News & Analysis as of

Professional Liability

Wiley Rein LLP

Costs to Respond to Third-Party Subpoena Do Not Constitute a Claim

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The United States District Court for the District of Connecticut granted an insurer’s motion for summary judgment on the grounds that neither a subpoena issued as part of multi-district litigation nor a chart listing the...more

Sherman & Howard L.L.C.

AI Risks: Are You Covered?

You can’t go anywhere these days without hearing about the impact of generative artificial intelligence on … well, everything. The insurance industry is not immune from these impacts; it has been affected by AI in countless...more

Marshall Dennehey

Delaware Supreme Court Rules that Attorneys Are Liable for Malpractice Claims If a Sufficiently Developed Record Could Have...

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GMG Ins. Agency v. Margolis Edelstein, 2024 WL 1688869 (Del. Apr. 19, 2024) - Update: Prior to publication of this alert, the Delaware Supreme Court vacated its earlier opinion in GMG Ins. Agency v. Margolis Edelstein, 2024...more

Hinshaw & Culbertson - Lawyers' Lawyer...

Law Firm Best Practices to Mitigate the Increasing Risk of Attorney Disqualification Motions

It seems as though every day, there is a story in the legal news about a well-known law firm facing a disqualification motion. While disqualification motions are being filed more frequently, that is only half the story. Such...more

Downey Brand LLP

Grossman v. Wakeman, Ethical Dilemmas, and What We Owe Our Clients

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The California Courts of Appeal are typically pretty stingy with their published opinions – only about 10% of Court of Appeal decisions are published in the Official Reports.  And per Rule 8.1105 of the California Rules of...more

Goldberg Segalla

Law Firm Facing Malpractice Lawsuit Arising Out of Alleged Bad Advice in White Collar Crypto Defense

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FACTS OF THE UNDERLYING ACTION - On September 6, 2024 an action was commenced in New York State Supreme Court, New York County, on behalf of Steven Nerayoff, an attorney and alleged crypto founder, who, when working for the...more

Freiberger Haber LLP

In Pari Delicto … What Does That Mean?

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In Seitz v. Marcum LLP, 2024 N.Y. Slip Op. 51141(U) (Sup. Ct., N.Y. County Aug. 30, 2024) (here), Justice Robert R. Reed of the New York County Commercial Division addressed the doctrine of in pari delicto, which “bars a...more

Rumberger | Kirk

Viewpoint: Early Action Key to Mitigating Risk in Professional Liability Claims

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Professional liability claims impact a multitude of professions, including those in the legal, medical, financial and insurance industries. Claims for malpractice, breach of contract, breach of fiduciary duty and related...more

BakerHostetler

SEC Approves PCAOB’s Rule Expanding Contributory Liability

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For nearly two decades since its enactment in 2005, PCAOB Rule 3502 prohibited any “person associated with a registered public accounting” firm from taking or omitting to take an action knowingly or recklessly in a way that...more

Holland & Knight LLP

SEC Cyber Enforcement Update: Which Way Are the SolarWinds Blowing?

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The SEC has been aggressively pursuing cybersecurity investigations and enforcement actions against public companies and foreign private issuers. In these actions, the SEC often alleges one of two theories: 1) that the...more

White and Williams LLP

Revisiting the Treating Physician Rule: PA Supreme Court Limits Ability of Defense Counsel to Represent Nonparty Treating...

Last month, in Mertis v. Oh, the Supreme Court of Pennsylvania held that a physician subpoenaed for deposition in a malpractice case does not have unfettered discretion in choosing his or her attorney. Rather, the Supreme...more

Hinshaw & Culbertson - Lawyers for the...

Lack of Expert Testimony Results in $1.4 Million Legal Malpractice Verdict Being Overturned

Chamblee Ryan, P.C. v. JBS Carrier, Inc., No. 12-23-00125-CV (Tex. App. — Tyler June 12, 2024) - Brief Summary - Plaintiff, JBS Carriers, Inc. (“JBS”), sued Chamblee Ryan, P.C. (the “defendant”) for legal malpractice related...more

Rivkin Radler LLP

Insurance Update - June 2024

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Most pandemic-related businesses interruption insurance claims failed because policyholders could not show a direct physical loss. But some California courts issued conflicting decisions. The California Supreme Court has now...more

Goldberg Segalla

A Worrying Trend? Legal Malpractice Payouts Soar

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Uh oh. Surveyed legal malpractice insurance carriers pointed to sympathetic jurors and aversion to trying cases as possible explanations for an “all-time high” in claims payouts despite similar year-over-year volume....more

Wiley Rein LLP

No Coverage for Claim That Related Back to Prior Policy Period

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The United States District Court for the District of New Jersey, applying New Jersey law, granted an insurer’s motion for summary judgment, finding that an insured’s claim related back to a prior policy period when the...more

Hinshaw & Culbertson - Lawyers' Lawyer...

Fee Sharing Between Lawyers Under ABA Rule 1.5(e): How to Protect Yourself and the Client

I. Introduction - When done correctly, fee-sharing arrangements between lawyers can be lucrative for lawyers while simultaneously maximizing the quality of legal representation for the client without increasing the cost....more

Hinshaw & Culbertson - Lawyers for the...

A Defense Win in Texas on the Issue of "But For" Proximate Causation in a Legal Malpractice Case

Forshee v. Moulton, 2024 Tex. App. LEXIS 2520 (Houston [14th Dist.] April 11, 2024) - Brief Summary - The Texas Court of Appeals held that when a plaintiff's claim against her former attorney properly is grounded in...more

Marshall Dennehey

PA Superior Court Upholds Gist of the Action Doctrine to Bar Legal Malpractice Claim

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Outerlimits Techs., LLC v. O’Connor, No. 169 EDA 2023, 2023 WL 8524299 (Pa. Super. Ct. Dec. 8, 2023) (non-precedential decision) - The Pennsylvania Superior Court affirmed the trial court’s dismissal of the appellant’s legal...more

Wiley Rein LLP

Illinois Appeals Court Holds an Ankle Monitor Is “Potentially” Computer Hardware Triggering Duty to Defend Under Technology E&O...

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An Illinois appellate court, applying Illinois law, has held that a professional liability carrier had a duty to defend an ankle monitoring company against a lawsuit alleging bodily injury while wearing the ankle monitor...more

Hinshaw & Culbertson - Lawyers for the...

Illinois Appellate Court Affirms Default Judgment Against Attorney After He Repeatedly Fabricated Expert Witness Disclosures "From...

Iavor Stoyanov v. Himont Law Group, Ltd., et al., 2024 IL App (1st) 221434-U (April 15, 2024) - Brief Summary - The First District Appellate Court in Illinois held that the trial court (Judge Patrick J. Sherlock) was correct...more

Marshall Dennehey

Legal Updates for Lawyers’ Professional Liability - Case Law Update

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In Law Office of Drew J. Bauman v. Hanover Insurance Company, 2023 WL 2238552 (D.N.J. February 27, 2023), the plaintiffs maintained a professional liability insurance policy with the Hanover defendants from October 2017 to...more

Butler Weihmuller Katz Craig LLP

Scheduling, Compliance, and Liaison Tasks under the Professional Services Exclusion

Although a construction manager’s scheduling and liaison responsibilities do not require specialized training, such tasks may be sufficiently related to the actor’s other roles to be excluded from coverage under a liability...more

Marshall Dennehey

New ABA Formal Ethics Opinion on Attorney Office Sharing Arrangements

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The American Bar Association recently issued a Formal Ethics Opinion addressing the ethics of attorney office sharing arrangements. In Formal Opinion 507, issued on July 12, 2023, the ABA Standard Committee on Ethics and...more

Woodruff Sawyer

Update: What Medical Liability Reform Means for Healthcare Providers

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Almost two years ago, Governor Gavin Newsom signed Assembly Bill (AB) 35 into law, reforming California’s Medical Injury Compensation Reform Act (MICRA) of 1975. As discussed in this previous blog about MICRA reform, the...more

Wiley Rein LLP

No Coverage for Breach of Contract under Professional Liability Policy

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The United States District Court for the District of Minnesota, applying Minnesota law, has held that a law firm’s professional liability policy does not provide coverage for the firm’s alleged breach of various litigation...more

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