Cases for Professional Liability Monthly – June 2013 Edition
Cases provided courtesy of LexisNexis.
LATEST INSIGHTS
Attorneys on the Move Leads to More Malpractice Claims
Legal malpractice claims are on the rise…again. According to a recent study, lateral transitions by attorneys may be to blame. Professionally Liability Matters previously discussed an uptick in malpractice claims, particularly those stemming from attorneys handling real estate matters. However, a new survey released last week by Ames & Gough demonstrated an overall increase in legal malpractice claims and suggested that swapping firms is a main culprit.
Professionals Beware: Unpaid Internships May Prove Costly for Employers
With summer break in effect, many students are utilizing the time off from school to participate in internships. Internships provide students with an opportunity to gain work experience in a particular field and, arguably, make them more marketable upon graduation. However, these intangible benefits may not excuse an employer from failing to pay interns under state and federal labor laws.
Hell’s Kitchen: Star Chef Sued for Wage & Hour Violations
On Thursday, June 13, 2013, a proposed class action was filed on behalf of all former and current employees of Chef Gordon Ramsey’s Los Angeles restaurant “The Fat Cow.” The class action is led by a former server, barista, and two hostesses who are taking their beef to California state court against the celebrity chef’s restaurant. The class action alleges that the restaurant’s management took tips from former employees, and violated a series of other wage-and-hour labor codes. The Fat Cow opened its doors on October 1st, 2012, and is already catching steam over improper managerial practices.
Non-Profits at Risk: Unprepared and Underinsured
A recent study suggests that the non-profit sector is generally underinsured and unprepared for liability risks. In its Nonprofit Risk Survey, available here an international risk advisor concluded that nonprofits are not allocating enough dollars to properly protect against risk. Far too many non-profits have not completed an independent risk assessment meaning that they are unaware of their vulnerabilities. Since many non-profits surveyed are purchasing the bare minimum coverage, this is a recipe for disaster.
The “Loss of Chance” Debate Continues
A recent decision provides hope for supporters of the “loss of chance” doctrine and further fuels the debate. Pursuant to this controversial doctrine, which has now been adopted in 23 states, a plaintiff may recover damages from a defendant due to a heightened risk of injury, even if the plaintiff cannot prove causation. The Minnesota Supreme Court recently joined those courts embracing the doctrine in the medical malpractice context. In its recent decision, the court permitted the parents of a seven-year-old girl afflicted by a rare form of cancer to pursue a medical malpractice recovery even though they could not prove that the defendant caused her condition. The suit has reignited an intense debate and has generated national attention.
Breach of Contract or Negligence: Does it Really Matter?
The Pennsylvania Supreme Court is set to entertain argument on an important appellate issue regarding the types of damages available to a plaintiff in a legal malpractice dispute. The decision may also highlight the fundamental differences, if any, between a malpractice suit grounded in tort or contract. In 2006, a national law firm agreed to represent the plaintiffs in the sale of a company that had incurred over $2 million in unpaid taxes. According to the plaintiffs, the law firm advised them that the sale would terminate their personal liability for the unpaid taxes. When the company’s assets withered after the transaction, however, the individuals that sold the company were held personally liable for all unpaid taxes and they turned to their former lawyers to recover.
Legal Implications of Philadelphia’s Deadly Building Collapse
On June 5 two Philadelphia buildings collapsed, killing 6 and injuring at least 13 others. Contractors were in the process of demolishing an empty building when a four-story wall unexpectedly tumbled into the neighboring Salvation Army thrift store leaving a pile of debris and a cloud of smoke. Philadelphians, and beyond, are searching for answers and debating over who is to blame.
Anatomy of a Ponzi Scheme in a Post-Madoff World
The Ponzi scheme expired with the arrest of Bernie Madoff, right? Absolutely not. Ponzi schemes are alive and well. Many of these scams are reported but presumably many go unnoticed as criminals target the unsuspecting of millions. Apparently, Madoff’s 2008 arrest did little to dissuade others from engaging in similar crimes, although on a lesser scale. According to the SEC, which compiles Ponzi scheme data, these crimes continue at a disheartening rate.
Facebook Post Lands Attorney in Hot Water
Fact: most professionals use social media in one form or another. Fact: Professional Liability Matters has previously warned of the various risks associated with LinkedIn, Facebook, and other online communications. Nonetheless, we continue to encounter seemingly countless reminders of missteps by professionals through presumably well-intentioned social media use. Recently, a Facebook post from a New York based attorney resulted in a fight over sanctions.