Professional Liability Matters - Page 48 of 69

LATEST INSIGHTS

May 29, 2014 • Cyber-Liability, Professional Liability Matters

The Target Data Breach Litigation Begins

In November 2013, in the midst of the holiday shopping season, hackers targeted Target Corporation with one of the largest security breaches of its kind. The hackers installed malware on the company’s security and payment systems to steal credit card information. The result impacted over 100 million customers. Given the magnitude of the breach, it may be surprising to learn that Target had prepared for an attack. It invested over $1.5 million in malware detection software in 2013 alone and hired a leading security firm to monitor for suspicious activity and alert the company in the event of a breach. Obviously, that wasn’t enough, according to a wave of recent lawsuits.

May 28, 2014 • Legal Malpractice, Professional Liability Matters

The Confess and Sue Method

In a previous post we recently discussed legal malpractice claims arising from an underlying settlement. In such “settle and sue” cases, some civil litigants are driven by buyer’s remorse, doubt, or other regret and conclude that they’ve given too much or accepted too little. Eventually, they make a “u-turn” and point the finger at their former attorney. A recent decision proves that similar regret may arise in the criminal context as well. We’ll call it the “confess and sue” malpractice claim.

May 27, 2014 • General, Professional Liability Matters

PL Matters Reaches 50,000th Hit

We’ve reached a milestone! PL Matters is pleased to report that we recently passed our 50,000th hit. We are humbled that thousands of professionals and employers (and our family members) decided to spend a few minutes — maybe more — on our site. Over the next 50,000 hits, we will continue working toward our goal of providing relevant and insightful content regarding the trends, legal developments, decisions, and breaking news impacting the professional liability community. Thank you for your time and your interest.

May 21, 2014 • Employment Practices Liability, Professional Liability Matters, Risk Management

Avoiding Legal Costs of Unpaid Internships

Summer is almost here – the sun, vacations, Coronas, and lawsuits arising from unpaid internships. We’ve previously warned of these risks here and here. Yet, the suits that some call the “new slip and fall case” are more frequent than ever. It seems that every week brings news of another lawsuit filed by unpaid interns. So, another reminder is warranted. Employers must beware of these risks and take precaution to ensure that they are not the next victim of an FLSA class-action claim.

May 15, 2014 • Experts, Professional Liability Matters

Be an Expert at Retaining Experts

Expert witnesses play a key role in professional liability matters. The perfect expert will work with counsel to identify and address issues during discovery and later will effectively condense complex issues to a jury in layperson terms. As a result, attorneys must carefully consider who they select and how to best utilize the expert. In a sense, an expert witness is just another tool available to the professional malpractice practitioner; an expensive and unwieldy tool if not vetted and monitored properly. Often, it is the attorney who may be left to answer for poor results arising from an expert’s misconduct.

May 14, 2014 • Legal Malpractice, Professional Liability Matters, Risk Management

The “Settle and Sue” Method

They say that a truly good settlement is one that leaves everyone unhappy. There is plenty of truth here. But some settling parties take their unhappiness to a new level by filing a malpractice claim. Whether it be buyer’s remorse, doubt, or the opportunity to reconsider the settlement without the distraction of active litigation, some settling parties determine that they took too little or gave too much away. This may be a part of the uncertainty of compromise and often dissipates over time without much fanfare. But sometimes it does not; some settling parties point fingers at their former counsel claiming that bad advice led to an unjust settlement. The result can be the “settle and sue” malpractice claim, which applies differently from jurisdiction to jurisdiction.

May 13, 2014 • Engagement Letters, Professional Liability Matters

Faulty Engagement Letters Is #1 Cause of Claims

Seriously; you still don’t require that your clients execute an engagement letter? Apparently not. Professional Liability Matters routinely warns of the risks of representing a client without a clear engagement letter. In addition to laying out the objectives of the representation, well-crafted engagement letters help to reduce the likelihood of claims from dissatisfied clients. It would seem obvious, then, that attorneys would require clients to sign an engagement letter as a prerequisite to any attorney-client relationship. However, in a recent national legal malpractice conference held by the ABA, industry experts cite faulty or missing engagement letters as the most prolific cause of legal malpractice claims.

May 8, 2014 • Professional Liability Matters, Risk Management

Case Closed! Tips For Properly Closing a File

All professionals should maintain a consistent and carefully considered practice for closing files. Don’t rush to send the file to the shredder. Don’t push the boxes into a dusty warehouse. Rather, best practices mandate that all professionals, notably attorneys, engage in a series of important tasks when closing a file. Poor practices at the end of an assignment can lead to conflicts issues, document retention woes, client confusion or worse. Take for example the attorney in Maryland who was recently disbarred for conduct that could have been prevented with a proper close file checklist.

May 6, 2014 • Ethics, Legal Malpractice, Professional Liability Matters, Technology

Legal Zoom’s Business Model Prompts Ethical Debate

As the legal industry evolves, attorneys and would-be clients continue to experiment with alternatives to the standard law firm model. Some websites offer do-it-yourself standardized legal forms for basic legal needs such as will preparation, lease agreements or corporate formation documents. You’ve probably seen the commercials for Legal Zoom, Nolo, RocketLawyer and others. But, what is actually for sale? Has an attorney drafted these documents? If so, are these attorneys subject to professional malpractice exposure? If not, are these sites engaged in the unauthorized practice of law? These are hot issues in many states. Notably, according to a recent opinion out of South Carolina, Legal Zoom’s practices are consistent with the rules of professional conduct.