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 …
Continue ReadingAuthor: Seth L. Laver
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.
Bailey …
Continue ReadingAn 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 …
Continue ReadingThou 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 …
Continue ReadingWhy 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 …
Continue ReadingThe Importance of Record Retention
All professionals must maintain and follow a clearly documented record retention policy. These policies are more stringent and regulated for some professions. Each of the 50 states maintain regulations governing work-paper ownership and record retention for accountants, for example. Attorneys, too, may be guided by fairly specific record retention policies pursuant to the applicable Rules of Professional Conduct governing lawyers state-by-state. Despite these regulations, all classes of professionals routinely face legal woes as a result of poor record retention compliance. This risk intensifies as a …
Continue ReadingChinese Walls Are No Longer High Enough
The New Mexico Supreme Court recently entered a decision with ramifications regarding conflicts of interest in law firms. The issue: may a firm cure a clear conflict of interest by erecting a “Chinese wall.” The lesson: Chinese walls are not as strong as they used to be and some conflicts may only be cured through the disqualification of counsel, and maybe the entire law firm.
The underlying dispute in Mercer v. Reynolds, concerned the interpretation of an easement. The plaintiff alleged that it was entitled …
Continue ReadingColorado Shooter’s Psychiatrist Sued for Medical Malpractice
The widow of a man killed in last year’s mass shooting in Aurora, Colorado has filed a lawsuit against the alleged gunman’s psychiatrist claiming she knew of his threats to harm others and failed to warn of the imminent danger. Issue: When is a psychiatrist obligated to warn the public of her client’s threats to the public? Lesson: Threats of imminent harm cannot be taken lightly and preventive measures should be taken despite the application of doctor-patient confidentiality.
The widow of Jonathan Blunk, who was …
Continue ReadingWhen Your Client Lies: What we can learn from Lance Armstrong
Lance Armstrong’s legal team played a part in each of the racing metals, the Livestrong brand, the endorsements, the accusations, the denials and of course the many lawsuits he filed to defend his reputation. Frankly, in light of the recent confession on Oprah, Armstrong’s attorneys may be feeling a bit uncomfortable.
We now know that for years Armstrong was living a lie. Those lies filled court documents that were signed by various attorneys attesting to the truthfulness of Armstrong’s assertions. Those lies fueled settlements …
Continue ReadingEngagement Letters 101 – The Professional Rule Book
The first rule of engagement letters: obtain a signed engagement letter.
The second rule of engagement letters: obtain a signed engagement letter.
The remaining rules are a bit more complicated. A well written engagement letter is absolutely critical to managing risk. It defines the scope of the engagement and, as a result, sets appropriate expectations with the client. An engagement letter may help to discourage meritless malpractice claims and may serve as “Exhibit A” in a dispositive motion. On the other hand, the lack of …
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