Fifth Circuit Finds Shelton & Associates Misrepresented Risk in Insurance Application

In Mississippi, material misrepresentation to an insurance company applies if “knowledge of the true facts” might have changed an insurance company’s decision to provide coverage. Fifth Circuit Court of Appeals judges found attorney Jason Shelton and his law firm Shelton & Associates misrepresented their risk to be sued when applying for malpractice insurance in 2013. The court affirmed one judgment in favor of Imperium and vacated and remanded the second due to lack of subject-matter jurisdiction. Find the full case here.