Pennsylvania Opens Door to Lawsuits Against Foreign Companies

The Due Process Clause of the Fourteenth Amendment to the US Constitution limits the authority of courts to exercise jurisdiction over non-resident defendants.  Before a court can exercise personal jurisdiction over a party, the Constitution requires that the party have certain “minimum contacts” in the state where the court sits.  Jurisdiction may be satisfied  when the suit arises from the foreign person’s activities in the forum state.  Further, with respect to foreign companies, jurisdiction may be satisfied regardless of the nature of the lawsuit if …

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Secrets Are No Fun, Especially When It Comes To Malpractice Coverage

The risk of a malpractice claim is real. That’s the bad news. But, now that we have your attention, the good news is that insurance is available to defend and indemnify professionals who face malpractice claims. In order to receive coverage, however, professionals generally must disclose whether they are the subject of any potential claims when completing their applications.  If an insurer discovers that a professional had knowledge of a potential claim, but failed to disclose it, it could rely upon the nondisclosure as a …

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A-C Privilege Not Extended to Third Parties

It’s generally known that communications between attorney and client are privileged absent waiver. Often, the client may waive the privilege by sharing an otherwise confidential communication with a third-party. But what if the third-party was engaged by counsel? Parties to a transaction rely on multiple outside professionals to advise on legal and business matters.  In such cases, otherwise confidential communications are sometimes shared by counsel with third-party consultants hired to assist with the matter.  However, the mere fact that a third-party consultant was engaged to …

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Is a Client’s Criminal Prosecution Foreseeable?

Professionals assume a duty of care to their clients.  Accordingly, professionals may be held liable for damages to clients that are proximately caused by their negligent acts.  In many cases, the link between the professional’s negligent act and the client’s injury is clear, such as a missed deadline that waives a client’s rights.  The limits of foreseeability become more difficult to define when the professional’s alleged misconduct triggers independent acts by third parties, such as a government investigation of the client.

In Kumaraperu v. Feldsted

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Pitfalls of Facebook Friendship

Friendship has taken on new meaning in the age of social media.  Old acquaintances, former classmates, co-workers, professional contacts, public figures, family, and close companions may all be similarly situated as a “friend” on social media, regardless of the level of personal interaction with each.  Social media users therefore often apply more liberal standard when accepting new network friends than they would in their personal lives.  Professionals, however, may need to be more cautious.

Recently, the Florida Supreme Court was asked to hear a law …

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Can a Single Lawsuit = Multiple Claims?

Professional liability insurance is necessary to any responsibly-run professional practice. The limits of coverage available under an E&O policy help to protect professionals against financial loss.  However, the limits of coverage between different policies do not necessarily offer the same protection, even if the face value would appear to be same. For instance, a policy may specify that costs of defense are included in the limits of coverage, a/k/a “burning limits,” which reduces the amount available to satisfy a judgment or pay a settlement as …

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PA Supreme Court: Attorneys Still on the Hook

Attorneys are expected to act as zealous advocates for their clients.  As such, attorneys often pursue claims on behalf of their clients even when the legal theory of recovery is unclear or the facts developed in discovery favor a defense verdict.  In some cases, however, attorneys may pursue recovery even where they know that the claims are without merit or the theory of liability is contrary to an established rule of law.  When an action is clearly frivolous, the defendants may be entitled to bring …

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Privilege for Public Relations Team?

In the wake of recent well-publicized public relations nightmares, your friends at PL Matters considered the impact of PR firms on professionals. Public relations are a critical aspect of maintaining status in the public eye, communicating a message to consumers, and helping to promote a positive image. As a result, professionals often rely on outside PR professionals, both for their own business needs and the needs of their clients. But have you considered the implications of disclosing sensitive information to an outside PR firm?…

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Ethics of Law Firm Dissolutions

All good things must come to an end.  Professional firms are no exception. There are many reasons that a professional firm may close its doors; however, regardless of the cause, professionals must remain cognizant of their ethical duties to third-parties and clients throughout the dissolution process.

The DC Bar recently issued an ethics opinion addressing law firm dissolutions to help attorneys navigate the various rules of professional conduct that are implicated when a law firm terminates its existence as a legal entity.   The Bar began …

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IRS Warns CPAs: Beware of Phishing

Businesses are increasingly becoming the targets of sophisticated cyber-attacks, and professionals are no exception.  When cyber-criminals breach a professional service firm, they not only may gain access to the firm’s corporate data, but also confidential information from the firm’s clients.  Therefore, it is incumbent on all professionals to make data security a priority.

In order to combat this threat, the IRS recently issued a warning to accountants and tax preparers about a new phishing scam intended to access professional and client information.  The phishing …

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