The Sweetness of Quick Closure through Funds from Other Sources

In the professional liability world, errors occur.  To quote Forrest Gump, “*%&# happens!” These errors can carry great consequences, and can include payouts by insurers under E&O policies.  However, what happens when there is a possibility to rectify the error and place the would-be plaintiff in a position where they were before?  Also, how conceivable is it to utilize funds from other sources as a means to bring closure to claims.

Consider this example from a title dispute. In August 2010, plaintiff and two defendants …

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High Court Hands Victory to Secondary Debt Market

In Justice Neil Gorsuch’s first written opinion for the Supreme Court, he handed down a major victory for the secondary debt market by ruling that debt buyers do not fall under the definition of “debt collector” for purposes of the FDCPA. Under the FDCPA, debt collectors are subject to strict requirements when attempting to collect debts and violating these rules leads to significant liability. Until now, a split among the circuits existed as to whether the term “debt collector” includes entities that purchase debt originally …

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Debt Collectors Earn Win on FDCPA Claim for Stale Debt

Debt collectors recently won an important victory in the U.S. Supreme Court, which ruled that filing a stale claim in bankruptcy court does not run afoul of the Fair Debt Collection Practices Act (the “FDCPA”).  Although the Opinion does not affect a debtor’s potential claim for sanctions under frivolous filing rules, it does remove at least one potential avenue for recovery.

In Midland Funding, LLC v. Johnson, Midland filed a claim in the debtor’s Chapter 13 bankruptcy case for unpaid credit card debt Midland …

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What’s a “Communication” under the FDCPA?

The five-day rule under the FDCPA, which requires a debt collector to provide the precise amount owed within five days of its initial communication with a borrower, often operates as a trap to debt collection firms.  The lack of a statutory definition for “initial communication” means that courts are free to interpret what will qualify, leaving debt collection firms to make their own determinations as to what will sufficiently protect them from later lawsuits based on this section of the statute.  Although pleadings are still …

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Appraiser Targeted for Foreclosed Home

It has been almost a decade since the subprime mortgage crisis rocked financial markets across the world.  In response, we saw the introduction of the Dodd-Frank legislation, civil suits against many of the country’s largest banks, and the emergence of a new market for purchasing defaulted loans. Since this initial flurry of activity, the economy has slowly recovered and the topic largely disappeared from the public eye.  However, the legal wake continues to reverberate in the foreclosure litigation arena, with mortgage holders continuing to search …

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Professional Liability for Drone Operators

Unmanned aircraft, more commonly known as drones, are becoming increasingly popular in the civilian market.  Advances in technology have made drones easier to fly and have expanded their utility for recreational users.  Businesses likewise view drones as a new tool to increase their operations and bring new value to consumers.  For instance, Amazon, recently unveiled its plans to use drones to make same-day deliveries to customers. But what liability issues await?

The rise in drone use has also prompted a demand for professional drone services. …

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Miscellaneous Professional Liability: Travel Agent Protection

A statement of the obvious: professional liability involves claims against professionals. What professionals? Attorneys, accountants, architects, financial advisers and others who may purchase a professional malpractice insurance policy offered by various insurers. But what about the dozens of other classes of professionals who may not have an insurance product dedicated to them? That’s where miscellaneous professional liability kicks in. Today, we’ll focus on travel agents as an example of the types of exposure facing a “miscellaneous” professional.

As vacation season winds down, the number of …

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Lack of Leg Waxing License Puts Coverage at Risk

The majority of professional liability lawsuits target attorneys, accountants, and physicians. But, there are a series of so-called “miscellaneous professionals” who also face malpractice exposure: marketing consultants, recruiters, travel agents…and even leg waxing professionals. Many professionals are licensed by the state to practice in their chosen field and the failure to obtain such a license may void any professional malpractice coverage.

A recent decision issued last month, involving the negligence of a beauty salon, highlights the potential liability facing all professionals and imparts important …

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