Professional Liability Matters

LATEST INSIGHTS

February 12, 2014 • Legal Malpractice, Professional Liability Matters, Technology

Inadvertent E-Discovery Disclosure Leads to Sanctions

Document production is often an arduous task made more so by e-discovery requirements. Electronically stored data results in exponentially more complicated, time-consuming and expensive discovery. Many law firms have protocols to efficiently handle e-discovery or they work with a vendor to lend a hand. However, recent decisions suggest that courts have heightened expectations and are less likely to overlook mistakes by firms who handle sensitive data. A recent decision out of California serves as a reminder that failure to follow reasonable e-discovery standards may result in sanctions.

February 6, 2014 • Employment Practices Liability, Professional Liability Matters

Illegal Formation? Raiders Cheerleaders Allege Wage & Hour Violations

A recent class action suit filed by two Oakland Raiders cheerleaders alleges that the NFL team violated labor laws, including paying less than minimum wage and illegally requiring them to pay expenses out of their per-game salaries. Add this to the fairly lengthy list of off-season concerns facing one of last season’s worst teams in football.

January 30, 2014 • Employment Practices Liability, Professional Liability Matters

Good Samaritan or Workplace Liability?

What to do? Your colleague begins to choke on his sandwich at lunch. The courier trips on loose carpet in your office lobby. Your co-worker goes into anaphylactic shock. What to do? Good Samaritan laws are designed to indemnify individuals who provide reasonable assistance to others in a time of emergency. The laws are intended to encourage assistance without fear of legal repercussion for unintentional injury or wrongful death. These laws have an interesting role in the office setting.

January 28, 2014 • Engagement Letters, Professional Liability Matters

Out of State Advice Leads to Out of State Liability

Professionals may be exposed to liability outside of their “home” state. For those professionals that provide interstate advice, they may be subject to the jurisdiction and laws of any state in which they practice. Take for example the recent legal malpractice case in which a Connecticut law firm was dragged into a lawsuit in Arizona because of allegedly negligent tax advice. Sure, the first rule is to avoid a lawsuit. But, a close second rule is to implement procedures such that the professional is in a better position to defend the inevitable lawsuit. A forum selection and choice of law clause may be the key.

January 22, 2014 • Legal Malpractice, Professional Liability Matters, Risk Management

Promptly Disclose…Don’t Promptly Confess

Professional Liability Matters would have little to discuss if professionals were perfect. Needless to say, we are not. Often, it is how the professional responds to the inevitable error that can mean the difference between soon forgotten mistake and malpractice. Upon the discovery of an error, some professionals are confronted with a difficult conflict: their interest in confronting the error and discussing it with the client on the one hand, without making an admission that could jeopardize insurance coverage on the other. This conundrum places the professional in a very difficult position.

January 16, 2014 • Legal Malpractice, Professional Liability Matters

The Limits of Limited Scope Representation

Courts are facing an unprecedented number of pro se litigants. Whether due to the economy, a changing attitude over litigation, technology, or other causes, courts flooded with pro se litigants have struggled to come up with a solution. In certain practice areas such as family law and property cases a high percentage of all suits involve at least one unrepresented party. This places an administrative stress on the courts. Some jurisdictions are experimenting with a potential answer to the “pro se problem” through the use of limited scope representation or “unbundled” legal services. The idea is to reduce the costs of representation and increase access to the courts. This is appealing to an overburdened court but poses some significant ethical issues for attorneys.

January 15, 2014 • Professional Liability Matters, Risk Management

Managing Client Expectations – A Must for Professionals

Managing client expectations is a critical risk management skill necessary to ensure a healthy professional relationship. Every communication provides an opportunity to revisit and redefine expectations. A professional who sets and fails to deliver upon lofty expectations is in an uncomfortable and potentially litigious situation. There are several tools available to the professional to help curb expectations and limit the damage when (inevitably) the result doesn’t go as planned.

January 14, 2014 • Engagement Letters, Legal Malpractice, Professional Liability Matters, Risk Management

First Circuit Enforces Arbitration Clause in LPL Suit

Professional Liability Matters has previously advocated the benefits of a well-drafted mediation or arbitration agreement in the professional engagement letter. The judicious application of alternative dispute resolution can help to mitigate costs, expedite conflict, and preserve business relationships. Although an ADR provision can lead to efficient resolution of the substance of a professional liability suit, invoking the provision itself can sometimes lead to contentious litigation in its own right.