Business people contract.

Law Firm Facing Malpractice Lawsuit Arising Out of Alleged Bad Advice in White Collar Crypto Defense

FACTS OF THE UNDERLYING ACTION

On September 6, 2024, an action was commenced in New York State Supreme Court, New York County, on behalf of Steven Nerayoff, an attorney and alleged crypto founder, who, when working for the Ethereum blockchain, allegedly “invented the ‘Utility Token’ and a structured method for selling these new digital assets to the public in what became known as the ‘Initial Coin Offering’ (‘ICO’) and created the first ‘Security Token’ or ‘Tokenization’ and Security Token Offering (‘STO’).” Complaint ¶3. Nerayoff’s …

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Legal Firm Defended by Goldberg Segalla has Malpractice Claim Dismissed

The Superior Court of Pennsylvania recently affirmed the summary judgment dismissal of a multi-million-dollar legal malpractice case against a Pennsylvania attorney defended by Goldberg Segalla.

The victory — secured by partner Seth Laver with assistance from partner Daniel Strick and attorney Joseph Ross — was particularly significant in that it involved complex, underlying issues and was heard in the often-difficult Philadelphia Court of Common Pleas.

The dispute stemmed from an injury suffered by a non-party who for 14 years was employed as a hotel waiter …

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Client Wins Dismissal after Legal Malpractice Claims Proven Insufficient

Stellar defense work by Goldberg Segalla partner Christopher F. Lyon and associate Matthew H. Feinberg secured in New York Supreme Court the dismissal of a claim brought against our client in a legal malpractice action.

The case was filed by a plaintiff who sued her former attorneys for allegedly failing to add in a timely manner a volunteer ambulance company to a lawsuit she initiated following a car accident. The plaintiff was treated for injuries at the scene and during that treatment, EMS — in …

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Bail bond concept. Gavel and dollar banknotes.

A Worrying Trend? Legal Malpractice Payouts Soar

Uh oh. Surveyed legal malpractice insurance carriers pointed to sympathetic jurors and aversion to trying cases as possible explanations for an “all-time high” in claims payouts despite similar year-over-year volume. According to data compiled by Ames & Gough, factors such as runaway verdicts and litigation financing have contributed to the rise in settlements. Those factors are among several accounting for a concept most readers are undoubtedly all too familiar with: social inflation, the increase of claims costs beyond the economic inflation so often in the …

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Does the Statute of Limitations Ever Apply in Legal Malpractice?

That’s the question on the minds of many in the legal malpractice community after a noteworthy decision in Pennsylvania.  

It’s probably reasonable to assume — at least from the defense standpoint — that the success rate of a statute of limitations (SOL) defense to a legal malpractice claim is virtually zero. This may be more so in some jurisdictions, especially those that permit a litigant to pursue tort as well as a breach of contract theory in these scenarios.

A dual theory approach may …

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You Dropped the Ball: Now What?

There are so many risk management sources, theories, and tips for the practitioner seeking to avoid a malpractice claim. But, there is less direction available to the professional that does make a mistake and knows about it. What are the obligations to the client, to the carrier, to others once we discover that we’ve dropped the ball? Are there implications on the statute of limitations? The South Dakota Supreme Court addressed these questions in a recent decision.

In the decision, available here, the court …

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Attorney or Scrivener? LPL Claim Dismissed Due to Non-Representation Clause

A recent decision rendered by the New York Appellate Division, First Department, on October 17, 2019, held that the lower court properly dismissed a legal malpractice complaint on the ground that documentary evidence established there was no attorney-client relationship. In Seaman v Schulte Roth & Zabel LLP, 176 A.D.3d 538 (1st Dep’t 2019), the dispute centered on the enforceability of a “non-representation clause” disclaiming the existence of an attorney-client relationship and reaffirmed the importance of providing such clauses where an attorney seeks to limit …

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Missed Deadlines, No Communication Equals Disbarment

Deadlines are a way of life for most professionals, certainly attorneys. The practice of law involves tons of deadlines, many of which are subject to some form of extension, but an attorney must take active steps to either meet each deadline or see to it that the deadline is adjusted. An attorney’s obligation of competency and communication require that counsel meet each deadline and inform her client when something goes wrong. In a recent disciplinary proceeding, an attorney was disbarred for failing to competently …

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Timed Out: Continuous Rep Doctrine Denied in Maine

You generally know the drill: a plaintiff has limited time to file suit. Generally, the statutory period begins when the plaintiff knows or reasonably should know that she has been harmed and that the defendant caused that harm. You also generally know that statute of limitations defenses are not nearly that simple. There are variables including the discovery rule and the gist of the action doctrine which may impact the argument. The continuous representation doctrine is another wrinkle that could affect whether a malpractice claim …

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