Lindsay Lohan’s Legal Lesson

Last week Lindsay Lohan provided a valuable lesson for the professional liability community. It’s true. The lesson arises from Lohan’s recently dismissed lawsuit against rapper Pitbull. Adding insult to injury, the court tossed the suit and sanctioned Lohan’s lawyer for improperly submitting a brief that contained plagiarized, “cut-and-paste” content. You can’t make this stuff up.
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Yeah, But I Didn’t Read My Insurance Policy…

A recent decision confirms that failure to read the fine print is not a valid defense. The Mississippi Supreme Court recently ruled that the owner of two nursing homes was required to pay a $1.25 million deductible despite claiming it was unaware of the high deductible. The insurance policy issued by Lloyd’s of London contained a $250,000 per-claim deductible. Since the nursing homes were named in five separate professional liability suits, and each of which was considered a separate "claim," the policyholder was forced to pay a $1.25 million deductible.
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When Negligence = Murder: Building Defects Result in Manslaughter Charges

An architect faces criminal manslaughter charges arising from the death of an LA firefighter who died attempting to control a blaze that engulfed the defendant architect’s multi-million dollar home. This case raises an unprecedented issue: Can defective design lead to criminal liability? Apparently, the answer is “yes” if the defect is the result of gross negligence.
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Clients of a Certain Age: Particular Issues when Representing the Elderly

A recent South Dakota Supreme Court decision serves as a reminder of some of the ethical issues and pitfalls when representing an elderly client. Unlike some of our posts which apply to a particular specialty, the potential for hiccups arising from representing the elderly impacts all professionals: accountants and attorneys, real estate professionals, brokers of all sorts, to name a few. The lesson is often the same: be particularly wary when representing an elderly client to avoid a potential malpractice suit or ethical problem.
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An Unsavory Brew: Yuengling Sued for $6.6 Million in Back Taxes

With tax season upon us, tax professionals may cringe at another example of the potential for malpractice arising from questionable tax advice. However, America’s Oldest Brewery is in the midst of a very public dispute with the City of Brotherly Love regarding allegedly unpaid taxes. The City of Philadelphia recently sued Yuengling in an attempt to recover $6.6 million in back taxes, interest, and penalties allegedly owed to the City. Although Yuengling is located outside of Philadelphia, the City contends that the brewery failed to pay a tax imposed on entities that regularly conduct business in the City. Yuengling has vowed to vigorously defend itself in this lawsuit.
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ABA says Attorney-to-In-House Attorney Consultation should be Privileged

In a recently published amicus opinion, the ABA took a stand for its position that the attorney-client privilege should protect from disclosure communications between an attorney and her in-house counsel, even if the two attorneys are colleagues. In most scenarios, inter-office communications are discoverable. Privilege may not apply when attorneys consult amongst themselves. On the other end of the spectrum, consultation between client and outside counsel is usually protected from disclosure. However, the ABA’s recent amicus opinion focuses on the narrow situation when an attorney consults with a member of her firm’s designated in-house counsel. Read on for the ABA’s argument.
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Thou Shalt Timely Report All Claims

A recent decision before the Nevada Supreme Court highlights the importance of timely reporting all claims. The issue: is a carrier’s “constructive notice” of a potential claim sufficient to trigger coverage? Lesson: all professionals must have a firm grasp of the reporting requirements under their professional malpractice policy or risk denial of coverage. The Nevada Supreme Court’s decision in Physicians Insurance Co. v. Williams raises the all-important question: must all professionals, even pill-poppers and cocaine abusers, provide their insurance representative with timely notice of a claim? This decision also clarifies that the reporting requirement is not excused even if the insurer had independently learned of a potential claim.
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Why Avoiding the ‘Fiscal Cliff’ May Have Caused Increased Risks to CPAs

We avoided the fiscal cliff. That is old news and, for most Americans, it is also good news. But, the developing fallout and the impact of Congresses’ eleventh-hour solution has particular implications on accountants gearing up for tax season. On January 2, 2013 Congress enacted the American Taxpayer Relief Act of 2012; a fiscal cliff tax package whopper which effectively changed the rule-book. At a time of year when accountants across the country are typically saying "so long" to their families to prepare for the hibernation that is tax-season, this year’s crop of tax-preparers is stuck in its tracks waiting for the IRS to issue updated software. From a professional liability and risk management standpoint, this is troublesome.
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Professional Liability Monthly – January Edition is Now Available

For a free copy of this month’s edition of Professional Liability Monthly, click here. To be added to our circulation list, where you will receive this publication for free each month via email, please contact Brian Biggie at [email protected]
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Cases for Professional Liability Monthly – January 2013 Edition

Cases provided courtesy of LexisNexis.
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