Professional Liability Matters

LATEST INSIGHTS

November 30, 2015 • Accountants, Engagement Letters, Professional Liability Matters

Limitation on Liability Clause Not Enough to Protect Accountant

Here at PL Liability Matters we have written on numerous occasions about the importance of an engagement letter. The engagement letter is a critical tool for setting expectations and managing risks. As we have said before a well drafted engagement letter can deter malpractice claims and in meritless suits it can be “Exhibit A” to a dispositive motion. A case out of New York involving an accountant-client relationship demonstrates just that scenario. Unfortunately in this case, however, the court found that the engagement letter did not sufficiently limit the risk to the professional in order to avoid the malpractice claim.

November 18, 2015 • Employment Practices Liability, Insurance Products, Professional Liability Matters

The DOJ on D&O: What You Need to Know

In September the Department of Justice released its new directive on individual accountability for corporate wrongdoing in a revived effort to fight corporate fraud. The “Yates Memo” by Deputy U.S. Attorney General Sally Quillian Yates, outlines the DOJ’s policy on targeting and pursuing corporate executives in cases of corporate wrongdoing. With the DOJ’s new guidelines companies should be taking a fresh look at their D&O insurance.

November 16, 2015 • Employment Practices Liability, Professional Liability Matters

Fashioning Employee Schedules: Employees Question Compensation Practices

Technological advancements have impacted employee scheduling in certain industries. Notably, employers with access to real-time data that suggest the level of expected business on any given day may require employees to be “on call.” But, in a recent lawsuit against clothing retailer Forever 21, employees allege they’ve been subjected to “exploitative” scheduling practices regarding so-called “on call” shifts. Comparable suits have recently been filed against other fashion retailers like Victoria’s Secret and BCBG Max Azria, regarding similar policies.

November 10, 2015 • Legal Malpractice, Professional Liability Matters

Fee Shifting in Malpractice Cases

The concept of fee shifting in the field of legal malpractice may not be well known or understood if you don’t practice in New Jersey. That is because New Jersey is one of the only states to employ this unique fee structure. The so-called “Saffer rule” was created by the NJ Supreme Court decision in Saffer v. Willoughby, in which the Court held that clients may recover as consequential damages the legal expenses and attorneys’ fees they incur in prosecuting a malpractice claim against their former attorney. Recently, the NJ Supreme Court heard oral argument in the case of Innes v. Marzano-Lesnevich, to determine whether attorney-defendants can be liable for attorneys’ fees as consequential damages to a non-client under Saffer.

November 3, 2015 • Coverage, Medical Malpractice, Professional Liability Matters

Liability for Lack of Malpractice Insurance?

Friends of PL Matters know that maintaining malpractice insurance is a must, regardless of your profession. Clients count on professionals to get things done right. When things don’t go exactly as planned, clients get unhappy, lawsuits are filed, and malpractice insurance kicks in to protect the professional. But what if the professional lacks insurance? May the client maintain a cause of action for lack of insurance?

October 28, 2015 • Professional Liability Matters, Technology

Lamar Odom & HIPAA: A Kardashian Takeaway for Employers

Reality television fans and others were saddened recently when news of a Kardashian family member’s overdose hit the news. Lamar Odom, sometime beau of Khloe Kardashian, was hospitalized after the incident, and his privacy was reportedly violated when staffers at the medical center where he was treated took pictures of him. The staffers were immediately fired due to this conduct. Lamar’s plight contains a teachable lesson for those employers who must comply with the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule, which protects the privacy of personal health information (PHI).

October 27, 2015 • Coverage, Professional Liability Matters

Coverage Denied for Failing to Report

Obtaining malpractice insurance is an essential component of risk management for professionals. But, the obligations continue beyond the purchase. Like any contract, both sides are bound to comply with the contractual terms: the insurer and the insured. Accordingly, professionals must take the time to familiarize themselves with the scope of policy coverage and specific policy exclusions. Failure to fulfill the requirements of a policy provision could mean the loss of coverage and individual exposure.

October 23, 2015 • Legal Malpractice, Professional Liability Matters

High Times: Ethics of Marijuana Advice

Marijuana laws in the US are rapidly changing. Colorado, Oregon, and Washington have legalized marijuana outright for recreational use. Twenty more states and the District of Columbia have legalized the use of marijuana for medicinal purposes. Now, the Pennsylvania legislature has proposed a new law that would permit limited medical marijuana use. Despite these changes at the state level, marijuana is still classified under federal law as a Schedule I drug that has no accepted medical use. Inconsistencies between state and federal laws create potential ethics dilemmas for professionals who seek to advise clients operating in the marijuana industry. In order to assist professionals navigate this murky legal landscape, the Pennsylvania Bar Association Legal Ethics and Professional Responsibility Committee recently issued a formal ethics opinion directed to counsel who provide legal services to marijuana-related businesses.

October 22, 2015 • Experts, Medical Malpractice, Professional Liability Matters

Proper Use of Expert Opinions

Expert witnesses are critical in many professional malpractice cases. This is particularly true in the med-mal context where expert testimony may be necessary to help understand causation. More specifically, experts in medical malpractice cases are essential in helping the fact finder determine whether the medical professional’s actions (or inactions) were the cause of the alleged injury. Whether an expert succeeds in this task can be the difference between a win and a loss at trial and in some cases on a motion for summary judgment. Take for example the following scenario.

October 16, 2015 • Design Professionals (A&E), Professional Liability Matters

Does the Implied Warranty of Habitability Extend to Architects?

First recognized in 1972, the implied warranty of habitability protects building buyers and owners from latent construction defects by permitting recourse from builders and sellers. In a case of first impression, the Illinois Appellate Court recently held that this theory does not extend to the work of an architect. The decision significantly impacts the defense of design professionals in Illinois and is worth considering for all design professionals and the attorneys who defend them.