Disbarred Lawyer Has no Standing to Take a Bad Faith Assignment

Read the full article at https://www.linkedin.com/pulse/assignment-bad-faith-suit-violation-court-orders-zalma-esq-cfe and at https://zalma.com/blog plus more than 3550 posts.

Lawyers who have been disbarred are quite creative. A lawyer of my acquaintance who was disbarred after conviction for insurance fraud immediately started working as a “paralegal” for various unscrupulous lawyers and continued to stage accidents and create and profit from insurance fraud.

In Allen L. Feingold v. State Farm;, No. 19-2621, United States Court Of Appeals For The Third Circuit (December 24, 2020) another disbarred lawyer refused to follow the orders that were conditions of his disbarment.

Allen Feingold sued State Farm naming many asserting a claim of bad faith. The claim arose from an underinsured motorist action of Feingold’s former client, Dawn McAteer, who assigned her bad faith insurance claim to Feingold. 

Feingold did not have statutory permission to assign bad faith claims.

Feingold as a disbarred attorney is prohibited from having any contact with previous clients. Thus, enforcing the assignment would violate public policy.