Ohio Security files lawsuit against law firm, alleging that an employee misappropriated settlement funds.

Ohio Security Insurance Company is in a legal battle after claiming that an employee from a Florida law firm misdirected a settlement payment. The insurer says it made two payments because the first was allegedly sent to the wrong account.

The situation began when Ohio Security issued an insurance policy to Praters Insulators, LLC. This company faced a lawsuit from Joni and William Byrd in Bay County, Florida. The Byrds alleged they suffered health issues from fiberglass exposure due to insulation work done in their townhome. Ohio Security defended Praters in this case and eventually decided to settle the Byrds’ claims.

On August 13, 2025, Ohio Security filed a complaint in the Northern District of Florida, outlining its side of the story. According to the complaint, The McKee Law Group, which represented the Byrds, informed Ohio Security that it could not accept a physical check due to an audit. Instead, the law firm requested that the settlement money be sent electronically.

Pamela Rodriguez, an employee at The McKee Law Group, provided the payment instructions for this electronic transfer. In December 2023, Ohio Security followed these instructions and sent the funds. However, The McKee Law Group later claimed it had not received the payment and filed a Motion to Compel Settlement Payment. Ohio Security then issued a second payment, which the law firm confirmed it received.

Ohio Security alleges that Rodriguez gave incorrect banking information and then took the first payment for herself. This led the insurer to claim it paid out double the settlement amount. The complaint includes serious accusations against Rodriguez, such as fraud and negligence, and also blames The McKee Law Group for not properly supervising her actions.

Ohio Security is seeking damages for the lost settlement funds, as well as punitive damages against Rodriguez. The case is still ongoing, and no court has made any decisions regarding the allegations. A jury trial has been requested, and the outcome remains to be seen.

Author

  • 360 Insurance Reviews Official Logo

    Sophia Langley runs real-life budget scenarios to recommend coverage mixes that protect households without sinking their monthly finances.