Professional Liability Matters

LATEST INSIGHTS

October 27, 2016 • Professional Liability Matters, Technology

The Ethical Obligation of Technological Competence

Competence is essential to a successful practice. Competence requires that professionals develop the skill set and knowledge base to meet their clients’ needs and keep up with changes in their practice area. In the modern age, remaining competent also entails that professionals understand and incorporate new technology into their practice. Utilizing new technologies helps to expand professional capabilities, promotes efficiency, and enables professionals to remain competitive. But keeping up to date with technology is not simply good advice for professionals who want to get ahead – it may also be an ethical obligation.

October 24, 2016 • Accountants, Professional Liability Matters

Auditor Has No Fiduciary Duty to Company

In a widely watched and long-awaited decision, the North Carolina Supreme Court definitively determined that an independent auditor has no fiduciary duty to the company, overturning a 2014 Court of Appeals decision finding that such a duty existed. The court, however, was evenly divided on the issue of whether the company’s claims were barred by the defenses of in pari delicto and contributory negligence, leaving undisturbed (albeit without precedential value) the Court of Appeals’ decision that the defenses did not bar the remaining claims. Certified public accountants live to fight another day for the validity of the in pari delicto defense in North Carolina.

October 14, 2016 • General, Professional Liability Matters

We Need Your Vote!

Attention blog readers! We are proud to announce that Asbestos Case Tracker has been nominated in The Expert Institute’s “2016 Best Legal Blog Contest.” Over the past month, the Expert Institute has narrowed the field to the most “exciting, entertaining, and informative legal blogs online today.” To be officially named one of the best legal … Continued

October 13, 2016 • Legal Malpractice, Professional Liability Matters

What’s Reasonable Attorney Review?

Although some law firms are slow to embrace new technologies, debt collection firms appear to be the exception to this general rule. Most of these firms use sophisticated computer software to retrieve information from their creditor-clients, and use the program to automatically populates legal forms. This process saves a significant amount of time for attorneys in a high-volume field, allowing them to file hundreds of basic pleadings in a single day. However, this process has come under increasing scrutiny from both debtors’ rights firms and the government.

October 7, 2016 • Coverage, Legal Malpractice, Professional Liability Matters

Malpractice for a Client’s Failure to Report

Although some law schools are notorious for offering elective courses like “space law” that are of limited practical use to most attorneys, there is still a set of core classes that are invariably recommended. Courses such as tax law and corporate law often fall into this group, as most lawyers will have to consider tax repercussions or the structure of a company at some point in their careers, regardless of their practice area. One big firm is now learning that despite the dearth of classes in insurance law, it is a subject that every attorney should become familiar with.

October 6, 2016 • Legal Malpractice, Professional Liability Matters

Professional Plagiarism Leads to Copyright Claim

Clients expect professionals to work diligently on their behalf, but also want them to achieve results in a cost-effective manner. Experienced professionals are able to accomplish both ends by drawing from their knowledge base and past work product, rather than attempting to reinvent the wheel each time they undertake a new task. For instance, in the legal profession, it often behooves attorneys to begin legal research on novel issues within their firm to see if others have already addressed the issue and have analysis on hand. But attorneys may at times also find it useful to look to publicly-accessible briefs and filings from outside firms to see how others have addressed the topic. Relying on such third-party work-product, however, could be a recipe for professional liability.

September 29, 2016 • Professional Liability Matters, Technology

Too Reliant Upon Technology?

Recent technological advances have rapidly changed the way professionals operate. Professionals are no longer tied to their offices, have myriad resources at their fingertips to research new issues and handle new tasks, and are able to reach new clients through social media. In general, these advances allow professionals to work more efficiently, increase their output, and broaden their professional footprint. However, professionals must tread cautiously when they employ technologies that do not merely assist with professional services, but actually supplant the professional’s role.

September 23, 2016 • Accountants, Conflicts, Professional Liability Matters

SEC Big 4 Settlement: CPA is Too Close to the Client

Eager young accountants – all professionals, really – often set high goals, but the most common endgame for most is to become a “rainmaker.” Those who build significant relationships and turn leads to a regular stream of business are often in a position to excel professionally. While perceived expertise in a particular field is a must, it is often the relationships that set these partners apart. But when does a relationship become so familiar that a CPA may lose his independence? The SEC recently weighed in on that topic in announcing its recent settlement with Ernst & Young.

September 22, 2016 • Coverage, Legal Malpractice, Professional Liability Matters

What to Report and When?

Applying for malpractice insurance is a critically important process and a necessary risk management tool. Professionals must be sure to complete the applications completely and must take steps to include all pertinent information. In a recent decision, the Northern District of Illinois concluded that an attorney omitted material information in his application and denied coverage. The result could be devastating for the attorney.

September 14, 2016 • Professional Liability Matters, Risk Management

Attorneys Facing Addiction

It is an unfortunate reality that the legal profession reportedly has one of the highest levels of addiction of any occupation in the country. Although many states maintain hotlines and other services available to attorneys, it is all too common that addiction struggles advance to the point where ethical violations result for the attorney.