Professional Liability Matters - Page 29 of 69

LATEST INSIGHTS

February 25, 2016 • Engagement Letters, Professional Liability Matters

When Does the Engagement End?

It’s easy enough to determine the statute of limitations for a malpractice claim. It’s not as easy to determine when the limitations clock begins to click. In New York, for example, the limitations period is three years but courts have grappled with questions regarding when a relationship between attorney and client ends. Courts have more recently employed what’s become known as the continuous representation doctrine in order to extend the accrual time. However, a recent decision in the Southern District of New York highlights an about-face of sorts.

February 24, 2016 • Ethics, Privileges, Professional Liability Matters

Subpoenas and Ethical Duties to Clients

Subpoenas provide a means to obtain testimony or documents from a non-party. Many lawyers routinely issue subpoenas during the discovery or trial phases of litigation. But lawyers are sometimes on the receiving end of a subpoena. This is when things get a bit tricky.

February 16, 2016 • Conflicts, Engagement Letters, Professional Liability Matters

Advance Conflict Waiver = Unenforceable

Even the most experienced of professionals cannot predict the future. So, as a risk prevention measure, many of us turn to the next best thing by agreeing to clear contractual terms with our clients so as to eliminate confusion down the road. We spell out the terms and scope of our engagement and we identify the client’s responsibilities in an effort to avoid problems before they arise. We attempt to reach agreements today that may impact us tomorrow. According to the ABA, conflicts of interest are one of the most common legal malpractice claims so some attorneys may be tempted to seek a waiver of future conflicts in their engagement letters. This practice does not work. Consider for example the following case out of California.

February 10, 2016 • Employment Practices Liability, Professional Liability Matters

Wrongfully Reviewed? Risks of Performance Review Process

Performance reviews are a necessary step in the path to ensuring a team of productive employees. However, as illustrated by a series of recent lawsuits filed by Yahoo employees against the internet giant, performance reviews are not without risks to the employers who administer them. In one such suit, an employee alleges that he and approximately 600 other Yahoo employees were unfairly fired based upon an allegedly unfair performance evaluation system, and were terminated without the notice required by federal and state laws, including the Worker Adjustment and Retraining Notification Act (WARN).

February 9, 2016 • Law Practice Management, Professional Liability Matters, Sanctions

Lawyer Sanctioned for Employee’s Misconduct

An attorney can’t be held accountable for her client’s breach of the Rules of Professional Conduct, right? Wrong. Model Rule of Professional Conduct 1.15 provides that a lawyer cannot commingle a client’s property (i.e. money) with the lawyer’s. Seems simple enough: don’t mix personal with business. However, what happens when the lawyer complies with this standard but her employee doesn’t? According to a Texas state court, the lawyer is still responsible.

February 4, 2016 • Privileges, Professional Liability Matters

Dual Representation Risks Waiver of AC Privilege

Professionals must communicate clearly with clients regarding the existence and scope of the professional-client relationship. This is especially true for general counsel, who represent a company but also interact with its employees. We discussed these issues here in the context of the Penn State/Sandusky scandal two years ago but lingering issues remain which highlight the risks of dual representation.

February 2, 2016 • Coverage, Legal Malpractice, Professional Liability Matters

Coverage Denied for Attorney Mixing Legal and Business Advice

Lawyers wear many hats; the key is not to wear them all simultaneously. Many lawyers are well versed in areas outside of the law and can be a source of non-legal knowledge for clients. However, lawyers need to be mindful when their services extend beyond the traditional landscape of legal advice. Mixing business interests and legal advice can easily get you in hot water if the transaction goes awry. Take for example the case of Burk & Reedy, LLP v. Am. Guarantee & Liab. Ins. Co., in which a professional liability insurer denied coverage for an attorney that was involved in both the legal and business aspects of a transaction.

January 26, 2016 • Professional Liability Matters, Sanctions

Sanctions for Tainting Jury Pool

The Constitution guarantees the right to an impartial jury. This right is critical to ensuring a fair trial. While not specifically outlined in the Rules of Professional Conduct, it should go without saying that an attorney may not interfere with a party’s right to a fair trial. Nonetheless, PL Matters would have considerably less to discuss if professionals always followed the rules. Take for example the following case out of Texas where an attorney learned the hard way not to tamper with the jury process.

January 21, 2016 • Cyber-Liability, Professional Liability Matters

Liability for Failing to Prevent Cyber Risk

Cyber liability threats continue to pose a danger for companies and professionals. In order to help mitigate the damages of cyber breaches, businesses are becoming increasingly reliant on third-party security vendors to provide cyber consulting and to manage their data security risks. While prioritizing data security is an important step for firms to take to minimize their own exposure, it is not always possible to eliminate threats entirely. And when breaches do occur, businesses and their customers may look to hold these third-party data security companies accountable for failing to prevent attacks.