Counsel Responsible for Client’s Massive Ponzi Scheme?

Nine law firms face $500 million in damages arising from the alleged aiding and abetting of a large securities scam. The scam was perpetrated by a now defunct, relatively well-publicized real estate investment firm (“Investment Firm”) that operated a Ponzi scheme targeting the retirement benefits of the elderly.

The man responsible for the scheme pled guilty to a 25-year sentence in late 2019. Now, through its bankruptcy trustee, the Investment Firm is reportedly suing its attorneys and claiming that they knowingly assisted in the fraud. …

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Duty to Defend Wire Fraud

In Quality Sausage Company, LLC, et al v. Twin City Fire Ins. Co., Civil Action No. 17cv111 (S.D. Texas, Sept. 18, 2019), one of the plaintiff corporations (Plaintiff) fell victim to a fraudster who submitted fraudulent wiring instructions via email to Plaintiff on behalf of one of Plaintiff’s clients.  Per those wire instructions, Plaintiff improperly transferred $1 million from the client’s account to the account of a sham company. Uh oh.

The client sent a letter to Plaintiff and demanded compensation as this loss occurred …

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South Carolina High Court Allows Malpractice Claim by Insurer Against its Assigned Defense Counsel

Early March, in a narrow, carefully worded opinion, a divided Supreme Court of South Carolina ruled that a liability insurer may sue an attorney it retained to defend its insured where the attorney’s breach of its duty to the insured proximately causes the insurer damage. The decision adds South Carolina to the growing list of states that recognize a malpractice cause of action by an insurer against its assigned defense counsel. See Sentry Insurance Co. v. Maybank Law Firm, LLC, — S.E.2d —, 2019 WL 1119977, at …

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Professional Liability Matters Named Best Niche and Specialty Blog of 2018!

We are pleased to announce that the Professional Liability Matters blog has been named among the best niche and specialty blog in the country earning 3rd place overall in The Expert Institute’s Best Legal Blog Contest for 2018!

The Expert Institute — a leading legal service provider for identifying, verifying, and retaining expert witnesses — holds this annual contest to vet and recognize the best legal blogs out of the thousands that are on the web. In the 2018 Best Legal Blogs Contest — what …

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We Need Your Vote!

Attention blog readers!

We are proud to announce that our Professional Liability Matters blog has made it to the voting round in The Expert Institute’s 2018 Best Legal Blog Contest! Over the past month, this contest received thousands of nominations, which were then narrowed to the “most exciting, entertaining, and informative legal blogs online today.” The polls are now open – if you like our blog, please consider voting.

How it works: You can submit one vote per blog. In order to cast your vote, …

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Long Term Care: Emerging Trends

Claims in the long-term care industry have steadily continued to worsen for post-acute providers. According to a 2017 actuarial analysis conducted by AON, entitled “2017 Long-Term Care: General Liability and Professional Liability Actuarial Analysis,” the number of claims per 100 occupied beds rose from .71 in 2007 to .92 in 2012 to 1.03 in 2017. This same analysis found that the average amount to defend, settle, or litigate a claim rose from $165,000 in 2007 to $179,000 in 2012, to $223,000 in 2017. AON writes …

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Here’s to an Uneventful July 4th

July 4 is not the ideal time to consider insurance but for too many it is a reality. By way of a reminder, after voting for independence on July 2, 1776, in the midst of the American Revolution, Congress turned its attention to the Declaration of Independence.  The document was a statement explaining this decision, which had been prepared by a committee led by Thomas Jefferson. Congress debated and revised the wording of the Declaration, finally approving it on July 4, 1776. The following year, …

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We Need Your Vote!

Attention blog readers! We are proud to announce that Professional Liability Matters has made it to the voting round in The Expert Institute’s “2017 Best Legal Blog Contest.”  Over the past month, this contest received thousands of nominations, which were then narrowed to the “most exciting, entertaining, and informative legal blogs online today.”

To vote for this blog, visit The Expert Institute’s contest page here and click “vote” for Professional Liability Matters.

Only one vote is allowed per IP address, so please try voting on …

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Seeking Your Nomination

Attention blog readers! This year, the ABA Journal is publishing their first ever “Web 100” celebrating the best of the legal industry on the web. In order to be named, we’ll need your help. For years, Professional Liability Matters has been your source for trends, regulations, decisions, and breaking news impacting the professional liability community. Our goal is — and always has been — to educate you about the professional liability landscape and provide resources to help professionals avoid pitfalls and to defend those professionals …

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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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