Michael P. Luongo, Author at Professional Liability Matters

January 14, 2016 Defenses / Medical Malpractice

Professional Liability to Strangers

Professionals owe their clients a duty to exercise the care, diligence, and skill expected of others in their profession in similar circumstances. Generally, the professional-client relationship defines the scope of this duty of care. However, in certain circumstances, the professional’s duty may extend to third parties, even complete strangers to the professional relationship. This is where things get tricky.

The New York Court of Appeals recently decided one such case in Davis v. S. Nassau Communities Hospital. In that case, a patient was treated …

December 18, 2015 Employment Practices Liability / Law Practice Management

Professional Liability for Employee Misconduct

Professionals are often entrusted with access to personal and financial information from their clients. Professionals take great care to ensure that they protect this information from disclosure and that they comply with ethical guidelines regarding proper use of client funds. However, even when professionals fully comply with the rules, there may be occasions where employees or other individuals who have access to the information through their professional employer use it for an improper purpose. While professionals cannot always prevent employee misconduct, the actions they take …

December 15, 2015 Employment Practices Liability

Liability for Improper Use of Database

Many professionals have access to online databases that store information not readily available to members of the public. These databases are a valuable tool for professionals who need additional information about a person for litigation purposes or for other lawful use within the course and scope of their professional practice. While these databases are only intended to be used for professional use, it is generally possible to access them for non-work-related purposes. This improper use of otherwise legitimate databases raises potential civil and criminal repercussions …

December 8, 2015 Design Professionals (A&E)

Avoiding Individual Liability for Corporate Acts

Incorporating a professional practice can help to avoid individual liability when a professional is acting within the course and scope of his employment. For instance, certain states provide statutory immunity to design professionals such as architects and engineers who are acting in a corporate capacity. However, individual immunity from claims may be waived if the professional makes a representation, even inadvertently, in contracts or design plans that could be construed as accepting individual accountability for negligent acts.

A recent case from Louisiana highlights the potential …

October 27, 2015 Coverage

Coverage Denied for Failing to Report

Obtaining malpractice insurance is an essential component of risk management for professionals. But, the obligations continue beyond the purchase. Like any contract, both sides are bound to comply with the contractual terms: the insurer and the insured. Accordingly, professionals must take the time to familiarize themselves with the scope of policy coverage and specific policy exclusions. Failure to fulfill the requirements of a policy provision could mean the loss of coverage and individual exposure.

The Indiana Court of Appeals recently issued an opinion addressing the …

October 23, 2015 Legal Malpractice

High Times: Ethics of Marijuana Advice

Marijuana laws in the US are rapidly changing. Colorado, Oregon, and Washington have legalized marijuana outright for recreational use. Twenty more states and the District of Columbia have legalized the use of marijuana for medicinal purposes. Now, the Pennsylvania legislature has proposed a new law that would permit limited medical marijuana use. Despite these changes at the state level, marijuana is still classified under federal law as a Schedule I drug that has no accepted medical use. Inconsistencies between state and federal laws create potential …

October 13, 2015 Medical Malpractice / Risk Management

Communication Breakdown = PL Claim

Communication is key. Defining clear objectives, limiting unreasonable expectations, and keeping the client reasonably informed of any developments in the matter at hand all go a long way to maintaining client satisfaction. However, not all professionals prioritize these relatively simple measures for successful representation. According to a recent study investigating malpractice claims against medical professionals, poor communication is a major contributor to liability actions. The study analyzed over 1800 lawsuits against doctors arising between 2007 and 2014, with a focus on the specific elements that …

October 2, 2015 Cyber-Liability

Recent Survey: You’re Not Cyber Ready

Cyber liability claims are on the rise. Recent breaches against Home Depot, Target and Walmart have grabbed media attention. However, it is not only large retailers who are targets for attack. In fact, the majority of attacks are directed to small businesses. According to a recent study, the average total insurance claim for cyber breaches against small companies is over $600,000 and the average for larger companies is close to $5 million. Are you prepared?

Despite this growing threat, many businesses and professional firms …

September 30, 2015 Technology

Ethics on the Cloud

Recent developments in cloud-based computing have enabled professionals to perform an increasing amount of work remotely. Because professionals are no longer tied to the office, they are able to work more efficiently and better serve their clients. However, the use of third-party technology companies to store confidential client data raises several ethics concerns regarding the professional-client relationship.

The Tennessee Board of Professional Responsibility issued a formal ethics opinion earlier this month that addresses the ethical concerns of cloud-based computing. Cloud computing allows individuals to store …