Legal Developments and Risk Management Tips Impacting the Professional Liability Community.
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 …
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.
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.
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.
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.
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.
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.
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.
Attorneys consistently provide guidance to clients, but not all of the consultation may be considered legal advice. Often an attorney’s role extends beyond the boundaries of legal advice and into other topics such as general business advice. When this occurs, the definition of what constitutes “legal advice” can become blurred, which has implications on privilege. In the recently released decision in Harrington v. Freedom of Information Commission, et al., the Connecticut Supreme Court examined this issue in detail. According to the court, the case “provides an opportunity to address the circumstances under which communications relating to both non-legal and legal advice may be covered by the attorney-client privilege.”
Clearly, it is the specific terms of an insurance contract that dictate whether certain claims are covered or denied. In an interesting decision out of Illinois, the court faced the question: when is an attorney practicing law “in the service of another” and how does that impact coverage. This distinction was critical to whether a claim against an attorney would be covered by a commercial general liability (“CGL”) policy.