Occurs when a client seeks to recover fees paid a professional for services
that when rendered resulted in the client suffering a financial loss due to
a negligently performed professional service. For example, a lawyer negligently
drafted a business contract that caused a client to lose money. In addition
to suing to collect the amount of the loss caused by the faulty contract, the
client also sues for a return of the legal fees he paid for drafting the contract.
Coverage for restitution of fees is excluded by many professional liability
insurance policy forms—typically those covering lawyers, accountants, and architects
and engineers. Another approach taken by a number of policies is to preclude coverage
for restitution of fees within their definitions of "damages" or "loss."
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