The so-called “tripartite” relationship exists when an insurer retains defense counsel to represent the interests of the insured. Against this backdrop, it is relatively uncommon for an insurer to maintain a successful claim against defense counsel. In the majority of states, direct malpractice claims by an insurer are disfavored. The theory behind these decisions stems from the sanctity of the attorney-client relationship and a hesitation to interfere with defense counsel’s duty to the insured in the tripartite scenario. Accordingly, few claims of this nature succeed. …
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Dual Representation Leads to Malpractice
We previously discussed the potential for a conflict arising when an attorney represents an employer and possibly an employee in the context of the Penn State/Sandusky scandal. The issue for the attorney is to delineate whether she represents the employer, the employee or both. An attorney cannot wear all the hats and therefore must disclose to an employee the possibility of a conflict. A recent decision from the California Court of Appeals demonstrates how easily a conflict may arise in this scenario.
In Yanez v. …
Continue ReadingAttorneys: Don’t be Michael Scott
There’s a great scene from the Office when Michael Scott continues to blindly follow his obviously incorrect GPS device until he has driven his car into a lake. Don’t be Michael Scott. There are times when an attorney must stop and question the client when the representation reaches an uncomfortable level or the attorney suspects wrongdoing.
We’ve previously discussed the allocation of authority between attorney and client. A more recent example of attorney misconduct highlights the potential for ethical ramifications when an attorney blindly relies …
Continue ReadingWho’s the Boss: Attorney or Client?
Communication is a key to a healthy attorney-client relationship. Client input is critical for the attorney to develop an understanding of the underlying events and the client’s goals. However, when it comes to litigation strategy, the attorney must tread carefully when the client disagrees with the suggested approach. In this scenario, who’s the boss? By one account, the “scope of representation” is one of the “thorniest issues involved in legal practice” yet it is widely misunderstood. Often, the attorney who understands the ethical principles …
Continue ReadingGroupon for Professionals? Ok, but Risky
Group coupon websites are a popular marketing ploy among a variety of service providers. The concept behind Groupon, Living Social, and similar sites is for consumers to select from local deals for discounted services. Typically, once a threshold number of coupons are sold, the service provider and the website share the proceeds. The professional liability community has caught on to this marketing trend and is taking notice. However, be aware professionals; utilizing similar group coupon sites is risky due to ethical limitations.
The …
Continue ReadingExposure to Disciplinary Action Away From Home
In most circumstances an attorney may only practice law in jurisdictions where she is licensed. Practicing law in a foreign jurisdiction may expose the professional to prosecution for the unauthorized practice of law. The Ohio Supreme Court recently considered whether an attorney who is not licensed to practice in the jurisdiction is subject to the forum state’s disciplinary authority in Disciplinary Counsel v. Harris, 2013-Ohio-4026 (Ohio Sept. 26, 2013).
In Harris, the defendant attorney was a member of the DC bar. Although he …
Continue ReadingThe Ethics of Billing During Travel
Client billing and fee disputes are at the heart of a significant percentage of all malpractice claims brought against attorneys each year. There are myriad courses and guides for ethical billing available for all professionals yet lawsuits and administrative complaints abound regarding billing issues. However, even the most well-intentioned attorneys encounter situations where the “rules” of client billing are not crystal clear; perhaps none moreso than the debate regarding billing for travel.
Reportedly, in 1965 law firm associates billed approximately 1500 hours annually whereas …
Continue ReadingEroding Policy Limits Spur Litigation
Professional liability insurance policies each contain limits of liability that set the upper threshold that the insurer will fund. However, a policy’s stated limit does not necessarily correlate to the amount that will be available to resolve a claim. Instead, many policies provide that the costs of defense are included within the coverage limit—every dollar spent on defense correspondingly erodes the amount available to resolve the claim. These so-called eroding limits, or defense-within-limits policies become particularly important in heavily litigated cases, where high defense …
Continue ReadingCertificate of Merit Blunder Results in Dismissal
A growing number of states have enacted some version of an “affidavit of merit” statute in professional malpractice matters. The intended purpose behind these laws is to reduce “unnecessary” or unsupported lawsuits. In states such as Pennsylvania, New Jersey, and others, plaintiffs in malpractice litigation must certify through an impartial professional in the defendant’s field that there is a fundamental basis for the complaint. While the specifics of the particular statute in each state may differ in terms of scope and application, the …
Continue ReadingLaw Firm Denied Coverage Due to “Fraud Exclusion”
Most professionals are governed by this universal rule: always act in the best interests of the client. But, there is an unspoken footnote to that rule: unless the client engages in unethical, illegal or otherwise improper conduct. Make no mistake, when a professional cooperates in the client’s foul play, she is also exposed to liability and perhaps a denial of coverage due to a fraud exclusion existing in many professional malpractice policies. This limitation became a reality for a Colorado law firm accused of assisting …
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