ALPS Property & Casualty Company (ALPS) rescinded McLean & McLean (M&M), David McLean, and Michael McLean’s insurance policy after receiving notification of David McLean’s theft of client money. ALPS rescinded the coverage based on the misrepresentations that David McClean made in the annual insurance renewal application. The rescission of the contract precluded coverage for third party claimants, including Joseph and Marilyn Micheletti (Michelettis), who allege David McLean negligently missed a filing deadline for their personal injury lawsuit resulting in professional malpractice. The district court granted summary judgment for ALPS, finding that the policy was void ab initio, resulting in a denial of coverage for M&M, Michael McLean, and the Michelettis.
Emily Gutierrez Caton, Oral Argument Preview, ALPS Property & Casualty Ins. Co. v. McLean & McLean, PLLP: After Rescission, a Remedy for Third-Party Claimants and Innocent Insureds?, 78 Mont. L. Rev. Online 119, https://scholarship.law.umt.edu/mlr_online/vol78/iss1/12.