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Law Firm Cleared in Case that Alleged Scheme to Defraud

A New York law firm sued in connection with a business deal gone awry, and accused of aiding in a scheme to defraud, saw the case against it dismissed thanks to a strategic and fervent defense waged by Goldberg Segalla partner Danielle N. Malaty.

Heard in the Northern District of Illinois, the case stemmed from a complaint by a plaintiff who claimed the target defendant — a wealthy investor — led an alleged racketeering scheme to defraud him and breach fiduciary duties.

The plaintiff …

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FASB Seeking Comments on Proposed Amendments Regarding Digital Assets

The Financial Accounting Standards Board (FASB) is seeking comments by Tuesday, June 6 on its newly proposed Accounting Standards Update (ASU).

With the world of digital assets moving at lightning speed, the FASB’s proposed amendments are part of its ongoing efforts to update accounting standards for, and disclosure of, certain digital assets.

WHAT IS THE FASB?

The FASB, established in 1973, is an independent, private-sector, not-for-profit organization that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally …

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Client Cleared of Malpractice, Wins Summary-Judgment Ruling

A Pennsylvania attorney sued in connection with a workers’ compensation matter was cleared of legal malpractice and the suit against him was dismissed after a court agreed with the arguments put forth by Goldberg Segalla partner Seth L. Laver.

The case stemmed from the alleged injuries suffered by a hotel banquet worker who claimed his decade-plus career resulted in cumulative trauma to his back. The claimant eventually underwent surgery from which he sustained a serious infection, leading to a lengthy hospital stay.

Central to …

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Christopher F. Lyon Co-Authors Article Exploring E&O Risks of Remote Professional Services in The Brief

Christopher F. Lyon – a partner in the firm’s Management and Professional Liability practice group – co-authored an article in ABA’s The Brief on the transition to remote work pre- and post-pandemic, and the new E&O risks associated with remote work in professional services. 

The article examines the shift to remote work for professionals including lawyers, insurance brokers, and financial-service providers.  

While the swift and growing transition, paired with advances in technology, provides increased flexibility and a cut in costs on expenses such as travel …

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Pre-Employment Testing for Marijuana?

In May 2019, Section 8-107 of title 8 of the NYC admin code was amended to make it unlawful for an employer and others to test for marijuana or THC as a condition of employment.  This law becomes effective May 10, 2020.  The NYC Commission on Human Rights is promulgating rules for the implementation of this law. There was a public hearing on Jan. 9, 2020 concerning potential exceptions to the general prohibition on pre-employment testing to which written testimony by interested parties was submitted.  There …

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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
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Law Firms (and Client Data) Held Hostage

Hackers have successfully hit at least five United States law firms within the past few weeks. Reportedly, the attacks are part of a coordinated effort potentially affecting nearly 200 victims in January alone. As if that were not frightening enough, the threat to law firms and to their clients, has magnified substantially in light of the type of attack now employed against law firms.

Rather than delivering a ransom note to the infected system and waiting for payment, the recent hackers are publishing the victim’s …

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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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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, …

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