Legal Developments and Risk Management Tips Impacting the Professional Liability Community.
The most common forum for malpractice claims is civil litigation. However, a professional may find himself in a potentially worse situation if the appropriate professional regulatory board also gets involved. Take for example a recent case of accounting malpractice that demonstrates the serious side effects that can occur when an accountant falls short of the standards of the profession.
The attorney-client privilege is one of the most basic tenants of professional liability. While the general rule itself is uncomplicated, complex circumstances between attorneys and their clients can often trip up even the most experienced lawyer. Take for example the following New Jersey malpractice case involving a law firm’s general counsel which raises the question: who is really the client?
Professionals love to publicize success stories on the web. Writing posts on recent victories is a valuable way of marketing a practice and generating new business. In the case of professionals, however, success stories often entail details regarding clients, which could raise client confidentiality concerns.
Many professionals are transitioning from paper to electronic files. As a result, professionals tend to rely more heavily on electronic signatures. However, professionals must be cautious that e-signature technology does not violate any requirement to maintain traditional signatures with official filings.
Remember when you chose your first online login credentials? Perhaps it was for your brand new Hotmail account, or that lightning fast AOL dial-up internet. Like many people, it was probably the first time you ever had to choose a password and it was also probably some combination of your kids’ names, your spouse’s name or your mailing address. Like far too many people, your password in 2016 may not be much different from the one you made in 1996. Despite the best efforts of IT, most people are loath to complicate their lives with long and varying passwords. However, corporate espionage is a real threat in today’s computerized society and executives must realize that treating the privacy of your company account is a recipe for liability. While it may not be your job to keep the entire system safe, it is your job to keep your key to it safe.
If you are in the world of finance, accounting or tax chances are you have probably heard of Sam Wyly and his late brother Charles Wyly. In recent years, the business mogul brothers have been the hot topic of litigation as they battled with the IRS and SEC over alleged tax and securities fraud that may have spanned decades. In the most recent decision to come out of the Wyly saga, Sam Wyly was ordered by a Dallas bankruptcy court to pay $1.1 billion in back taxes, interest and penalties. While the litigation is noteworthy because of the massive amount of dollars involved, it can also provide some reminders for tax professionals, particularly those with sophisticated clients.
We appear to be in the midst of a new fitness renaissance. Trendy fitness programs such as CrossFit, Zumba and SoulCycle dominate social media mentions, while many others stick with tried and true exercise favorites such as running, swimming, biking, yoga, or a gym membership. Workouts and personal records are celebrated on people’s blogs, Facebook pages, and Instagram accounts. The apparent surge in fitness enthusiasm has brought with it a flood of new products designed to take advantage of the market; perhaps none more ubiquitous than wearable fitness trackers, such as those made by FitBit, Nike, Garmin and Samsung. These devices – which can track an astounding array of data, from heart rate to blood sugar to steps taken in a day – are an excellent resource for any fitness enthusiast, or anyone looking to create a healthier lifestyle. However, the demand for wearable tech designed to track our vital information may also prove crucially important to the manner in which we collect information to be used in litigation.
Attention blog readers! This year, the ABA Journal is publishing their 10th Annual “Blawg 100” celebrating the best legal blogs around today. In order to be named, we’ll need your help! Since the start of our blog in October of 2015, Asbestos Case Tracker has reported on hundreds of asbestos decisions and has been hailed …
Many professionals are proud of their work-product, their reputation, and their capabilities. Along those lines, many professionals are sensitive of their public image, including their online presence. Therefore, when others post critical reviews of a professional on social media, it may be tempting to respond in a defensive manner. But, be careful.
As a general matter, the Rules of Professional Conduct prohibit lawyers from sharing fees with non-attorneys. However, there are certain exceptions to that rule. Rule 5.4 states that “a lawyer or law firm may include non-lawyer employees in a compensation or retirement plan, even though the plan is based in whole or in part on a profit-sharing arrangement.” A recent case out of Pennsylvania describes how a non-lawyer attempted to put this exception into action, albeit unsuccessfully.