The Power of the Conflict of Interest Waiver

A vast majority of professional malpractice matters arise from an alleged conflict of interest.  Legal malpractice claims, for example, most frequently involve conflicts of interest; a whopping 46% according to a recent study. Perhaps this is no surprise. According to one scholar, the “exercise of his independent professional judgment” goes to the “heart of the skills” which a professional offers to his client. Thus, lawsuits typically follow in the event of a breach – or perceived breach – of that independence. Of course, …

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The Insurance “Conspiracy” Facing A-Rod and the Yankees

Alex Rodriguez is widely considered one of the greatest baseball players of his generation, but much of his career is filled with controversy. The most recent debate concerns A-Rod’s receipt of a hefty salary from the Yankees although he has not played a single game this year. Reportedly, the 12-time All Star is now grumbling that the Yankees are intent on keeping him off of the field so as to trigger insurance dollars. In December 2007, Rodriguez and the Yankees agreed to a 10-year, $275 …

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A Disclaimer of Disclaimers – Limits on Limitation of Liability

Many classes of professionals utilize engagement letters with limitation of liability language.  For example, accountants, real estate agents and home inspectors often include in their engagements a hold harmless or other clause with the goal of limiting potential damages.  Such a clause will establish the extent of exposure, if any, that the professional can be held liable for should problems arise with the engagement.  The question of whether the clause is enforceable is state specific and somewhat unpredictable.

A recent South Carolina decision provides …

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Who Really Owns a CPA’s Working Papers?

Accountants are well aware that clients, former clients, and others periodically request (or sometimes demand) copies of the accountant’s work-papers.  The question invariably is: who owns those materials?  Moreover, what is the accountant obligated to turn over and what categories of materials may be withheld?  An accountant, and those that represent them, must be aware of the critical legal and regulatory issues facing the accounting profession when handling such a request.

“As many Certified Public Accountants and Public Accountants have come to know in their …

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