Risk Management Archives - Page 6 of 13 - Professional Liability Matters

August 7, 2014 Risk Management

Overzealous Advocacy Leads to Sanctions

Attorneys have an obligation to provide zealous advocacy on behalf of their clients and to pursue a client’s interests within the bounds of the law. To this end, lawyers are expected to protect clients during discovery by properly counseling them in anticipation of depositions and objecting to requests that are truly improper without crossing the line. However, overzealous advocacy, which obstructs legitimate discovery requests, may draw judicial ire and potentially lead to disciplinary action. Consider the following example.

Sanctions were recently imposed by an Iowa …

August 6, 2014 Risk Management

Dropping the Problem Client

Professionals and their clients do not always see eye to eye. Whether there are disagreements over litigation strategy, conflicts in personality, or a client who refuses to pay, many professionals encounter a problem client at some time in their career. While professionals may be tempted to cut ties with these clients when the relationship turns sour, an ugly break-up can make matters worse and may invite a malpractice suit.

Professionals should consider several factors before deciding to end the relationship. Take the time to assess …

August 5, 2014 Legal Malpractice / Risk Management

Attorneys: You’re not Fortune-Tellers

Attorneys can’t predict the future. Even the most experienced of us cannot provide assurances about the outcome of our client’s claims and defenses. Sure, we’ll provide some suggestions and list the possibilities but it is the attorney who sets unreasonable expectations that may end up in trouble. Just ask the attorneys in Dallas who fell victim to a malpractice claim for allegedly over-promising a particular result to their former client.

In Doores v. Crutcher, a plaintiff claims that his former attorneys billed $400,000 in …

July 24, 2014 Legal Malpractice / Risk Management

Unpunished Good Deeds: Pro Bono Considerations

Pro bono work is an important, and often fulfilling, aspect of an attorney’s practice. For those in financial hardship, the pro bono attorney may spell the difference between hope and disaster. However, some attorneys may hesitate to take on a pro bono assignment because they are wary of the potential for malpractice exposure. Indeed, one report found about half of all attorneys surveyed identified lack of malpractice coverage as a factor discouraging participation. This and other concerns are warranted. While pro bono work is to …

June 18, 2014 Risk Management / Technology

Does Bitcoin Make Cents? Evaluating New Payment Options For Your Firm

Recently, a New York law firm made news when it announced that it would begin accepting Bitcoin as payment. The firm will partner with a Bitcoin payment processing company who will host the firm’s payment system and assist the firm in converting digital currency payments into fiat currency. Other professionals are taking notice, and are permitting clients to pay for legal services using Bitcoin. Should you?

Bitcoin is a decentralized digital currency based on a mathematical algorithm. Bitcoin can be bought or sold online, and …

June 12, 2014 Ethics / Risk Management

C.E.Oh No. Titles Firms Should Avoid

Attorneys, architects, accountants, engineers, insurance brokers and agents are all business-persons. Some of these professionals balance their professional obligations on the one hand with business obligations on the other. Pay bills, manage staff, execute leases, develop operational strategy. For some professionals overwhelmed by the business side of running a professional organization, an option is to rely upon laypersons for help. Indeed, it is not uncommon for firms to hire individuals to head up operations, some who may be designated with prestigious titles: CEO or COO. …

June 9, 2014 Employment Practices Liability / Risk Management

High Times: Marijuana in Today’s Workplace

America’s evolving perception of marijuana use is impacting the office setting. While the use of marijuana in the US is illegal under federal law, a state may pass laws permitting recreational or medical use so long as it maintains a proper regulatory system. Does this present a conflict amongst the courts and a headache for employers? You bet. Today, twenty-one states and DC permit the use of medical marijuana, and four more states have medical marijuana legislation pending. Given these developments and others on …

May 21, 2014 Employment Practices Liability / Risk Management

Avoiding Legal Costs of Unpaid Internships

Summer is almost here – the sun, vacations, Coronas, and lawsuits arising from unpaid internships. We’ve previously warned of these risks here and here. Yet, the suits that some call the “new slip and fall case” are more frequent than ever. It seems that every week brings news of another lawsuit filed by unpaid interns. So, another reminder is warranted. Employers must beware of these risks and take precaution to ensure that they are not the next victim of an FLSA class-action claim.

Recently, …

May 14, 2014 Legal Malpractice / Risk Management

The “Settle and Sue” Method

They say that a truly good settlement is one that leaves everyone unhappy. There is plenty of truth here. But some settling parties take their unhappiness to a new level by filing a malpractice claim. Whether it be buyer’s remorse, doubt, or the opportunity to reconsider the settlement without the distraction of active litigation, some settling parties determine that they took too little or gave too much away. This may be a part of the uncertainty of compromise and often dissipates over time without …

May 8, 2014 Risk Management

Case Closed! Tips For Properly Closing a File

All professionals should maintain a consistent and carefully considered practice for closing files. Don’t rush to send the file to the shredder. Don’t push the boxes into a dusty warehouse. Rather, best practices mandate that all professionals, notably attorneys, engage in a series of important tasks when closing a file. Poor practices at the end of an assignment can lead to conflicts issues, document retention woes, client confusion or worse. Take for example the attorney in Maryland who was recently disbarred for conduct that could …