Professional Liability Matters

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December 13, 2016 • Law Practice Management, Professional Liability Matters

Is the Unfinished Business Doctrine Finished?

Many professionals do not end their careers where they started. Professionals are on the move. The vast majority of professionals are impacted by the transition of a colleague from one firm to another. In fact, with the increase in online media covering the legal industry in particular, news of partner transitions is readily available. In a recent California case, a trustee of a bankrupt law firm has taken the position that the dissolved firm should retain all ongoing legal fees from cases started at the firm. This could have significant impact on how professionals transition their practice.

December 6, 2016 • Ethics, Professional Liability Matters

Objecting to Objections

Attorneys strive to be zealous advocates for their clients. Not surprisingly, when defending depositions, attorneys are often tempted to object to questions that they perceive to be damaging to their client’s case, even if the question itself is not improper. Attorneys should be cautious, however, to avoid making excessive objections that are not likely to be sustained.

November 23, 2016 • Law Practice Management, Professional Liability Matters

“Trust me, I’m a lawyer”

Attorneys are people too. In the midst of negotiating/litigating on behalf of clients, attorneys also manage their own day-to-day lives. Attorneys sign leases, enter into contracts, negotiate with vendors and otherwise engage in discussions that are personal in nature. It may be tempting for attorneys to seek leverage by boasting their title as “esquire” or to disclose the attorney’s affiliation with a particular law firm. But, to do so may trigger legal and ethical implications.

November 17, 2016 • Privileges, Professional Liability Matters

Does the A-C Privilege Survive a Company’s Death?

When it comes to interesting ethical quandaries, the case of U.S. v. Martin Shkreli is the gift that keeps on giving. As we discussed in a previous post, Martin Shkreli has asserted the “advice-of-counsel” defense in the securities fraud case he is facing in the Eastern District of New York. Since our last post, Shkreli has served a document subpoena on one of the law firms that represented several of his companies, as well as him personally. What complicates this matter, however, is the fact that many of these companies are now defunct and therefore lack any active individuals who can waive the attorney-client privilege on their behalf.

November 7, 2016 • Defenses, Legal Malpractice, Professional Liability Matters

Breach of Contract or Tort? Does it Matter?

The professional-client relationship often begins with a retainer agreement/engagement letter: a contract that defines the terms and scope of professional services. Accordingly, when a client files suit alleging professional malpractice, the claims will generally sound in both contract and tort. Whether a claim is asserted as a breach of contract or tort can have important implications with regard to the statute of limitations and other potential defenses. For instance, depending on the state, a tort claim may be time-barred where a breach of contract claim is not.

November 3, 2016 • Legal Malpractice, Professional Liability Matters

When Does the Clock Start?

Determining the length of the statute of limitations is easy but the trick often comes in figuring out when the statutory period begins running. In the legal malpractice context, this may often present the difference between dismissal or protracted litigation. A recent New York Supreme Court decision has shed some further light on why it remains important for all parties to know the applicable statute and accrual date, and highlights yet another situation in which a Court will employ a jurisdictional accrual rule to bar a claim.

November 2, 2016 • Legal Malpractice, Professional Liability Matters, Sanctions

Frivolous Lawsuit Leads to Serious Damages

At one point or another, many attorneys will encounter a lawsuit they believe to be potentially frivolous. These claims often lead to frustration for the defending attorney and client who may face two difficult alternatives: (a) settle the case in order to avoid defense costs or (b) expend time and money in defending a meritless claim. A recent case out of Pennsylvania may give some hope to those forced to defend weak claims and might give pause to anyone considering such a suit in the future.

October 31, 2016 • Professional Liability Matters, Risk Management, Sanctions

Don’t Forget to Read Your Pleadings

World Wrestling Entertainment is punching back in a class action lawsuit filed by several of its former wrestlers. However, the WWE’s recent court filings take aim at the plaintiffs’ attorneys as much as the plaintiffs’ legal claims. The case provides us with a timely example of the ramifications of failing to carefully read pleadings before filing.

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.