Professional Liability Matters

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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 Although it’s uncommon for courts to ignore precedent, it does happen from time to time whether it be outdated, no longer applicable or due to the political/philosophical makeup of the presiding judiciary.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.

September 24, 2014 • Employment Practices Liability, Professional Liability Matters

Yellow Flag: Employers Need to Exercise Caution When Disciplining Employees for Off-Duty Conduct

NFL star Ray Rice was the subject of a recent media storm when he was suspended by the NFL due to allegations of domestic violence. Many have questioned the response by the NFL and the Ravens’ ownership’s to the Rice saga. This incident provides an opportune time to consider an employer’s obligations when it comes to an employee’s non-work related misconduct and underscores the debate over public and professional spheres. Can an employer discharge an employee for private conduct that has nothing to do with the job? How can an employer discipline an employee for conduct outside of the workplace without running the risk of suit?

September 23, 2014 • Legal Malpractice, Professional Liability Matters

Don’t Judge a Client by its Cover

Clients come in all shapes and styles, backgrounds and personalities. Some are needy; they are less knowledgeable and require handholding, they have a litany of questions and need more attention. Others are more sophisticated, understand the subject matter, have been there before and therefore ask less from you. The sophisticated client is a treat because she understands general concepts and allows you to focus elsewhere, right? Nope! The professional that takes her client lightly, hits the autopilot switch and relaxes her attention is asking for trouble. Consider this recent malpractice claim out of New Jersey.

September 18, 2014 • Legal Malpractice, Professional Liability Matters, Risk Management

The Continuous Treatment Doctrine: A Doctor’s Nightmare

Every jurisdiction maintains a series of statute of limitations which set the amount of time a litigant has to initiate a claim before it expires. Some of the purposes of these statutes is to prompt reasonable diligence by the plaintiff to initiate claims and to prevent exposure for long dormant claims. Attorneys are familiar with the various exceptions that act to toll the limitations period, and establishing when the statutory period begins to run can sometimes lead to protracted litigation in its own right. Here, we focus on the “continuous treatment doctrine” against the backdrop of a particularly scary decision for the medical malpractice community.

September 16, 2014 • Professional Liability Matters, Real Estate Professionals

What E&O Means to the Real Estate Professional

Attorney or accounting malpractice makes the headlines. Certainly we’ve all heard of high-profile medical malpractice cases. But the real estate professional community faces its own challenges. Real estate professionals face significant exposure to claims that may fall under E&O coverage. In particular, E&O coverage is useful when a buyer brings suit against an agent/broker for failure to disclose a property defect, for misleading the buyer about the purchase, or for breach of contract. Most commonly, E&O policies are useful for the real estate professional community when termite infestations, mold, hidden water damage, title problems, or disputes about square footage, easements, or property boundaries emerge.

September 11, 2014 • Legal Malpractice, Professional Liability Matters

Liability to Non-Clients: Rule Put to the Test

The general rule: attorneys are not liable to non-clients. Accordingly, apart from limited exceptions, privity is required to pursue a malpractice claim against an attorney. Despite this rule, plenty of non-clients file suit against attorneys. Are courts receptive to these all-too-common claims? A recent decision reinforces the general principle that privity is a must to proceed against an attorney.

September 10, 2014 • Cyber-Liability, Professional Liability Matters, Technology

Cyber Lessons from Jennifer Lawrence

As you’ve no doubt heard, hackers recently accessed dozens of female celebrities’ personal cloud-based storage accounts, releasing hundreds of nude photographs and videos onto the web. Many of the photographs were taken by cell phones, which automatically backed up the files to popular cloud services, such as iCloud and Dropbox. Some suspect that the hackers then employed targeted attacks in which “brute force” programs were used to randomly guess weak passwords for a given username until it found a match. Once inside the celebrities’ cloud accounts, the hackers could access all manner of personal information. This is how many criminals operate today and all professionals should pay attention.

September 3, 2014 • Professional Liability Matters, Sanctions, Trial Tactics

Overzealous Advocacy Leads to Sanctions: Part II

Attorneys have an obligation to provide zealous advocacy on behalf of their clients and to pursue a client’s interests within the bounds of the law. We recently posted an example of an attorney that crossed the line. Here’s another example which resulted in sanctions imposed upon an attorney for discovery abuse. In both cases, sanctions were levied against attorneys defending a deposition. Accordingly, we’ll take the opportunity to provide some tips to avoid a similar result in your practice.