Professional Liability Matters

LATEST INSIGHTS

September 17, 2013 • Employment Practices Liability, Professional Liability Matters

Good At-Will Hunting: At-Will Employment Put to the Test

While most countries allow employers to dismiss employees only for cause, employment relationships are presumed to be “at-will” in all U.S. states except Montana. As a result, most employers are well aware that employment relationships in the States may be terminated at any time, for any legal reason. But, the at-will presumption is a default rule that can me modified by contract whereby the employee may hold a reasonable expectation of continued employment. The modification of employment terms by way of contract was recently put to the test in New York. Victory for the employer.

September 12, 2013 • Legal Malpractice, Professional Liability Matters, Risk Management

Law Firm Denied Coverage Due to “Fraud Exclusion”

Most professionals are governed by this universal rule: always act in the best interests of the client. But, there is an unspoken footnote to that rule: unless the client engages in unethical, illegal or otherwise improper conduct. Make no mistake, when a professional cooperates in the client’s foul play, she is also exposed to liability and perhaps a denial of coverage due to a fraud exclusion existing in many professional malpractice policies. This limitation became a reality for a Colorado law firm accused of assisting its clients in the commission of fraud.

September 10, 2013 • Agents and Brokers, Professional Liability Matters

Cleveland Indians Sue Insurance Broker following Wrongful Death Claim

It is generally understood that an insurance broker may be held liable for failing to obtain requisite insurance for the insured. But, there is plenty of room for debate when the broker fails to obtain coverage for a third-party; i.e. an additional insured. This issue was put to the test by the Cleveland Indians following the death of one of its patrons attending pre-game activities. According to the Sixth Circuit, the team stated a valid claim.

September 9, 2013 • Ethics, Legal Malpractice, Professional Liability Matters

Dealing with the Problem Client

We’ve all been there. Inevitably, every professional encounters a client whose demeanor or attitude make the representation difficult. As a result, the professional may be tempted to ignore the situation and limit contact with these clients. But, that would be a mistake. Pursuant to a recent ethics ruling in Matter of Azar, DRB 13-041, the New Jersey Disciplinary Review Board determined that providing the cold shoulder to problem clients warranted disciplinary action.

September 6, 2013 • Professional Liability Matters, Risk Management

Pleading the Fifth in the Civil Context

Dropping the nickel, a/k/a pleading the Fifth Amendment is most often referenced on TV dramas in a criminal setting. Most civil practitioners do not encounter the Fifth and therefore may be unfamiliar with its role in civil litigation. However, since the line between civil and criminal liability is not entirely clear in some scenarios impacting professionals, there may be situations when the Fifth is appropriate, albeit risky.

September 4, 2013 • Employment Practices Liability, Professional Liability Matters

Fantasy Sports in the Workplace

Football season kicks off Thursday, September 5. As a result, millions of otherwise well-respected and seemingly professional Americans turn their attention to a grown-up version of make believe; a/k/a fantasy sports. Over 25 million Americans now belong to at least one fantasy football league and fantasy sports represent a multibillion dollar industry. Surveys suggest that many of those fantasy football participants access their league at the workplace, on equipment provided by employers. Most employers are cognizant of the importance of maintaining up-to-date computer use policies, social media protocols and other important workplace regulations, yet they inexplicably miss regulating participation in fantasy sports.

September 3, 2013 • Accountants, Legal Malpractice, Professional Liability Matters

Responding to Legal Audit Letters = Risk Management Headache

As many of you probably know, auditing standards require that an auditor confer with the attorneys for the audited entity about certain types of loss contingencies, such as pending litigation and unasserted claims. During this process, the audited entity/client asks that its attorneys respond to the “legal audit letter.” Some attorneys may view this procedure as cumbersome and perhaps even annoying, but it is a required element of the auditing process and must be taken seriously. This is especially so because the attorney’s response to the legal audit letter presents risk management problems particularly with respect to the potential waiver of the attorney-client privilege.

August 22, 2013 • Professional Liability Matters, Risk Management, Settlement

When a Settlement Unhinges: Failure to Document a Mediated Agreement

Mediation is intended to facilitate the expeditious resolution of disputes. Often, mediation offers the ideal setting to promote productive conversation and settlement discussions. Skilled mediators know the right buttons to press, highlight strengths and weaknesses, and allow the parties an opportunity to “be heard,” all of which can go a long way toward settling a dispute. But, mediation does not always go as intended particularly when the terms of a proposed agreement are not documented.