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16 March 2022ILS

Avrahami fall-out rumbles on

Clark & Gentry PLLC, the law firm at the heart of the Avrahami captive case, is being sued by its insurers Medmarc Casualty Insurance Company. Medmarc is seeking a declaration that it is not obligated to indemnify the firm and affiliates for lawsuits arising from its captive services.

Clark & Gentry closed its captive operations at the end of 2017 after the Avrahamis case, which determined its micro captive fell outside of the scope of tax elections, including 831(b) for investment income up to $1.2 million. The cases Medmarc seeks to escape liability for include those from Avrahami owners.

A proceeding yesterday determined that motions in the case will be due 14 April with depositions by 6 September.

Last year, Clark & Gentry managing partner Celia Clark filed with the US District Court of the Southern District of Florida challenging more than $11 million in penalties imposed by the IRS.