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Risk Management

Anatomy of a Ponzi Scheme in a Post-Madoff World

The Ponzi scheme expired with the arrest of Bernie Madoff, right? Absolutely not. Ponzi schemes are alive and well.  Many of these scams are reported but presumably many go unnoticed as criminals target the unsuspecting of millions.  Apparently, Madoff’s 2008 arrest did little to dissuade others from engaging in similar crimes, although on a lesser scale. According to the SEC, which compiles Ponzi scheme data, these crimes continue at a disheartening rate. 

A Ponzi scheme is an investment fraud that involves the payment of …

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Social Media Lessons

Facebook Post Lands Attorney in Hot Water

Fact: most professionals use social media in one form or another.  Fact: Professional Liability Matters has previously warned of the various risks associated with LinkedIn, Facebook, and other online communications. Nonetheless, we continue to encounter seemingly countless reminders of missteps by professionals through presumably well-intentioned social media use.  Recently, a Facebook post from a New York based attorney resulted in a fight over sanctions.

Last month an NY attorney found himself in hot water after posting a picture of himself and a client …

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Cyber-Liability

Cyber-liability: An International Problem

Legislation was recently introduced in the Australian parliament that would require companies to publicly disclose data security breaches.  The legislation is intended to protect the public by ensuring they are promptly notified if their personal data is compromised.  Under the proposed legislation, an administrative agency in Australia would be empowered to levy fines of up to $1.7 million on companies that fail to comply with the disclosure requirements.  Clearly, cyber-liability is an international problem.

While the proposed legislation has the purpose of protecting the public …

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Engagement Letters

The Break-Up: Knowing When the Professional Relationship is Over

All good things must come to an end…and most bad things too.  The same must be true with a professional’s engagement.  Professional Liability Matters has previously warned of the importance of clear engagement letters to set reasonable expectations regarding the scope of the relationship. But many professionals may take for granted the importance of clarifying when that relationship has come to an end.  This is a key risk-management pointer to avoid malpractice.

A recent New York case provides clarity on the otherwise murky issue of …

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Agents and Brokers

Insurance Agents in the Wake of Superstorm Sandy

Superstorm Sandy’s wind and rain are long gone but the storm’s legal wrath has only just begun.  As the cleanup continues, and insurance and legal issues pile up, we are starting the see the first wave of lawsuits following the storm.  In particular, the initial targets appear to be insurance agents.

In a recent suit filed in New Jersey Superior Court, a Yacht Club alleges that its insurance professional failed to procure sufficient coverage.  The Raritan Yacht Club allegedly sustained significant damage from the October …

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Ethics / Risk Management

Alleged Conflict of Interest Leads to Malpractice Suit

A prestigious and well regarded Philadelphia based law firm was recently named in a multi-million dollar malpractice lawsuit arising from an alleged conflict of interest. The plaintiff alleges that the firm’s relationship with her ex-husband’s employer resulted in a less than favorable outcome in her divorce proceedings.  In 2009, the plaintiff wife retained the law firm’s matrimonial group to represent her in divorcing her husband who held a high position at Morgan Stanley. While the divorce case was proceeding, the law firm was retained …

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Risk Management

Insurers’ Communications Protected by Attorney-Client Privilege

A recent decision provides insight on the application of the attorney-client privilege to communications between an insurance professional, who was also an attorney, and the insured. Generally, all claims are assigned to an insurance professional to monitor and, if applicable, to strategize with insurance-appointed counsel.  It is widely accepted that communications between defense counsel, the insurer, and the insured are protected by the attorney-client privilege pursuant to the so-called tripartite relationship.  However, there is no privilege that applies to communications only between insurer and insured. …

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Professional Liability Monthly

Cases for Professional Liability Monthly – May 2013 Edition

Cases provided courtesy of LexisNexis.

ARTEAGA v. UNITED STATES OF AMERICA

BERGSTRESSER v. BRISTOL MYERS-SQUIBB CO.,

BOARD OF MANAGERS OF NV v. MORTON ET. AL.

BYRNE v. THE CLEVELAND CLINIC

GRABOFF v. THE COLLERAN FIRM

GROGINS, et. al. v. LAMPERT, WILLIAMS & TOOHEY, LLC

MAURER v. WILLIAMS

NICHOLS v. THE MILFORD PEDIATRIC GROUP, P.C.

SANTORSO v. BRISTOL HOSPITAL

SOJA et. al. v. KEYSTONE TROZZE, LLC

TARGONSKI v. CLEBOWICZ

USACM LIQUIDATING TRUST v. DELOITTE & TOUCHE

VILLANUEVA v. FIRST AMERICAN TITLE INSURANCE COMPANY

WINSTOCK v. GALASSO…

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Legal Malpractice / Risk Management

Collection Proceedings against Clients Often = Malpractice

Ever hear the cruel joke about a thankless client who achieves a wonderful settlement through her attorney’s legal prowess only to terminate the lawyer before the settlement ink is dry? Well, for some unfortunate attorneys it’s a reality. Attorneys in this pickle face the unenviable decision of whether to initiate a collection action against the former client to collect on unpaid legal bills or to sue under a quantum meruit theory. Reportedly, however, fee disputes are at the heart of a significant percentage of …

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