Cases for Professional Liability Monthly – May 2013 Edition
Cases provided courtesy of LexisNexis.
LATEST INSIGHTS
Collection Proceedings against Clients Often = Malpractice
Ever hear the cruel joke about a thankless client who achieves a wonderful settlement through her attorney’s legal prowess only to terminate the lawyer before the settlement ink is dry? Well, for some unfortunate attorneys it’s a reality. Attorneys in this pickle face the unenviable decision of whether to initiate a collection action against the former client to collect on unpaid legal bills or to sue under a quantum meruit theory. Reportedly, however, fee disputes are at the heart of a significant percentage of all legal malpractice claims. In other words, you may face a malpractice suit if you have the “nerve” to push your former client for payment. What to do? A recent decision from last week provides good news for attorneys in this conundrum.
Wrongful Death Suit Questions Medical Treatment of Professional Athletes
Derek Boogaard was a professional hockey player known for his fists more than his skill with the puck. His unexpected death in 2011, and the recent lawsuit that followed, renews questions concerning the obligations of the physicians tasked with treating professional athletes. While publicity over this litigation trend is largely focused on the NFL’s safety precautions, this recent suit has ignited a firestorm of questions over the adequacy of medical care provided to all athletes and may open the door to increased liability.
Oh Brother: Financial Advisor Targeted for his Sibling’s Fraud
A financial advisor was recently named in a multi-million dollar malpractice matter in Texas arising from the alleged fraud of his brother. The financial advisor – the managing partner of DEW Wealth Strategies, LLC – allegedly allowed his brother to use the firm’s offices. Innocent enough, right? But according to the complaint, the brother and a company he owned, Gateway Special Opportunities Fund LLC, backed out of providing the plaintiff with millions in funding for a large condominium project in California. The brother ultimately agreed to pay the plaintiff $30 million after conceding he misrepresented the financial position of his company and the plaintiff secured a $30 million judgment. When the plaintiff could not collect on the judgment he found a new target: he is now pursuing fraud and related claims against the financial advisor.
Botched Weather Report Leads to Unusual Insurance Claim
A feud is developing between flower enthusiasts and the Philadelphia media arising from an “overly hyped” weather report. The possible remedy may be in the form of a lesser known insurance product. The Philadelphia Flower Show usually generates about $1 million in profits from its annual exhibit. But not this year. Reportedly, the show drew substantially fewer attendees than expected this year and organizers of the event are blaming a “botched” weather report. Now the event’s president is accusing Philadelphia media outlets of “hyping up” a major snowstorm during the week of the flower show that never materialized but led to scores of cancelled visitors. In turn, this led to about $1 million in losses. Is there insurance for this? You bet.
OJ Simpson’s Bid for Freedom: It’s My Lawyer’s Fault
OJ Simpson’s fall from fame is well documented. The disgraced football running back’s latest legal woes stem from an altercation in a hotel room in which the Juice was allegedly joined by armed men. That story ended with his incarceration. Now, OJ is back in a Las Vegas courtroom with a new team of attorneys and a novel argument: Simpson’s former attorney is to blame for the 2008 conviction. In the latest chapter in OJ’s lengthy legal history, the “Juice” claims that poor legal advice is the sole reason he was incarcerated.
Failure to Disclose Jeopardizes Coverage in Hefty Malpractice Claim
A law firm’s failure to disclose a potential claim on its insurance application may act as a waiver of coverage. Lloyd’s of London recently argued that coverage did not apply to a California based law firm in a multi-million dollar legal malpractice action. According to Lloyd’s, the professional liability insurance policy contained an exclusion for claims the firm knew or reasonably should have known about prior to the effective date of the policy. At the time the law firm procured the policy, an attorney from the insured entered into a tolling agreement extending the statute of limitations on a potential malpractice claim. This pre-claim was not disclosed on the insurance application. That spells trouble.
Arrests Follow Massive, International Cyber-Heist
Recent arrests followed one of the more complex cyber attacks in history. $45 million was reportedly stolen in the blink of an eye but it may take years to comb through the unprecedented cyber-liability issues. Two major banks are now evaluating novel liability issues and presumably deciding whether to lodge a series of lawsuits with major implications on the landscape of cyber-liability.
Attorney Sued for Wrongful Death
One of the foundations of the attorney-client relationship is confidentiality. Apart from limited exceptions, attorneys are generally precluded from disclosing a client’s confidential information to a third-party and must act at all times in the client’s best interest. It is well established that failure to do so may constitute an ethical violation and perhaps professional misconduct. A recent $40 million lawsuit claims that an attorney’s breach of his client’s confidences led to the client’s murder. Uh oh.
Golfer Tees-Up Professional Malpractice Lawsuit
A professional golfer – with a famous ex-fiance – recently filed a professional malpractice claim against his former accountant for allegedly concealing unpaid taxes in excess of $500,000. Hank Kuehne is an amateur champion who last played in a major tournament at the 2012 Honda Classic, but is perhaps best known for his prior engagement to tennis great Venus Williams. Reportedly, Kuehne had no idea of his mounting tax liability until he fired his advisor and retained a new accountant to manage his portfolio. A classic example of poor communication leading to malpractice.