Afflicted with conflicts of interest, Budd Larner's 10-lawyer property insurance practice group has left the Short Hills, N.J., firm to open a specialized practice in Morristown.

The new boutique, Finazzo, Cossolini, O'Leary, Meola & Hager, the opening of which was announced on Oct. 17, primarily represents insurers and financial institutions in claims over hurricanes, fires and floods.

"We believe that we can expand our client base without confronting conflicts-of-interest issues that sometimes arose at Budd Larner between our clients and other clients of the firm," says one of the defectors, partner Rachel Rose Hager.

The group also left to gain flexibility to reduce its billing rates in a field that is highly competitive.

According to Hager, clients moving to the new firm include AIG, Liberty Mutual Insurance Cos., The Travelers Insurance Cos., Factory Mutual Insurance Co., Hartford Steam Boiler and Inspection Insurance Co. and Mt. McKinley Insurance Co.

Budd Larner chief operating officer Mitchell Rait acknowledges that the group took most of the specialty insurance clients, declining to name them.

He points out, though, that the firm's general insurance, reinsurance and subrogation practice is not compromised by the defection.

"It was an amicable move, and we wish them well," Rait says. "You regroup and move on."

Most of the defectors had been at Budd Larner for at least 12 years.

Hager started at the firm in 1995, a year after graduating from Rutgers Law School -- Newark. Her area is first-party and subrogation matters in complex claims over hurricane, mold, flood, asbestos and environmental cleanups. She also handles business-interruption claims and physicians' disability claims.

Christopher Finazzo, a partner, graduated from Rutgers Law School in 1979 and joined Budd Larner in 1985 after six years at Porzio, Bromberg & Newman in Morristown. He was lead counsel to Employers Insurance Co. of Wausau, a carrier for the World Trade Center in the 9/11 litigation. Among his areas of concentration are venture capital, business interruption, crime and fidelity, insurance fraud and subrogation.

Robert Cossolini, a partner, is a 1983 Rutgers Law School-Newark graduate who joined Budd Larner in 1985 after two years at Pitney, Hardin, Kipp & Szuch in Florham Park, N.J. He handles first- and third-party insurance, industrial property and fidelity insurance, subrogation and tort and commercial litigation.

Jeremiah O'Leary, a partner, was at Budd Larner since his graduation from Seton Hall University School of Law in 1996. He represents financial companies in consumer fraud, unfair and deceptive trade, predatory lending and shareholder cases.

Robert Meola, a partner, had been at Budd Larner since 1989, when he graduated from Seton Hall University Law School. His practice includes industrial insurance, subrogation and toxic tort, environmental and commercial claims.

Michael Mernin, counsel, a 1989 graduate of Georgetown University Law Center, joined Budd Larner in 1999 after three years at Gennet Kallmann Antin & Robinson in Parsippany, N.J., three years at Goodman & Jacobs in New York and two years at Hart & Hume in New York. He concentrates in first-party insurance, industrial property insurance, subrogation and fidelity-trust matters.

David DiSabato, counsel, is a 1996 graduate of Boston University School of Law who joined Budd Larner in 2005 after six years at Duane Morris in Newark, N.J., and three years at Riker, Danzig, Scherer, Hyland & Perretti in Morristown. He concentrates in financial services litigation, class action defense and complex commercial litigation.

Robert Wolf, counsel, graduated in 1986 from New York Law School and joined Budd Larner in 1994. Prior to that he spent four years at Pitney, Hardin, Kipp & Szuch in Florham Park, three years at Giordano, Halleran & Ciesla in Middletown, N.J., and a year at Cecchi & Politan in Lyndhurst, N.J. He handles partner and shareholder disputes, complex business litigation, commercial and industrial insurance coverage and subrogation.

Kim Schirripa, an associate, graduated in 2002 from New York Law School and spent four years at Leahey & Johnson, moving to Budd Larner in 2006. She handles commercial and industrial first- and third-party coverage cases.

Lisa Bouckenooghe, an associate, graduated in 2004 from Seton Hall University Law School and had been at Budd Larner since then. She also handles commercial and industrial first- and third-party coverage cases.

Budd Larner was ranked No. 15 in the New Jersey Law Journal's survey of the 20 top-grossing firms, published in April. The firm posted revenues of $46.8 million, net profits of $15.3 million, profits per partner of $618,000 and revenue per lawyer of $544,200 for its fiscal year that ended in August 2007. With the defections, the firm is down to 85 lawyers.