BENTON - Berkley Insurance dismissed Daniel Broombaugh of St. Louis and Cheryl Fisher of Swansea from a suit seeking a declaration that a malpractice policy of their former firm doesn’t cover misappropriation of client funds by their former partner Jason Caraway.
Berkley counsel Jeremy Macklin of Chicago advised U.S. District Judge Staci Yandle on Dec. 13 that Broombaugh and Fisher stipulated to be bound by her judgment.
"They do not wish to actively participate in the defense of this action," he wrote.
He amended the insurer’s complaint on Dec. 16 not only to remove Broombaugh and Fisher but also to add and subtract victims of Caraway as defendants.
Berkley has amended the complaint three times in 14 months as victims have sued and settled and as Berkley itself has discovered victims.
Each complaint has reserved spots for up to 25 John Does and the current one names a victim Berkley learned about but hasn’t found.
Justices of the Illinois Supreme Court disbarred Caraway in May.
They adopted a report that a hearing board of the Attorney Registration and Disciplinary Commission adopted in January finding Caraway misappropriated about $375,000 from six clients.
The commission found more victims and began approving claims from a client protection fund that all lawyers support.
In October, the ARDC advised Caraway that it approved about $350,000 for 16 victims.
It reserved a right to seek restitution and according to Berkley’s complaint Caraway seeks indemnity to the extent of his liability.
Macklin requested a declaration that it doesn’t have to pay restitution.
He requested a similar declaration for settlements Caraway agreed to pay.
He requested a similar declaration pertaining to “the Kostecki potential claim.”
Yandle set trial to start on Feb. 18 but in November she stated Berkley could move to amend the schedule after amending the complaint.
ARDC commissioners approved these claims from former clients of Caraway against a client protection fund:
Stephani Reynolds, $64,072.18
John Pawloski, $64,072.18
William Austin, $45,454.50
Velma Oliver, $26,060.14
Michael Graham, $23,200
Tywon Webster, $20,764.50
Sarah Voelker, $17,949.95
Leslie Rader, $15,000
Rosalinda Carrasco, $14,214.89
Ronald Stewart, $13,2101.63
John Sheahan, $11,921
Ralph Luna, $10,583.80
Terri Willingham, $9,890
Rachel Jackson, $5,200
Erika Wurth, $4,250
Donald Cookson, $2,000
The ARDC can recover these amounts from Caraway who claims Berkley should pay. Commissioners stipulated they would be bound by the court’s judgment.