LONDON (Bloomberg) ? Clifford Chance, the world?s largest law firm, sued its insurer to recoup part of a settlement it paid to another firm that shut down after accusing Clifford Chance of destroying it by luring away 17 partners.

?Defendant has refused ? and continues to refuse ? to reimburse Clifford Chance for the remaining moneys due under the policy,? the law firm said in a lawsuit filed in New York state court against Indian Harbor Insurance Company. Indian Harbor of Stamford, Connecticut, today moved to transfer the August 8 lawsuit to federal court in New York.

Clifford Chance settled with Brobeck, Phleger & Harrison, the now-bankrupt San Francisco firm, in December. Clifford Chance agreed to pay $5.5 million, the Recorder, a legal publication, reported at that time.

Clifford Chance?s policy, providing management liability insurance, covered a ?company wrongful act,? according to the complaint. In May, Indian Harbor sent Clifford Chance part of the money the firm says it?s owed, refusing to pay the rest, according to the complaint, which does not mention any amounts.

Indian Harbor?s lawyer, Richard A. Simpson of Ross, Dixon & Bell in Washington, declined to comment. Robin Shanzer, a Clifford Chance spokeswoman, and William J. Schwartz, its outside lawyer from Kronish Lieb Weiner & Hellman in New York, did not immediately return calls for comment.

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