Legal Developments and Risk Management Tips Impacting the Professional Liability Community.
There’s a great scene from the Office when Michael Scott continues to blindly follow his obviously incorrect GPS device until he has driven his car into a lake. Don’t be Michael Scott. There are times when an attorney must stop and question the client when the representation reaches an uncomfortable level or the attorney suspects wrongdoing.
Attorneys should proceed with caution when consulting with a client during deposition breaks. Whether it be for a hospitality break, lunch, or for an overnight adjournment, there is room for trouble when a client and attorney discuss aspects of an ongoing deposition. Depending on the jurisdiction, communication between attorney and client may not be considered privileged and may be fodder for deposition questioning.
Would you pay attention if we told you that Stefani Germanotta allegedly failed to pay her assistant over $375,000 in overtime pay? What if we told you Stefani Germanotta usually goes by “Lada Gaga”? Reportedly, the uber-famous singer reached a settlement in the 2011 FLSA lawsuit filed by her former personal assistant. The lawsuit serves as a reminder to employers of all sizes that unless their employees meet the requirements of the administrative exemption test, they must be paid overtime under the Fair Labor Standards Act.
Communication is a key to a healthy attorney-client relationship. Client input is critical for the attorney to develop an understanding of the underlying events and the client’s goals. However, when it comes to litigation strategy, the attorney must tread carefully when the client disagrees with the suggested approach. In this scenario, who’s the boss? By one account, the “scope of representation” is one of the “thorniest issues involved in legal practice” yet it is widely misunderstood. Often, the attorney who understands the ethical principles of allocation of authority is in a better position to effectively address the inevitable disagreement with her client.
Since Trayvon Martin’s February 2012 death, HOA liability and neighborhood watch groups have become a bit of a hot button topic. Following Martin’s altercation with George Zimmerman in the Florida housing complex known as The Retreat, Martin’s parents initiated a wrongful death suit against the HOA. Reportedly, that lawsuit recently settled for approximately $1 million. Now, some HOAs are rethinking risk management strategy and have taken a closer look at neighborhood watch groups in particular.
Many professionals travel frequently. Hence, professionals may accumulate various rebates, discounts, frequent flier miles or “cash-back” as a result of travel or credit-card incentive programs. Over the years there has been some chatter amongst tax-preparers as to whether those travel-related or purchase perks are considered taxable income. Let’s take a closer look at this risk management issue facing the accounting profession.
Group coupon websites are a popular marketing ploy among a variety of service providers. The concept behind Groupon, Living Social, and similar sites is for consumers to select from local deals for discounted services. Typically, once a threshold number of coupons are sold, the service provider and the website share the proceeds. The professional liability community has caught on to this marketing trend and is taking notice. However, be aware professionals; utilizing similar group coupon sites is risky due to ethical limitations.
In most circumstances an attorney may only practice law in jurisdictions where she is licensed. Practicing law in a foreign jurisdiction may expose the professional to prosecution for the unauthorized practice of law. The Ohio Supreme Court recently considered whether an attorney who is not licensed to practice in the jurisdiction is subject to the forum state’s disciplinary authority in Disciplinary Counsel v. Harris, 2013-Ohio-4026 (Ohio Sept. 26, 2013).
The October edition of Professional Liability Monthly is now available for download. Please click the continue reading link below to access the newsletter.
The below cases correspond with the October edition of Professional Liability Monthly and the analysis of each case.