Professional Liability Matters

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April 2, 2014 • Cyber-Liability, Professional Liability Matters

Cy-“Burned” – The New Importance of Cyber Insurance

Data breaches that result in the unwanted dissemination of personal information are prevalent in the news of late, particularly given the rapid growth of electronically stored information and online commerce. A data breach can be very, very expensive even for the smallest of companies. On average, a relatively small breach that involves less than 10,000 records reportedly costs about $2.4 million in out-of-pocket expenses, $3 million in lost revenue, and no small amount of lost client confidence. Despite this risk, another recent study found that only 35% of small businesses invest in cyber insurance. This should be a major concern for all businesses and employers given that many standard policies exclude coverage for cyber losses.

April 1, 2014 • Director and Officer Liability, Professional Liability Matters

Professionals Targeted in Shareholder Suits

It is generally well settled that shareholders may sue a corporation’s board of directors. When business transactions go awry or in the wake of questionable (or certainly fraudulent) business practices shareholders have standing to sue directors and officers under theories of breach of fiduciary duty and the like. But shareholders may have other targets as well. Many corporations rely upon third-party advisors before making corporate decisions. May a shareholder target financial advisors, accountants, attorneys and other third-party professionals in this scenario? A recent decision suggests that shareholders armed with an “aiding and abetting” theory may sue the professional along with the board of directors.

March 26, 2014 • Cyber-Liability, Legal Malpractice, Professional Liability Matters

Insider Trading at Law Firms? You Bet.

Law firms house a treasure trove of sensitive documents, confidential information, trade secrets and other materials of immeasurable value. Most professionals are aware of these risks and take steps to safeguard cyber and hard copy materials. Yet, the frightening ease with which materials land in the wrong hands was made public recently when a stock broker and a law firm employee were arrested on charges of fraud in connection with a $33 million insider trading scheme.

March 25, 2014 • Ethics, Legal Malpractice, Professional Liability Matters

Lying During Settlement Negotiations

Attorneys are bound by strict ethical rules that mandate truthfulness in statements to others. However, when it comes to settlement discussions, many attorneys channel their inner Pinocchio and lie, exaggerate, mislead, bluff, bend the truth, and misrepresent. In an effort to be a zealous advocate and obtain a favorable result for our clients, attorneys must negotiate without revealing the true bottom line. But, there is a point when a little lie is actually an ethical violation. Where does the line fall between puffery and improper misrepresentations?

March 21, 2014 • Employment Practices Liability, Professional Liability Matters

Are March Madness Office Pools Legal?

Brace yourselves, employers: March Madness is upon us. Thursday, March 20, was the first full day of the 2014 NCAA Men’s Division I Basketball Championship Tournament games, and the tourney does not conclude until the Championship Game on Monday, April 7, in Arlington, Texas. During the tournament’s three weeks, the US economy will lose an estimated $1.2 billion in productivity as employees watch early round games, participate in office pools, and discuss the outcomes with co-workers. The question remains, are these office pools legal?

March 20, 2014 • Ethics, Legal Malpractice, Professional Liability Matters

Attorney Reprimanded for Criticizing Out-of-State Judges

Attorneys are expected to show the utmost respect when appearing before the judiciary. There is a line that differentiates zealous advocacy and disrespect. In a recent decision, a New Jersey attorney learned a valuable lesson about bad mouthing the court, even if that court sits in another jurisdiction.

March 19, 2014 • Employment Practices Liability, Professional Liability Matters, Technology

Great Career “Moves” – Treadmills in the Office Boost Productivity

In the non-stop business world, many employees struggle to find time to exercise. Yet, some employers encourage physical fitness as a means of boosting the health and productivity of their teams. A recent study suggests that a new double-tasking combination – exercising while working – might be a good business “move”.

March 18, 2014 • Ethics, Professional Liability Matters

An Ethics Lesson from Judge Judy

Popular television judge “Judge Judy” is known for her no-nonsense approach inside her courtroom. Based on the recent lawsuit she filed against a law firm, it would appear that she maintains that same approach outside the courtroom. Judith Sheindlin – better known as “Judge Judy” filed a March 12 lawsuit alleging that a fellow Connecticut attorney used her image in advertisements without permission. The suit provides another reminder of the risks of attorney advertising.

March 17, 2014 • Professional Liability Matters, Professional Liability Monthly

Professional Liability Monthly – March Edition is Now Available

Case analysis in this edition of Professional Liability Monthly include: Court Refuses Design Professional’s Bid to Avoid Liability Reliant on Future Inspection or Approvals A Plaintiff’s Complaint Alleging Defamation and Violations of Connecticut’s Unfair Trade Practices Act Is Stricken Under the Absolute Litigation Privilege Pennsylvania Enacts Benevolent-Gesture Bill Into Law Evidence of Informed Consent Inadmissible in Medical … Continued

March 17, 2014 • Professional Liability Matters, Professional Liability Monthly

Cases for Professional Liability Monthly – March 2014 Edition

The below cases correspond with the March edition of Professional Liability Monthly and the analysis of each case. Click here to access to the newsletter. Cases are provided courtesy of LexisNexis. Brady v. Urbas Granger Constr. Co. v. G.C. Fire Prot. Sys. Meyers, Harrison & Pia, LLC v. Riella Ntumbanzondo v. Bang Chau Scalise v. Cummings & Lockwood, LLC … Continued