Legal Developments and Risk Management Tips Impacting the Professional Liability Community.
Goldberg Segalla founding partner Thomas F. Segalla led the team of lawyers who wrote the inaugural edition of the Reinsurance Professional’s Deskbook: A Practical Guide, a new treatise co-produced by leading legal publisher Thomson Reuters and DRI – The Voice of the Defense Bar, the largest organization of defense lawyers in the country.
We work in a competitive environment in which professionals seek various methods to reach would-be clients. Social media and other electronic resources may help professionals to connect and establish the brand. But, your friends at PL Matters routinely warn of the risks of new marketing methods that may infringe upon applicable ethics rules. A New York law firm recently learned that unsolicited text messaging may constitute improper advertising.
There are many benefits to working in a professional firm including the ability to collaborate and seek support from colleagues. Teamwork amongst colleagues may improve efficiency, innovation, flexibility and branding. But, through the doctrine of vicarious liability, a professional may be liable for her colleague’s conduct in certain situations. There are various corporate models intended in part at protecting an individual for corporate (mis)conduct. But these models are not bulletproof. A recent New Jersey decision emphasizes the double-edged nature of practice in a professional corporation in the context of a multi-attorney law firm. In light of this case, we took a closer look at the benefits and risks of attorney partnerships.
Everything is electronic. Companies are increasingly reliant on electronic processes to obtain and store valuable customer data, confidential, privileged and proprietary information. With that increased reliance comes the increased risk that this information can be compromised. In light of many recent high-profile data breaches, litigation surrounding data and privacy protection is increasing. A side effect of this litigation is the attention now paid to the role of boards of directors in managing and responding to cyber liability risks. Boards concerned about potential liability of its officers and directors can look to two recent sources for guidance on this issue.
Whether it’s a fruit basket from a vendor or an employee gift exchange, it’s that time of year when the approaching holidays can stir up a frenzy of gift giving in the office. Many companies find themselves struggling to define what is appropriate, fair and festive when it comes to holiday gift giving. Certainly no one wants to be a Grinch, but creating a clear gift policy ahead of time is an easy way to avoid controversy and liability. Consider the following tips when creating a company gift policy.
The practice of law is changing. In particular, as a result of modern technology, attorneys’ reliance upon support staff is not what it used to be. This has impacted the role of paralegals, members of a dwindling field. Indeed, according to the 2012 Survey of Law Firm Economics, the average number of paralegals per law firm has dipped by over 30%. However, paralegals still play an important role in a law firm. If utilized effectively, paralegals have proven to be invaluable players who provide a key service to clients.
Hiring a new employee is a major investment. Not surprisingly, many professionals utilize social media to screen potential candidates prior to making a hiring decision. Social media can help to confirm a candidate’s professional qualifications and provide insight whether the candidate is a good fit. At the same time, some employers may use social media to identify potential reasons to reject a candidate, such as posting compromising photographs or making inappropriate statements. Employers may feel justified in disqualifying a candidate based on their social media activity; however, doing so for the wrong reasons could violate a candidate’s rights and give rise to liability.
The legal profession is somewhat unique in that it permits self-policing. An attorney has an obligation to report misconduct; however, a threat to report misconduct may itself run afoul of the ethical rules. At issue are at least two competing rules of professional conduct. We all want to make sure attorneys, as a group, are fighting cleanly, but these competing rules present a dilemma. How to know when, if, and how to report?
Professionals take great pains to develop a positive reputation. Consequently, like all employers, many professionals monitor employee online activity to ensure that it adheres to internal policies and ethical standards. At times, employers may be justified, or even expected, to take action to limit online activity, such as when an employee makes defamatory statements that could be attributed to the employer. On the other hand, however, employers must take care not to infringe upon an employee’s statutory rights to voice legitimate criticism of their employer or to engage in activity to improve the circumstances of their employment. Doing so could violate federal labor laws. Just ask the NLRB.
Statute of limitations laws are intended to protect defendants from stale and meritless claims. Moreover, these statutes pressure plaintiffs to institute supported causes of action while the evidence is ripe. Certainly, these statutes are an ally to the defense bar and can be a major obstacle for plaintiffs. A plaintiff asserting a professional malpractice claim may attempt to circumvent a time-bar defense through the continuous representation doctrine. The argument is that the continuing professional-client relationship delays the accrual of a claim. This theory was recently asserted successfully in New York against an attorney.