FLORENCE, S.C. (Legal Newsline) – A South Carolina law firm whose finances spiraled after receiving a bogus check is seeking a court order that requires its insurance company to help with the mess.
The Stevens Law Firm of Loria filed suit in Horry County on March 30 against United States Fire Insurance Company and Crum & Forster. Those defendants removed the case to South Carolina federal court on May 4.
A $180,000 settlement check was given to the Stevens firm’s trust account, and the funds set aside for its client were wired to him. But afterward, the check was found to be counterfeit and dishonored by the issuing bank.
The Stevens firm’s bank seized all funds in its trust account to cover the counterfeit check and started bouncing checks previously issued to or on behalf of other clients, the lawsuit says.
The trust account of $91,000 was totally depleted, the lawsuit says.
Those funds were recovered but the Stevens Firm couldn’t pay the difference on the original $180,000. Synovus Bank sued for $88,000.
The Stevens Firm asked the defendants to indemnify it, but the defendants said there was no coverage for this situation, the lawsuit says.
U.S. District Court for the District of South Carolina case number 4:20-cv-01733.