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Professional Liability Matters

Legal Developments and Risk Management Tips Impacting the Professional Liability Community.

LATEST INSIGHTS

• Cyber-Liability, Professional Liability Matters

Cyber-liability: An International Problem

Legislation was recently introduced in the Australian parliament that would require companies to publicly disclose data security breaches. The legislation is intended to protect the public by ensuring they are promptly notified if their personal data is compromised. Under the proposed legislation, an administrative agency in Australia would be empowered to levy fines of up to $1.7 million on companies that fail to comply with the disclosure requirements. Clearly, cyber-liability is an international problem.

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• Engagement Letters, Professional Liability Matters

The Break-Up: Knowing When the Professional Relationship is Over

All good things must come to an end…and most bad things too. The same must be true with a professional’s engagement. Professional Liability Matters has previously warned of the importance of clear engagement letters to set reasonable expectations regarding the scope of the relationship. But many professionals may take for granted the importance of clarifying when that relationship has come to an end. This is a key risk-management pointer to avoid malpractice.

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• Ethics, Professional Liability Matters, Risk Management

Alleged Conflict of Interest Leads to Malpractice Suit

A prestigious and well regarded Philadelphia based law firm was recently named in a multi-million dollar malpractice lawsuit arising from an alleged conflict of interest. The plaintiff alleges that the firm’s relationship with her ex-husband’s employer resulted in a less than favorable outcome in her divorce proceedings. In 2009, the plaintiff wife retained the law firm’s matrimonial group to represent her in divorcing her husband who held a high position at Morgan Stanley. While the divorce case was proceeding, the law firm was retained by Morgan Stanley to represent it in an unrelated transactional matter. According to the malpractice complaint, this potential conflict of interest of simultaneously representing the wife and her husband’s employer was never disclosed and allegedly negatively influenced the manner in which the law firm handled the matrimonial case.

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• Professional Liability Matters, Risk Management

Insurers’ Communications Protected by Attorney-Client Privilege

A recent decision provides insight on the application of the attorney-client privilege to communications between an insurance professional, who was also an attorney, and the insured. Generally, all claims are assigned to an insurance professional to monitor and, if applicable, to strategize with insurance-appointed counsel. It is widely accepted that communications between defense counsel, the insurer, and the insured are protected by the attorney-client privilege pursuant to the so-called tripartite relationship. However, there is no privilege that applies to communications only between insurer and insured. The plot thickens, however, when the insurance professional is also an attorney.

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• Legal Malpractice, Professional Liability Matters, Risk Management

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.

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• Medical Malpractice, Professional Liability Matters

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.

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• General, Professional Liability Matters

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.

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