What is a cumis counsel lawyer?

Cumis Counsel Lawyer

What is cumis counsel?

Sometimes in your practice of real estate (ex. as a property manager, commercial real estate or residential agent, or mortgage loan originator) you will be sued for your role in the transaction.  A plaintiff in a civil lawsuit might sue you for any or more of the following:

1. Fraud
2. Constructive Fraud
3. Breach of Contract
4. Negligence
5. Financial Elder Abuse
6. Misrepresentation
7. Breach of fiduciary duty

These are just some of the common lawsuits (and requests for arbitration) that I see being filed against California real estate brokers and their companies.  When this happens, your errors & omissions insurance policy (ex. CRES or Lloyd’s of London) will normally cover you FOR COVERED CLAIMS ONLY.

For example, in the above scenario, they may cover you ONLY for the Negligence cause of action.  They may issue you a “reservation of rights” letter informing you that they will not cover the fraud, breach of fiduciary duty, or financial elder abuse claim, and they reserve their rights to come back TO YOU AND SEEK INDEMINIFICATION FOR THEIR LOSSES.

Such a letter indicates a potential conflict of interest, and may entitle you to a “cumis counsel lawyer” at the insurance companies expense.

Listen in to this great show with Attorney Steve and Frontline Lisee!