa. Firm Without Legal Existence Loses Standing in Malpractice Coverage Fight

That was a fatal problem. The court concluded that D’Angelo & Eurell—at least as styled—was not a true legal entity and could not sue. The only ones who technically had standing were the individual lawyers, David D’Angelo and his late brother George D’Angelo. But their case fell apart anyway because of the way the policy was written. Judge Murphy wrote: “Plaintiffs failed to adduce any evidence that Markley’s malpractice claim against George D’Angelo was not related to misappropriation or conversion.” That meant the insurer could rely on its exclusion for claims tied to conversion or misappropriation of funds. 

The backdrop is a 2013 malpractice suit brought by former client Lisa Markley in Dauphin County. She accused the D’Angelos of “wrongful acts,” which eventually led to a jury finding George D’Angelo liable for breach of professional duty, breach of fiduciary duty, conversion, and breach of contract. The jury awarded Markley $600,000. George D’Angelo died before trial, but the liability carried forward.