Michael P. Luongo, Author at Professional Liability Matters

January 2, 2014 Cyber-Liability

Cybercrime Strikes Target Corp

Target Corporation, the nation’s number two general retailer (after Wal-Mart), was recently the center of a cybercrime attack that may have compromised as many as 40 million credit and debit card accounts. Target revealed that a third-party had breached its security safeguards during the height of the holiday shopping season and gained access to private customer data, including shoppers’ names, credit card numbers, expiration dates, and three-digit security codes. This highly publicized debacle highlights the risks of cyber exposure.

Target’s large scale data breach is …

December 11, 2013 Employment Practices Liability

Third-Party Harassment Could Lead To Employer Liability

Most employers understand the significant consequences of sexual harassment at the workplace and take proactive measures to train employees about proper conduct. However, liability is not limited to the conduct of employees. Employers also have a responsibility to prevent sexual harassment by third parties such as clients, vendors, patients, and customers, when the employer knows about the conduct and fails to take any corrective action. Although third-party harassment is reportedly just as common, many employers do not take appropriate steps to prevent it.…

November 21, 2013 Risk Management

When Does a Professional Liability “Claim” Arise?

Professional liability insurance policies cover professionals for claims arising within the agreed upon policy period. At first blush this appears to be a relatively simple concept but there is plenty of room for confusion which can result in a lack of coverage. What is a claim? The fact that a lawsuit was filed within a policy period does not necessarily mean that the “claim” giving rise to the lawsuit is covered under a PL policy. A perfect example of this issue was presented to the …

November 15, 2013 Risk Management

Leave ‘Em at Home: Don’t Bring Anything to a Depo

Have you ever considered the consequences of a witness bringing her mobile phone to a deposition? May a deposing attorney ask a witness to retrieve information stored on a hand-held device during a deposition? Many lawyers may fail to anticipate the consequences of a witness bringing documents or other materials to a deposition and may overlook this issue when preparing the client. This lack of foresight can lead to unintended discovery disclosures.

Take, for instance, a witness who pulls out a document when questioned and …

November 7, 2013 Employment Practices Liability

Calculating FMLA Leave: What Employers Need to Know

The Family Medical and Leave Act (FMLA) provides job security to employees who require time away from work due to illness or the need to care for family. By some accounts, the FMLA is one of the most difficult employment laws for an employer to administer and therefore is a risk management “legal labyrinth.” In particular, the seemingly simple task of calculating the duration of FMLA leave can be daunting.

Under the FMLA an “eligible” employee may take up to 12 weeks of leave …

October 31, 2013 Ethics / Legal Malpractice

Who’s the Boss: Attorney or Client?

Communication is a key to a healthy attorney-client relationship. Client input is critical for the attorney to develop an understanding of the underlying events and the client’s goals. However, when it comes to litigation strategy, the attorney must tread carefully when the client disagrees with the suggested approach. In this scenario, who’s the boss? By one account, the “scope of representation” is one of the “thorniest issues involved in legal practice” yet it is widely misunderstood. Often, the attorney who understands the ethical principles …

October 18, 2013 Ethics / Legal Malpractice

Exposure to Disciplinary Action Away From Home

In most circumstances an attorney may only practice law in jurisdictions where she is licensed. Practicing law in a foreign jurisdiction may expose the professional to prosecution for the unauthorized practice of law. The Ohio Supreme Court recently considered whether an attorney who is not licensed to practice in the jurisdiction is subject to the forum state’s disciplinary authority in Disciplinary Counsel v. Harris, 2013-Ohio-4026 (Ohio Sept. 26, 2013).

In Harris, the defendant attorney was a member of the DC bar. Although he …

October 10, 2013 Insurance Products / Legal Malpractice

Eroding Policy Limits Spur Litigation

Professional liability insurance policies each contain limits of liability that set the upper threshold that the insurer will fund. However, a policy’s stated limit does not necessarily correlate to the amount that will be available to resolve a claim. Instead, many policies provide that the costs of defense are included within the coverage limit—every dollar spent on defense correspondingly erodes the amount available to resolve the claim. These so-called eroding limits, or defense-within-limits policies become particularly important in heavily litigated cases, where high defense …

October 8, 2013 Insurance Products / Settlement

Stop; Hammer (Clause) Time

Litigation is big business with big dollar signs. As a result of the large awards that can result from malpractice suits, many professionals, their attorneys, and insurers are interested in early settlement discussions. When considering settlement, the defense team must balance “right and wrong,” pride, defense costs, and other complicated factors that are difficult to quantify. For the professional, the decision may be more about reputation and morals than budgets. As a result, insureds may not always want to follow their insurer’s inclination to settle. …

September 27, 2013 Ethics

Arbitrator’s Conflict Voids Arbitration Award

We previously warned of the risk that settlements purportedly achieved at mediation may unhinge due to the failure to document the settlement terms. Along those lines, a recent decision highlights the effect of an arbitrator’s failure to disclose his connection to a party. Many attorneys are chosen as an arbitrator due to their reputation in the community or personal/business relationships. Accordingly, there may be some heightened risks of potential conflicts, as seen here.

That problem came to a head in Mt. Holyoke Homes, L.P. v. …