Risk Management Archives - Professional Liability Matters

August 21, 2024 Risk Management

Managing Your Company’s Risk of Copyright Infringement

In the Internet era, every firm has a risk of copyright infringement. Employees copy and paste photos from the internet or embed social media posts to the company’s website or into a press release or news article. Images stored on the company server are renamed, and the scope of rights are no longer ascertainable. Artwork provided to a marketing partner is shared by that partner outside the scope of a license. Rights are believed to be secured for some content, but the licensor is not …

February 15, 2024 Miscellaneous Professionals / Risk Management

Recent Agent Breach of Contract Decisions of Note

As part of Goldberg Segalla’s commitment to client-focused service and ensuring you are kept apprised of the latest rulings and trends that could impact your profession, we would like to call your attention to two recent New York Appellate Division decisions relevant to the issue of insurance broker Errors and Omissions (E&O).

The first matter is an Appellate Division, Second Department decision (Ewart v. Allstate Ins. Co., 2023 BL 477206 (N.Y. App. Div., 2^nd Dep’t, Nov. 29, 2023) affirming dismissal of a breach …

Businessman holding files against his suit

February 15, 2024 Risk Management

Representation without Representation?

The Pennsylvania Office of Disciplinary Counsel has accused a Philadelphia attorney of initiating a high-profile lawsuit without client authorization.

Reportedly, the attorney filed suit on behalf of the father of a deceased boy who was killed by a Philadelphia police officer. However, according to the Disciplinary Board, counsel was never engaged for that purpose.

In the petition [HERE], the board alleges that counsel never met, nor spoke, with his purported client prior to filing. It is an uncomfortable situation that brings up some …

January 22, 2024 Risk Management

Brokers Better Be Ready for Bitcoin ETFs

KEY TAKEAWAYS:

The U.S. Securities and Exchange Commission (SEC) has approved the first spot Bitcoin ETFs, also known as an exchange-traded product (ETP).
With the SEC now permitting spot Bitcoin ETFs, brokers must become deeply familiar with the various cryptocurrencies to minimize the risks.
Clients will rely upon brokers to guide them through these uncharted waters, and being prepared is key.

The theory of an Exchange-Traded Fund (ETF) is not novel. An ETF is a bundle of securities you sell or buy through a brokerage firm …

February 24, 2020 General / Risk Management

Ensuing Professional Liability Implications with Homeowner or Condo Associations

Key Takeaways:

Make sure that the Homeowners Association (HOA)/Condominium board of directors includes protocols wherein its owners are aware of the rules (declaration and by-laws) and have appropriate expectations when living in the community.

In litigation, courts sometimes intervene and substitute its finding for the board’s finding in accordance with the business judgment rule, but are prohibited from intervening where the board acted in good faith and exercised honest judgment in the lawful and legitimate furtherance of the HOA/condo.

Boards should regularly work

February 3, 2020 Legal Malpractice / Risk Management

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 …

January 31, 2020 Coverage / Risk Management

Coverage Denied for Attorney Seeking Fee

At its simplest and most basic level, a professional malpractice policy for an attorney serves to insure against claims of malpractice. The devil is in the details, of course. In a recent decision, the Second Circuit affirmed a decision denying coverage to an attorney involved in a dispute over collection of his legal fee. The decision provides an interesting coverage lesson as well as a lesson about the sensitive nature of seeking to collect on a disputed fee.

In Continental Cas. Co. v. Parnoff, …

January 20, 2020 Defenses / Risk Management

Forum Shopping? Choose Philadelphia

America’s birthplace, home of the Liberty Bell, cheesesteaks and Rocky, the City of Brotherly Love is a destination for history, arts, culture…and personal injury cases. Once again, Philadelphia has been named America’s number one judicial hellhole in the annual ranking by the American Tort Reform Foundation for 2019. This is based on Philadelphia’s outrageous verdicts, amount spent on lawsuit advertisements, percent of out of state plaintiffs, and courts loosely applying venue rules.

Some highlights from 2019:

A major pharmaceutical company hit with an $8

November 4, 2019 Coverage / Risk Management

No Coverage for the Guilty

We know this, but many of our clients don’t: coverage is tricky. There are aspects of an insurance contract which may cut against instincts and societal expectations. For example, there are coverage implications when an insured apologizes for a perceived mistake. Anything that potentially jeopardizes the defense, including anything that can be perceived as an admission of liability, may result in a coverage denial. Along those lines, a recent decision highlights the coverage implications of a guilty plea in criminal proceedings.

In Nat’l Fire & …

September 9, 2019 Employment Practices Liability / Risk Management

Virtual Big Brother: Monitoring Employees

Data is everywhere. We’re being tracked in the car, in the grocery store, even when we’re walking the dog. As I write this, I’m being monitored as well, through employee monitoring administered by my firm’s I.T. department. This may help to prevent cyber-crime, as well as assisting with productive, employee locating and resources usage. Reportedly, effective employee monitoring systems can help productivity and therefore benefit the bottom line. However, it can also create problems with the employment environment. This is an important balance for all …