Professional Liability Matters

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October 21, 2014 • Legal Malpractice, Professional Liability Matters, Risk Management

Know When to Hold ‘Em, When to Close ‘Em

Although not nearly as satisfying, in many ways closing a file is just as important to a professional as opening one. How and when to close a file is a component of best practices. Most professionals follow some document retention protocol (and if you don’t, you should). But an interesting wrinkle arises when it’s not entirely clear when the engagement has come to an end. Some cases are withdrawn, some clients sign an engagement letter but do not pursue the claim, some clients decide to retain new counsel without documenting the decision. To take into account these uncertainties, professionals must implement safeguards to monitor each client relationship and, when necessary, to document that the professional relationship has ended. By keeping files up-to-date, both old and new, professionals can help to avoid many hazards and ethical dilemmas.

October 14, 2014 • Ethics, Legal Malpractice, Professional Liability Matters

The Lying Client: An Attorney’s Obligations

ABA Model Rule of Professional Conduct 3.3, Candor Toward the Tribunal, mandates that an attorney may not knowingly offer false evidence. That’s the easy part: don’t lie. Things get a bit more complicated when it is the client engaged in knowing misrepresentations or deceit. In circumstances when an attorney is aware of a client’s lies, the attorney “shall take reasonable remedial measures, including, if necessary, disclosure to the tribunal.” But what are “reasonable remedial measures”? How soon must the conduct be reported and how? Although there is some helpful analysis available, it is within this gray area that many attorneys may find themselves in an ethical dilemma. Take for instance, the recently suspended Illinois attorney who waited 1 ½ years before correcting his client’s lie.

October 9, 2014 • Employment Practices Liability, Professional Liability Matters

Company Image Policy Leads to Discrimination Claim

Successful professionals promote values of cultural diversity, inclusion, and teamwork. However, occasionally a company policy of general application may have the unintended consequence of infringing on the religious practices of individual employees. Professional employers must tread cautiously when such a situation arises. Unintended discrimination may nevertheless violate civil rights laws protecting religious liberty.

October 7, 2014 • Legal Malpractice, Professional Liability Matters

Former Lawyer for Rosa Parks Targeted in New Suit

A New York auction house has targeted Rosa Parks’ former lawyer, claiming that he mishandled her estate. According to the claim, the attorney caused the auction house millions in damages based on his alleged misrepresentations that Parks’ heirs had authorized the estate to proceed to auction. In particular, Parks’ reported $10 million estate included her Congressional Gold Medal and a postcard from Martin Luther King, Jr. Instead of proceeding to an individualized private auction as originally contemplated, the auction house alleges that the attorney’s gaff led to a lump sum sale of the estate to a non-profit organization which gifted the items to a museum.

September 30, 2014 • Legal Malpractice, Professional Liability Matters

Malpractice for Failure to Predict Change in the Law?

Rules are made to be broken, right? The same can be said about legal precedent, which may change over time. Although it’s uncommon for courts to ignore precedent, it does happen from time to time whether it be outdated, no longer applicable or due to the political/philosophical makeup of the presiding judiciary. Unanticipated, new law may create unique problems for attorneys. When the law is clear, an attorney’s obligations are clear. The attorney needs to either distinguish it or apply that law to the facts of her case. But what happens when applicable precedent is overruled altogether? The lawyer can’t be expected to anticipate a change of law, right?

September 29, 2014 • Privileges, Professional Liability Matters

Fiduciary Exception Limits the Attorney-Client Privilege

The attorney-client privilege encourages full and frank communication between attorney and client, whether the client is an individual or a large corporation. Protecting confidential communications promotes broader public interests in the observance of law and the administration of justice. However, in shareholder derivative actions alleging harm by the corporation against stockholders, some courts have held that the corporate attorney-client privilege should be balanced with the interests of the shareholders, and that the privilege may therefore be subject to limitations. This is known as the “fiduciary exception,” which was recently upheld in Delaware.

September 26, 2014 • Professional Liability Matters, Risk Management

Rethinking the Professional Apology

Professionals are only human. Even the most cautious professional is not immune from the occasional mistake. Whether the mistake gives rise to a claim of professional malpractice, however, will often depend not on the error that was made, but on what actions the professional took to resolve the error after it occurred. Professionals are generally reluctant to admit responsibility for a personal mistake. Traditional wisdom suggests that doing so would amount to an admission of guilt that could provide damaging evidence in a future lawsuit. However, recent studies suggest that in cases where malpractice is clear, owing up to a mistake early can actually be the best method to settling lawsuits, or avoiding them altogether.